NEC3 ECC Option C, construction phase of the project. An event stopped all works for approximately 10 months before the works resumed. It was unclear for how long the stand down period would last when the event started to occur through the first period of the event (Compensation Event 1). On the 4th month of the event, following realisation that works could not resume for another 4 months, the first Compensation Event was capped, and a second Compensation Event (Compensation Event 2) was raised, including a provisional date to resume production and introducing the requirement for a 5 weeks’ notice confirming this and instructing re-mobilisation of resources required for the works. Event is the responsibility of the Contractor.
During the 10 month delay, the Subcontractor was asked to mitigate costs to a minimum, but not demobilise from site completely. The Subcontractor kept the site setup, off-hired all possible equipment and, where possible moved their directly employed to other projects to mitigate the projects costs.
The Subcontractor was not able to utilise the directly employed labour on other projects without additional expenditure for the full period of delay, thus having towards the end of the delay period (under Compensation Event 2), served and EWN notifying mobilisation of directly employed labour, approx. 20 days before planned mobilisation date (responded by the contractor in 6 days highlighting this cost would be disallowed). This was finally remobilised without any works available, notice agreed under CE2 and contractually required supervision.
Further CE’s have been raised (3 and 4) to cope with further delays in site access.
Are the costs incurred with the labour, mobilised without the Contractor’s 5 weeks’ notice and knowing that no works would be available, recoverable under the Option C?
Thank you for your time in advance.