Claiming increased materials costs

Hi,

We are a subcontractor under a bespoke NEC3 ECS contract. Brexit and COVID has created massive uncertainty in our supply chains and we’ve seen price increases of up to 40% on some items which is above your normal tolerance thresholds for supply chain increases and enough to put people out of business. We’ve had preliminary discussions with the client who are open to hearing our case for cost recovery from the client. How would most of you contractually handle this one? via 60.1.(19) perhaps or send our costs through and the main contractor relies on their Z clauses in their head contract as they have clauses that give them grounds for recovery?

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Leroy,

Can you advise which Main Option NEC3 ECS you are operating under and the Optional X Clauses?

Hi,

Sorry for the delay on this. We are under an option A with X2, X5, X7, X16, X18

Thanks

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