Common use of Schedule of Cost Components Clause in Contracts

Schedule of Cost Components. 2.1.2.1 The Schedule of Cost Components (SCC) contained in the NEC3 ECC is used to: a) define the cost components, which are included in an assessment of changed costs arising from a compensation event; and b) define the cost components for which the Contractor will be directly reimbursed. 2.1.2.2 The Schedule of Cost Components (SCC) is based on the following: a) People working within the Working Area i.e. those parts of the working areas which are necessary for Providing the Works. b) Plant and Materials are items intended to be included in the works. c) Equipment relates to items provided by the Contractor and used by him in the Working Area to Provide the Works and which the Works information does not require him to include in the works. d) Charges include water and electricity and people overhead costs incurred within the Working Area. e) Items not listed in the SCC are covered by the Fee. 2.1.2.3 The Site is the area within the boundaries of the site and the volume above and below it which are affected by work included in the contract. This area will comprise locations provided by the Employer for the works. The Contractor may establish depots or use areas of land for the purposes of the contract which are distant from the Site, e.g., borrow pits or compounds, in which case he should describe such areas in the working area in the Contract Data: Part 2 – Data provided by the Contractor (see data associated with clause 11.2(18)). Cost for people, certain charges and Equipment in these areas will be included in the SCC. If no such areas are described, all work undertaken off site save for people costs relating to the contracts manager, contracts director and senior cost controller is covered by the Fee. 2.1.2.4 Defined Cost includes only amounts calculated using rates and percentages stated in the Contract Data and other amounts at open market rates or competitively tendered prices with deductions for all discounts, rebates and taxes. 2.1.2.5 Costs not included in Defined Cost are treated as being in the Fee. Examples of cost components not included in the SCC are: a) head office charges and overheads save for those in the overhead percentages for design and manufacture and fabrication; b) insurance premiums and corporation tax; c) advertisement and recruiting costs; and d) securities and guarantees required for the contract