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Answered: NEC ECC: SSOCC Option A - compensation event subsistence costs

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Under clause 63.1, the change to the Prices is the EFFECT of the compensation event on Defined Cost (whether forecast or not) + Fee. Cost comes from use of the resources, so the first question is something like  "are these resources in the Working Areas longer as a result of the compensation event(s) ?"

If 'Yes', then you can proceed to see whether they satisfy the rules of the SSOCC.

Firstly, if you look at clause 41 of the SSOCC, the costs that percentage for People overheads could cover are
- water, gas & electricity  that the people who stay in the Working Areas are using;
- buying or leasing land upon which this accommodation is sited;
- communal catering and recreation (excluding the actual accommodation) costs.

So are the more direct 'subsistence' payments Defined Costs. This is where I disagree with the direction of the 3rd and 4th editions in assessing People costs, because item 11 of the SSOCC is so high level ... and in the 4th edition you just have what is tendered as a People Cost with 'equivalent rates' if no rate exists, which is even vaguer.

Having said this, in the 3rd edition, the full SOCC can be used by agreement and it is likely, in the case of a dispute, that the full SOCC would be used as the basis to inform what "amounts paid by the Contractor" means. And the full SOCC, in bullet 13(b) has "travel and subsistence" so, in my opinion, these should be paid.

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