Ignore the BCO, or at least ask him the basis for his request (it can't be an instruction).
Oversite does not require a DPM, and damp-proofing to the timber floor is via a DPC in the supporting walls or sleeper walls
There is no need to put a DPM under the oversite - in fact this will effectively prevent drainage of the floor and could trap excess moisture in the floor void
I don't recall the BS for oversite under floors, but the only requirement is that it is trowel or spade finished smooth. It does not require a DPM, but hardcore is optional if you need to build the ground up
Also the minimum distance from concrete surface to underside of joists is 150mm, and the DPC under the wallplate must be minimum 75mm above the concrete.