NEC3 ECC: Amount Due on termination of the Subcontract

In clause 93.1, I am happy that A1 and A2 are amounts due upon termination, what I cannot seem to clearly determine is A1.

The Subcontract is an option A.

Firstly,

an amount due is assessed as for normal payments , so an activity that is 100% complete is paid accordingly and the Subcontractors receives his fee amounts included therein.

Then as other Defined Costs incurred in expectation of completing the whole of the works, I am taking this as part completed activities.

So I pay Defined Costs to the Subcontractor, however this does not seem to include fee percentages, so the Subcontractor could be out of pocket as a result.

This does not sound right, can anyone advise on how Fee % is added to the Defined Costs of Activities not completed when payment are made on termination.

1 Like

You are nearly there you also need to look at the reason for termination in the termination table 90.2 - the amount due is A1 and depending on the reason will also include a combination of A2, A3 or A4 e.g. cause 93.2 A4 direct fee percentage applied to Options A, B, C and D