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NEC ECC: Clarification of question on termination and liability for defects?
Could you please clarify your answer below- does it mean that work done before the termination date will still carry Defect Liability post the termination date for the remaining 6 months of the Defects Liability period?
Termination does not mean that the contract ceases to exist for all purposes, any rights already accrued by the parties remain unless the termination provisions state otherwise. So in your scenario the Contractor will remain responsible for any Defects in completed work for the next 6 months.
Your question was:
NEC ECC: If the Contractor terminates the contract under reason R16 what are the obligations of the Contractor to the Employer with regard to the defects liability period
May 21, 2018
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This is correct. Although your original question didn't state it I assumed that the works are complete and that you have a completion certificate from the PM that triggered the start of the 52 week liability period for defects. Therefore the Employer had already accrued the right to have you return to site to correct defects for 52 weeks, and if you fail to do so to arrange for others to do it, and recover the cost from you.
Had the termination occurred before completion the outcome would have been different and potentially more ambiguous.
Jul 2, 2018
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