We are undertaking works for an Employer under an NEC3 ECC incorporating Main Option C.
We employed a supply chain partner under an NEC3 PSC Option A Contract to undertake design work included in our scope of the main contract.
We will be deducting Delay Damages from the Professional Service from the Completion Date for each day until Completion is achieved. Will this result in a reduction to Defined Cost under our Main Contract with the Employer or as Delay damages deducted from a Professional Services account are not referred to in clause 11.2 (23) as an item that should be deducted when determining Defined Cost, does this mean this would form part of the amount due to a Subcontractor i.e. Defined Cost.
Furthermore if a professional services’ works are critical does it follow that an Employer, in effect, over or double recovers costs where it recovers the subcontract damages through Defined Cost and also recovers delay damages under the main contract?