Source: https://www.quantsurv.com/resources/glossary/fee Content format: Markdown version of the public page. Content reviewed: 2026-09-30 # Fee (NEC): definition and example In an NEC contract, the percentage added to Defined Cost to cover your overheads and profit. By [Jack Butler-Kettle]() · Updated 30 September 2026 Guidance for England and Wales. Check the contract, amendments and facts that apply to your job. ## What it means in practice Read this alongside [the NEC Dictionary of Terms](). In NEC terminology, Fee is calculated using the applicable contractual percentage and cost basis. It should be distinguished from a consultant's professional fee and from amounts already included in Defined Cost. The form, option and amendments govern the calculation and avoid double counting. Show the cost basis and Fee separately. [Compensation event recovery]() can help present a quotation with traceable components and assumptions. ## Worked example ### The facts An illustrative compensation-event assessment has £10,000 of applicable Defined Cost and an agreed 8% Fee percentage. ### What happens 1. The subcontractor confirms that the £10,000 is the correct contractual basis. 2. It calculates £800 of Fee and checks that overhead items have not been counted twice. ### What this shows The illustrative total is £10,800 before any other applicable adjustments; the percentage must come from the actual contract. ## Sources 1. [NEC Dictionary of Terms](). NEC Contracts.