For an NEC Option A contract under a framework agreement which has pre agreed fee percentages, we have received a tender in which the Main Contractor has provided the subcontractor cost, with the subcontractor fee percentage shown as an additional item to be add, plus their relevant fees as part of the framework. I am unclear on why they have included the subcontract fee percentage as part of the cost for tender and if as the client we should be paying this as part of the tender price.
Hi Alex,
I think from what you say in regards to a ‘tender under the framework’, this seems to be a question relating to how your specific Framework is intended to operate rather than the NEC contracts?
If that’s wrong could you be a bit more specific with your query please, including whether it relates to NEC3 or 4?
Hi Steve, thanks for your reply - sorry for not being specific,
This is an NEC 3 Option A contract. The framework has pre agreed fee which is included on all tender prices and compensation event to cover OH&P and prelims. In this case however they are subcontracting the works - my worry is around are we as the client paying a subcontract fee agreed between the contractor and the subcontractor, plus then paying the pre agreed framework fee on top.
I understand it could be quite niche considering the contract is under a framework. I would just like to be clear on how direct fee and subcontract fee % functions in a tender return.
Thanks