NEC3 ECC Additional Damage Costs

A new build residential scheme ( 2 flats with a store underneath ) is completed and both are occupied. LADs have been applied to the contract for late hand over.

There has been an ongoing defect which has cause additional damage to the retail unit which has resulted in damage stock.

How are the costs associated with damage stock calculated? Is this deducted from project retention or do you apply the contract LAD weekly rates?

It is a D&B ECC Option A Contract

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This would seem to be an insurance matter and will depend on at what point you in the contract e.g. before or after Completion and whether in the period upto the defects date and also what insurances are required by the contract. Clause 84.2 sets out the insurance table and one heading is liability for loss or damage to property.