For NEC 3 Contract Option F: in case the Contractor executes directly the works (after client approval) I understand that the Contractor is entitled to be paid for correcting defects before the Completion Date (as long as the works are defined cost), and meet the procedures of how the works are provided. We have two scenarios: 1) in some sites, we did not subcontract the works of correcting defects (we corrected them directly with our personnel) , and 2) in other sites, we did subcontract the works for correcting defects. The PM does not approve the cost of correcting a defect as reimbulsable cost in any scenario because acoording to him, the Contractor (we) has to pay the costs of correcting a defect because their origin are due to a bad design (we also performed the design under the Option F).
Looking forward your opinions.