Application of X1.4 if Contractor is past Completion Date

NEC4 Option C. We have a Contractor that is now in delay and is completing their works past the Contract’s Completion Date. Should we still be applying an X1.4 increase to the total of prices after each PM assessment of the Price of Work Done to Date? The contract tells me we should, but this feels somewhat counter-intuitive and somewhat “rewards” the Contractor for delivering their work much later than they were contracted to.

Yes, you should keep applying X1.

Remember - in Option C, you don’t pay the amounts by which the Prices are adjusted. What you do is increase the total of the Prices.

For right or wrong, that is the risk allocation that was selected, so the PM’s job is just to implement that.

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