NEC4 Option A Subcontract unamended
No inclusion of X7
X18 at 100% of the Subcontract value
Main Contractor requests acceleration of the Subcontractors completion date. If the Price was agreed and completion date brought forward what would be cost impactions if any of the Subcontractor not achieving the new completion date?
Thanks in advance
If X7 is not included, then a failure to meet the new Completion Date would attract general damages / unliquidated damages. The fact that the Completion Date was moved via the acceleration mechanism is irrelevant.
General damages include (1) any direct losses and/or losses that arise as a natural consequence of the breach; or (2) other special losses that were within the reasonable contemplation of the parties at the time they enter into the contract.
The direct losses at point (1) above would typically include the likes of the main contractor having to maintain hoarding on the site, welfare, prelims etc.
The special losses at point (2) above would typically include delay damages the main contractor has signed up to under its main contract - assuming that the Subcontractor missing the new Completion Date causes the main contractor to suffer delay damages. These can only be passed on to the Subcontractor if the Subcontractor was made aware of them before entering into the subcontract. Always worth checking this!
In terms of X18, assuming you are talking about the “total liability” provision under X18.5, the Subcontractor’s liability for general damages would be limited to 100% of the Prices. These are not excluded matters like liquidated damages under X7 would be.