Under NEC 3 option A we have received a tender price from a contractor which includes subcontractors works. As part of this, the quote shows the subcontract cost and includes the subcontractor fee for the total of that subcontract package. The contractor then has included their fee on top.
Is it correct that the client should be paying the cost of the subcontractor package including the fee as it feels we are paying fee on fee?
1 Like
Apologises if I have misunderstood the question. If you are referring to a tender return (as opposed to a quotation for a compensation event) then you will have to check the directions given in the invitation to tender and if the return complies with them. If it does, normally there is no guarantee regarding award of tenders so it will be for the client to decide if it wants to accept the offer.
If it is a quotation for a compensation event under an existing contract then the subcontracted fee % should be applied to the Defined Cost of the subcontracted work and the direct fee % to the other elements of Defined Cost. The direct fee % should not be applied in addition to the subcontracted fee %.
1 Like