NEC ECC: Risks associated with the introduction of a nominated sub-contractor

NEC3 and NEC4 Contracts General
1

I am aware that there is no provision in NEC3 ECC for nominated sub-contractors. However, if a compensation event is notified to introduce a nominated sub-contractor into the Works Information, is the Contractor still responsible for Providing the Works as if he had not sub-contracted (Clause 26.1) and as such carry all risks associated with the conditions of the sub-contract not aligning with the main conditions of contract or does the Employer carry these risks?

Typical examples might be:

a) Defects Date in the sub-contract is earlier that the Defects Date in the main contract.
b) There are no delay damages in the sub-contract

2

Simple answer is yes, so you have to price accordingly in terms of risk within your CE quotation.

If you put a lot of risk, this may give rise to the PM giving assumptions to base the quotation upon that if they do not perform in a way that meets that assumption that it could give rise to a further compensation event and hence not the Contractor risk. Unfortunately however PM’s are not always willing to commit to such assumptions leaving arguments as to the value of the CE.