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NEC ECC: Under option C, are the costs of dealing with an adjudication brought by a subcontractor disallowed?

+1 vote
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The main contract is ECC Option C and a Subcontractor has brought an adjudication against the main Contractor. The PM has disallowed the costs that the Main Contractor has incurred in legal fees and adjudicators costs in dealing with the adjudication.
I believe that costs of adjudication are only disallowed where the main Contractor is conducting an adjudication against the Employer but would welcome any comments.
asked Nov 10 in NEC3 Payment by anonymous   1 4
   

1 Answer

+1 vote
I understand where you are coming from but the express wording of the contract says otherwise i.e. clause 11.2 (25) stated "Disallowed Cost is ... the cost of ... - preparation for and conduct of an adjudication ... ." It does not limit this to under the main contract only.
answered Nov 10 by Jon Broome (25,100 points)  
Thanks John. At least this anomaly has been cleared up in NEC4 where it is only disallowed when the adjudication is between the Parties. 11.2.26