Working under an Option B Subcontract and the main Contractor has issued an instruction to carry out works on an ‘Emerging Cost plus fee’ basis. The main Contractor has queried the level of productivity being achieved, which has been identified as being attributed to various types of disruption events. If these have not been notified within the given timescales under clause 61.3 in the contract are these costs at risk of not being recoverable? Or as this is effectively Reimbursable is the Subcontractor simply due costs incurred plus fee?
The level of substantiation required to be provided by the Subcontractor will also invariably be impacted by the requirement to demonstrate ‘value for money’ should this be the case.