NEC ECC: Option A - COVID-19 Post Completion Date LAD's

COVID-19 has had an impact on the Contractor’s ability to carry out the Works. However, the Contractor is already in delay as the Completion Date has passed (albeit there are outstanding CE’s under dispute which could also influence the Completion Date).

Planned Completion Date is some months away, but has been worsened by the impact of COVID-19. An Early Warning was issued and the Contractor asked the PM to issue an instruction as to how to deal with a prevention event under Clause 19.1 but PM refused to issue any instruction. An NCE was issued by the Contractor, stating Clause 60.1(19) which has been rejected.

Realistically it would seem the only recourse is adjudication in this instance. Situation aside, what is the stance under this Contract regarding delays which are the Employer’s risk which occur whilst the Contractor is already in delay?

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See this link - https://www.linkedin.com/pulse/who-pays-covid-19-contract-risk-allocation-under-nec-contracts-jon/ for a article by yours truly. The long and short of it is that, under NEC3 (the situation is different under NEC4 because of slightly different wording in clause 60.1(19) - that in your circumstances it is probably not a compensation event.