Does anyone know why, within the EC Short Contract there is no compensation event for Client’s Liabilities equivalent to Clause 60.1(14) under the ECC?
In the absence of this CE, how is the effect of a Client’s Liability event dealt with?
Matthew, under NEC3 ECSC there is a compensation event 60.1(14) for loss or damage to the works, Plant and Materials which is not the fault of the Contractor or could not have been prevented by any reasonable action of the Contractor, does this cover what you’re looking for? Clause 81 identifies the indemnity provided by the Employer for a fault arising from someone employed by it who is not the Contractor. Clause 82 and the Contract Data set out the insurances to be provided.
If the event is if it is not covered by one of the CE’s the Contractor is not compensated, it’s worth remembering that the Short Contract is intended to be used with contracts which impose only low risks on both the Employer and the Contractor.
2 Likes
Thanks, Steve - I should have been clearer that I was referring to NEC4 ECSC.
The NEC3 ECSC clause you mention would cover the eventuality that I am considering, however it doesn’t appear in the NEC4 version.
It seems strange that neither that clause nor the Client’s Liability CE from NEC4 ECC has been taken forward into the NEC4 ECSC.
Hi Matthew, I should have covered both. You are absolutely correct the NEC4 ECSC does not identify a compensation event in the event a Client liability occurs, instead it uses clause 82.2 which allows the Contractor to recover cost resulting from an event which is a Client liability.
1 Like
Thanks, Steve - effectively a CE by the back door!