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NEC ECC: Risks associated with the introduction of a nominated sub-contractor
I am aware that there is no provision in NEC3 ECC for nominated sub-contractors. However, if a compensation event is notified to introduce a nominated sub-contractor into the Works Information, is the Contractor still responsible for Providing the Works as if he had not sub-contracted (Clause 26.1) and as such carry all risks associated with the conditions of the sub-contract not aligning with the main conditions of contract or does the Employer carry these risks?
Typical examples might be:
a) Defects Date in the sub-contract is earlier that the Defects Date in the main contract.
b) There are no delay damages in the sub-contract
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Simple answer is yes, so you have to price accordingly in terms of risk within your CE quotation.
If you put a lot of risk, this may give rise to the PM giving assumptions to base the quotation upon that if they do not perform in a way that meets that assumption that it could give rise to a further compensation event and hence not the Contractor risk. Unfortunately however PM's are not always willing to commit to such assumptions leaving arguments as to the value of the CE.
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