People

There's no NEC people definition in the core list at clause 11.2. "People" has its everyday meaning, and specific rules apply depending on where the word appears: clause 24 on key people and removal, and section 1 of the cost schedules on what can be recovered. "People Rates" is a separate, defined term on some main Options.

If you're trying to work out whether someone's cost is recoverable or whether they can be removed from site, the answer comes from those clauses, not a definition. This page sets them out as part of the NEC definitions glossary.

Where "people" matters

Place	What it covers	The practical question
Clause 24.1	Key people named in the Contract Data	Can this person be replaced, and who decides?
Clause 24.2	Instruction to remove a person	Can the Project Manager force someone off the job?
Schedule of Cost Components, section 1	The cost of people on cost-based Options and in compensation events	Does this person's cost count as Defined Cost?
Short Schedule of Cost Components	People, usually through rates in the Contract Data	Which rate applies?
People Rates, defined by main Option	Rates set out in the Contract Data, which can later change under the contract	What are we paying per unit of time?

Key people under clause 24.1

The Contract Data can name people for specific jobs, such as a project director or a design lead. The Contractor provides each of them, or a replacement the Project Manager has accepted. It submits the name, relevant qualifications and experience. One allowed reason for refusing is that the replacement isn't as qualified or experienced as the original.

Replacing someone without acceptance is a common mistake. In NEC3 the clause says "employs" and in NEC4 it uses "provides", which better fits consultants and agency staff. Either way, the step is often skipped when somebody leaves, which can come up later in a dispute.

Removal under clause 24.2

The Project Manager can instruct the Contractor to remove someone, giving reasons. The Contractor then has one day to make sure the person is off the work included in the contract. The clause doesn't limit what reasons may be given. NEC3 refers to removing "an employee" whereas NEC4 refers to "a person". Consider employment law and the facts before using this power, and take advice if you're unsure.

The cost of people

Here's where the money is. Section 1 of the schedule applies a test based on employment and location, not job title. The guide to people costs gives the full table.

A worked example

A fictional job on Option C, with illustrative staff.

Person	Where they work	Result
Site agent, directly employed, based in the site office	Working Areas	Cost counts for the job, for the listed items
Regional planner, directly employed, on site two days a week	Mostly head office	Cost counts in proportion to time in the Working Areas
Agency labourer, paid by the hour, on site	Working Areas	What the Contractor pays for them counts, under the item for people not directly employed
Bid manager at head office, never on site	Head office	Not a people cost. The Fee has to cover it

Move the regional planner's desk to the site office, and the answer changes. That's why the Working Areas matter so much, and why a Contractor should identify any remote office that it wants included, in the Contract Data or through a proposal to add it.

What people get wrong

• Looking for a definition that isn't there. Any argument starting "the definition of people says" needs a closer look at which clause is really meant.
• Assuming all staff on a timesheet count. The schedule looks at where they normally work and where they spend their time, not who books time to the job.
• Claiming beyond the listed items. Items 11 to 14 list what counts. Anything else needs a matching item, or the Fee has to absorb it.
• Using old terminology. NEC4 changed several phrases. Check your own edition before you quote, and don't apply a rule from the Term Service or Professional Service forms to an ECC job without checking.

Related guides

• NEC Definitions: A Glossary of Key Terms
• Plant and Materials
• Prices
• Price for Work Done to Date
• Others
• Parties

This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.