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NEC3 ECC: Are statutory service providers deemed as sub-contractors & does the risk for their performance lie with the main contractor?

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ECC Option A: Very limited information provided in Works Information & Contract Data in regard to incoming services and who's risk this is.
Works Information confirms the Contractor is to place an order for the works with the statutory service provider. Obtaining a quotation will take 12 weeks and a price for the activity schedule is required within 2 weeks. Should the Contractor price the risk and either benefit or lose out as a result of his estimate, or is there an alternative method for re-pricing the works at a later date?
If the statutory provider fails to perform would this failure be deemed a Compensation Event under Clause 60.1 (5)?
asked Dec 1, 2016 in NEC3 Compensation Events by Alan Powell  
   

2 Answers

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Alan, I'm not clear if you are in a tender situation or in contract.

From your comments it seems that its a tender situation. Not knowing the basis and stages of the tender process, I would suggest a Tender Query is raised explaining the situation and requesting a tender extension. If the extension is not forthcoming then you will need to check the requirements of the tender invite.

In respect of 60.1(5), the SU would not be classed an Other since they will have an order with the Contractor.
answered Dec 2, 2016 by dave bates (4,950 points)  
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One way or another this risk should have been clarified at tender stage as to whose risk this was. A combination of Works Information, Employers risks, Z clauses should have made this clear as to whose risk this was. If it was not made clear then you are more than likely ending up with a subjective situation if you are now on alive job.
answered Dec 2, 2016 by Glenn Hide (29,340 points)