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NEC ECC: Defined cost People rates - Hours utilisation for differing clients

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I am working a large programme currently using an NEC3 ECC Option E Contracts, soon be transitioning to NEC3 ECC Option C Contracts. (I personally work Employer side).

A question has been raised as to how many hours a contractor can claim for an individual against our contract in instances where the individual in question is also spending time working for another employer.

Example - We have defined a 40 hour working week is allowable for our contractor to apply for providing the contractor complies with the terms of the contract (Required to provide the works & within the working area). The contractors cost to employ calculation (which provides the individuals people cost rate) is also based on a 40 hour week, as are the individuals T&C's. Our contractor is claiming that if said individual works a 50 hour week (40 hours to our contract, 10 hours to a different employers contract) they are still within their rights to apply for 40 hours of cost against our contract using the same rate. Please note: Person in question is not entitled to overtime.

My stance is that as the contractor can only recover defined cost they should only be able to recover the defined cost incurred. This would either result in a pro-rata calculation being applied to time, or the cost to employ rate would be reduced to take into account the revised working hours.

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