Background: Option C contract each project is a CE, each with sectional completion.
Project (CE) value was agreed with client and an approx 2 1/2 month duration into project before project was stopped and withdrawn.
On agreement of CE (project) the work was issued to our sub-contractor as an Option A contract, which would require a number of items of specialist plant, with an agreed start and finish date.
Our client then required some additional surveys done before works could proceed and we issued a EWN advising this could delay time and the risk of extra cost.
As we had a completion date that the client needed us to meet, we advised our sub-contractor to stop but advised this should be only a short delay.
Meetings were held with the client to discuss the delay which at the initial time was expected to be days and turned into weeks. However, neither us or the client talked around any costs or how to mitigate them.
Eventually the job was pulled and we have been requested to put costs to date in. We then had a claim from our sub-contractor for the plant he had stood waiting to start. We had not asked them to hold it but they were aware that we need a quick start, so we agreed in principle that we would except 50% charge as long as the client agreed.
As we felt we had a good working relationship with our client and to avoid paying our sub- contractor and then getting it disallowed I approached them with the breakdown of charges, but have not applied for them on any application.
Initially the client showed interest and we agreed a format and date range, subject to some evidence being provided. (This we feel we have now done).
However, the client has now a new cost consultant, and his take is that we did not inform them we were holding the plant and the potential cost. In addition as we have not applied for it, it cannot be a defined cost and therefore can not be viewed as one. Should we apply for it now it will be disallowed.
My view is we issued an early warning, but were not asked to provide costs to mitigate them, we have made them aware of a defined cost but not applied as we wanted to work with the client before applying.
Should our client pay for these charges due to them stopping the CE (project)
I would really welcome some help here, with NEC3 clauses that I could use.
If viewed as disallowable I would like to understand why.
Thanks for any help provided.