You get to claim one fee (well two really, as you have subcontract fee percentage for subcontracted elements and direct fee for everything else). To build up your target price that you are committing, it will be the actual cost you think you will incur plus the fee (which includes head office costs and profit). That will therefore be a percentage of the "activity cost" as you have called it.
This fee is then carried forward when it comes to assess compensation events. It will be forecast defined cost, plus the fixed fee. If the target cost is £10mil which is made up of £9mil cost + £1mil head office costs + profit then your fee is 10%. That fee needs to be enough to cover the same extra over costs for a CE that you can't claim for within the schedule of cost component elements. You obviously don't particularly need to justify what proportion of fee is within your target cost, but given that you complete within contract data part 2 what your direct fee percentage is they will obviously have a fair idea.
This fee is then carried forward when it comes to assess compensation events. It will be forecast defined cost, plus the fixed fee. If the target cost is £10mil which is made up of £9mil cost + £1mil head office costs + profit then your fee is 10%. That fee needs to be enough to cover the same extra over costs for a CE that you can't claim for within the schedule of cost component elements. You obviously don't particularly need to justify what proportion of fee is within your target cost, but given that you complete within contract data part 2 what your direct fee percentage is they will obviously have a fair idea.