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NEC3 ECC: Defects - mechanics of clause 44 & 45

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The C has not complied with the WI and the PM wants to accept the defect in order not to delay Completion. The C will not give a quotation. The PM appears to have no option to pursue under clause 44 and defaults to 45. 45.2 states that the C pays the amount assessed to correct the defect and the C pays the amount. It goes on to say the WI is changed to accept the defect. Does the PM also reduce the prices when changing the WI? If not would the C not potentially benefit from an increased gain share / reduced pain share?
asked Mar 30, 2016 in Testing and Defects by Tom Shearn  

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Remember what clause 50.2 tells you. The amount due each period is the Price for Work Done to Date plus/less any other amounts to be paid to/from Contractor. This amount to correct a defect would now be "another amount" and in fact the Contractor will pay for this 100% rather than form part of the gain/pain calculation. Therefore no need to adjust the Target (The Prices).
answered Mar 31, 2016 by Glenn Hide Panel Members (74,820 points)