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NEC3 ECS - Delay Damages - recovering Contractors costs from Subcontractor

+1 vote
The scenario is:

Main contract between Employer and principal Contractor = Delay Damages defined at £795.00 per day.

Subcontract between principal Contractor and Subcontractor = Delay Damaged also defined at £795.00 per day.

Am I correct in saying that in this scenario the delay damages in the subcontract have been defined. Therefore should the instance occur where the Employer makes a claim against the Contractor for delay damages due to a fault by the subcontractor, the Contractor can only claim a maximum of £795.00 per day from the subcontractor and does not have the ability to also claim for his own loss and expense in addition to this?
asked Jan 13, 2017 in NEC3 Secondary X, W & Y options by NEIL1982 (130 points)  

1 Answer

+1 vote
Yes. If your Subcontractor is later than their Completion Date then you can only charge them £795/day as per their contract. If your Employer is charging you £795/day for being late, then any other costs that you are incurring would be your problem - there is no where else in the Subcontract that allows you to recover additional cost that you the Contractor are incurring for being late.
answered Jan 13, 2017 by Glenn Hide (33,710 points)