Our Sub-subcontractor on site have installed defective work under Option A 1 day before Completion as per their first Accepted Programme as there was not a contract programme. The project is now on stop, how would we claim this time/cost back? If it is a defect is it still through X7 or could we raise a negative compensation event for our time?
Under X7 there is no specific value listed it is left blank after the standard CD P1 line with this below. Does this then limit the damages?
“Completion of all Sub subcontract Works 0.5% of the subcontract value per calendar week up to a maximum of 5% of the subcontract value.”
From your question it appears that the Defect is one that prevents the Contractor from using the subcontract works and therefore delays the subcontractor’s Completion (see clause 11.2(2) beyond the Completion Date.
That being the case then yes Option X7 applies and your recourse is 0.5% of the subcontract value (not a defined term so arguable if it is the tendered total of the Prices or final value) per week capped at 5% of the subcontract value (again not a defined term).
There are no such things as “contracharges”, and this would not be a compensation event.
Your only remedy would therefore be if this defect prevented certifying Completion and therefore delay damages at amount outlined in CD part 1 (or if you had identified them in CD 1 a Key Date then any cost incurred under clause 25.3).
Very poor both Parties have signed a contract without CD part 1 making it clear what the cost per day is for exceeding the Completion Date - all be it you seem to have amended wording that caps the liability. Have a look at your contract and see exactly what it says. If X7 had not been included at all then this outside the contract would mean undefined/unliquidated costs the Contractor could recover, but you would have to go through the courts to get them.