NEC ECC: Employer's Liability for Sub-Contractor's Cost where Contractor has gone into Administration

NEC3 and NEC4 Contracts Payment
1

We are acting as Project Manager for a Local Authority Client who has appointed a Contractor under the ECSC.

The works are largely complete and the Local Authority has made the necessary payments to the Contractor.

Unfortunately, the Contractor has just gone into Administration and it appears has not made some payments to a Sub-Contractor for work they have already completed.

We do not believe the Client is under any obligations to pay for the works again and make additional payments directly to the Sub-Contractor.

Is this correct or does anyone have a different view?

2

The obvious answer is that you do not as you are not and never were in contract with the Subcontractor.

Years ago, I had a similar question to answer when Wrekin went bankrupt and the supplier did not get anything.