For NEC3 Option A the default assessment of compensation events is Defined Cost + Fee. Clause 11.2(22) defines Defined Cost is based on the Shorter Schedule of Cost Components (whether work is subcontracted or not). The Contractor should therefore be basing its assessment on the components in the Schedule and not just subcontractor cost eg People as item 11.
The assessment should include the People overhead % applied to People and since the work is subcontracted the Subcontract Fee % should be used.
The assessment should include the People overhead % applied to People and since the work is subcontracted the Subcontract Fee % should be used.