Subcontractors in Compensation Event Quotations

NEC3 and NEC4 Contracts Compensation Events
1

In Contract Data Part 2 of a main NEC3 Option A contract there is a schedule of people rates.

These people rates are used in CE quotations for directly employed people.

However, Clause 11.2(22) states “Defined Cost is the cost of the components in the SSCC whether the work is subcontracted or not . . . . . . . . . . . . “

Does this mean that the aforementioned people rates are used in Compensation Event quotations for the people element of sub-contracted works?

If so, under what circumstances, is the subcontract element of the quotation assessed as “the amount paid” to the subcontractor?

2

@turleya In my view, unless clause 11.2(22) and the SSCC are amended accordingly, having rates for People in CD Part two creates issues, because the standard form does not allow for them (in contrast with the NEC4 Option A form). You will also note that the SSCC, in its unamended form, does not mention People rates.

I do not believe that the above answers your question but, in any event, Project Manager and Contractor can agree to use those rates under clause 63.14 for each CE (for both direct and subcontracted work).