I think this question is a little confused as there are two separate aspects here. Firstly, whatever the Contractors price is and how it is made up is up to you to review and interrogate before you appoint the Contractor. You would be considering their price, and also their direct fee percentage/subcontractor fee percentage in contract data part 1. They may be marginally the cheapest bidder but then if higher percentages in CD1 means that their compensation events will be higher and in the long run more expensive.
The subcontract fee comes into play after contract award with individual compensation events. If there is a compensation event - the Contractor uses Defined Cost - whether these works are subcontracted or not (i.e. not use subcontractor lump sum quotes). Therefore they have to break subcontractor costs down into the 7 categories of the SSCC, and then they can apply the subcontract fee percentage (which is fixed in contract data part 2) to the subcontracted people cost in section 1.
The subcontract fee comes into play after contract award with individual compensation events. If there is a compensation event - the Contractor uses Defined Cost - whether these works are subcontracted or not (i.e. not use subcontractor lump sum quotes). Therefore they have to break subcontractor costs down into the 7 categories of the SSCC, and then they can apply the subcontract fee percentage (which is fixed in contract data part 2) to the subcontracted people cost in section 1.
