If the other part of the group is separate limited company, then they would count as a Subcontractor.
However, under NEC3, as opposed to NEC4 where it is different, how the Contractor's subcontract fee percentage is applied varies :
- on options A & B for compensation events only, the Contractor's subcontract fee percentage is applied to Defined Costs worked out in accordance with the main contract Shorter Schedule of Cost Components. Or put another way, what the Contractor pays the subcontractor is irrelevant to the calculation.
- on options C to F, a Defined Cost is what the Contractor pays to their subcontractors in accordance with the subcontracts and on top of this is added the subcontract fee percentage. And this applies to all Defined Costs, whether for a compensation event or not.
However, under NEC3, as opposed to NEC4 where it is different, how the Contractor's subcontract fee percentage is applied varies :
- on options A & B for compensation events only, the Contractor's subcontract fee percentage is applied to Defined Costs worked out in accordance with the main contract Shorter Schedule of Cost Components. Or put another way, what the Contractor pays the subcontractor is irrelevant to the calculation.
- on options C to F, a Defined Cost is what the Contractor pays to their subcontractors in accordance with the subcontracts and on top of this is added the subcontract fee percentage. And this applies to all Defined Costs, whether for a compensation event or not.