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Section 5— Payment

Clause 52.3

Defined Cost — Fee Percentage

Purpose

The Fee is calculated by applying the fee percentage stated in the Contract Data to the Defined Cost. The Fee covers the Contractor's overheads and profit.

Practical Application

The fee percentage applies to all Defined Cost, including CE assessments. The Contractor should ensure the percentage fully covers overheads and profit margin.

Common Pitfalls

If the fee percentage is too low, the Contractor may not recover its true overhead costs. Fee percentages are fixed at contract signature and cannot be changed.

Related Clauses

Clause 52.2Clause 63.3

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.