Frequently Asked Questions

Question
We are using the NEC3 Engineering and Construction Contract (ECC). If our designers are co-located in the site offices, is the working areas overhead applied to the design costs?
We will assume that the co-located offices are part of the working areas. In that case, designers are not paid for using the rates and overhead percentage in the contract data, because item 6 of the schedule of cost components makes it clear that these only apply to design work done outside the working areas.

In that case the designers are paid for in the same way as any other person in the working areas, that is based upon what it has actually cost to employ them using the rules set out in items 11 to 14 of the schedule of cost components. To those costs are then added the percentage for working areas overheads, just the same as any other person in the working areas.

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