Demonstration of liquidated damages

NEC3 and NEC4 Contracts
1

In relation to the NEC3 option B Subcontract. We have X7 included in the subcontract, however, it is safe to say the subcontractor has fell short of the mark in relation to submitting any form of programme and have surpassed their contract completion date by quite a way. Granted, there has been change and CE’s implemented however, due to the lack of programmes submitted and not a single impact programme has been issued, they have not been granted any additional time for said CE’s. I am looking to levy delay damages however am unsure on how I would show their delay. Is it a requirement to prove the delay potentially in the form of an as built, but as stated I don’t believe we had ever received a clause 31 programme from the subcontractor. How do you think I would display the subcontractors delay in a fair and reasonable way in order to levy damages against them?

Thanks,

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2

It sounds as though the Contract has not been administered correctly on a number of fronts. Because of this, I suggest both parties come together and agree a final position with regards to programme.

Presumably, a programme was stated in the Contract Data which you can use a baseline to record the Subcontractor’s progress to date, if the works aren’t completed, you should be able forecast to a Completion Date. Once this has been agreed, you should be able to include all Implemented Compensation Events, which will set the Completion Dates (s) where you can then determine the amount of X7 delay damages are levied.

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