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NEC ECC: What if a Subcontractor or their terms are NOT issued for acceptance - what is the risk to the Contractor?
In line with section 26 I understand that as a Contractor I am obliged to issue Subcontractors for acceptance prior to placing their order, and also their terms and conditions if it is not a back to back NEC subcontract with the same amendments passed down.
But what if I don’t? What in reality is the risk to the contractor, particularly if the Subcontractor has already now started on site and everyone can see they are on site working?
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Depends what option you are under :
- under options A and B, very little if any additional risk apart from the Project Manager not having the chance today "I am aware that they did not perform that well on another project" which might give you second thoughts about using them. Having said that, the PM could instruct you to stop until he or she has accepted them which, while a compensation event, would arise from your fault so zero assessment;
- under options C to F, as above and any ADDITIONAL cost incurred as a result would be a Disallowed Cost if you haven't followed a procurement procedure in the Works Information. There may be other reasons as well within the Disallowed Cost clauses.
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