Cl 93.2 - The amount due on termination

NEC3 and NEC4 Contracts Termination
1

Please could you explain Cl 93.2 - A3

‘A deduction of the forecast of the additional cost to the Client of completing the
whole of the works’.

Does that mean just the cost to the Client of getting another contractor engaged through the tendering process, or the total cost to the Client including getting another contractor engaged plus the Clients staff costs and the Defined Cost of the remaining work etc?

2

Hi Martin,
I read it as the total cost, there is nothing in the wording that imposes any sort of restriction on what type of costs they are other than they are incurred in completing the whole of the works, it would appear limitless.

The NEC4 guidance notes volume 4 state that it represents “at least some of the damages which the Client suffers arising from the Contractor’s breach”. Other costs such as loss of rental, etc, are not recovered through this provision.

Happy to discuss.

3

Thanks for that Steve.
So would you consider that any commercial benefits the Client would be missing out on because of the delay caused by termination are not recoverable?
Regards

Martin Jagger
Tel. +44 7709 181691