Damage to Subcontractor's Equipment by the Contractor

NEC3 and NEC4 Contracts Risk and Insurance
1

A subcontractor has brought Equipment to site which is the responsibility of the Contractor to unload and is stated as so in the Works Information. During unloading the Contractor has damaged this Equipment. I would have initially said that this was a CE under Clause 60.1(14) (albeit damage during transit is not specifically said to be a Contractor risk). The only reference to damage to equipment referred to within the list of items under Clause 80.1 is in the context of damage post termination. This wouldn’t be a matter for the insurers as it is below the excess of the Contractor’s policy.

The question is, which is the correct categorisation of this CE?

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2

If the unloading of the Equipment is a facility to be provided by the Contractor stated in the Works Information then I suggest it is an implied term that the Contractor will not damage the Equipment whilst doing so. I would therefore suggest that 60.1(18) applies.

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3

BH56; as the responsibility was stated in the WI then I think it would be a CE under 60.1(14) arising under clause 80.1 4th bullet - a fault of the Contractor. It could also be a CE under 60.1(5) 2nd bullet but I think (14) or (18) would be the more likely.

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