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Public Works Contract (similar to NEC) - Client appointing subcontractors to carry out works that are within our works package.

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Sorry this is actually about a Public Works contract which is broadly similar to NEC within the Republic of Ireland.

We are currently working for a client who is continually cherry picking through the contract-the project has greatly changed for what we have tendered- The Architect continually changes items- when we submit our additional costs  they are always too expensive- they are now going to the point of appointing general labour to carry out sections of the works and just tell them to proceed with the work, commonly without  consulting with us, and totally disregarding subcontractor appointments/H&S/ Insurances etc. When I explain that we are entitled to MC profit etc they just say "well we will pay them direct".

What course of action is open to me?

Any help would be greatly appreciated.
asked Aug 12, 2018 in NEC3 and NEC4 Contracts by dsmccrory (290 points)  

1 Answer

+1 vote
You are entitled to carry out and complete all of the works. Variation provisions usually permit the architect / engineer / project manager to vary or omit work, but not if the intent is to give it to another contractor. There are a number of authorities that state that unless there are specific provisions that permit the omission of work in order to give it to another contractor or for them to do it themselves, they are in breach of contract and you are entitled to recover the profit you would have made from those works.
answered Aug 14, 2018 by Neil Earnshaw Panel Member (23,220 points)