We are a Subcontractor who has completed works on a project, the Subcontract used was an NEC4 Option A.
We have just been notified that the client has rectified works that we carried out, this was due to our design (CDP) not being compliant with the ER’s. We have had no prior notification of this as a defect, the client has advised that they intend to deduct the costs from our account.
Can they do this? Have they not removed our entitlement to rectify the defect and or provide a solution.
I would add that there is amendment to clause 46, however, I do not feel that this is applicable as this is not an uncorrected defect as it was never notified. Amendment as follows:
46.3 Any additional costs, losses and/or expenses (including professional fees) incurred by the Contractor as a result of any work, materials or goods not being in accordance with this subcontract may be deducted by the Contractor from any monies due or to become due to the Subcontractor under this subcontract or may be recovered from the Subcontractor as a debt.