NEC ECS: Option A - lost plant on site

A Subcontractor working on an NEC3 Option A was instruction via a PMI to rent a piece of lifting equipment, part of the instruction included the need for others to be able to use this equipment periodically. The lifting equipment was lent to others within the working areas and subsequently lost. The subcontractor has notified a compensation event claiming clause 60.1.16. We believe this falls under a “contractors risks” and is something that should be covered by Cl.84.2 - Contractors insurances. Who is correct ?

I assume from the reference to 84.2, that you are under NEC3.

Regardless, I am not sure why the Subcontractor is claiming under 60.1 (16). It should, if anything, be 60.1(14) for an Employer’s or Contractor’s risk (under NEC3) / Client or Contractor’s liability (under NEC4) both of which bring clause 80.1 into play.

In the amended NEC3 ECS, the only reference in 80.1 to the Employer or Contractor taking risk/liability for Equipment is in the second to last bullet point, but this is only after termination. So assuming, the subcontract has not been terminated you are right.

Under NEC4, the same logic applies, except it is the third to last bullet point AND under clause 81 for Subcontractor’s liabilities, it is explicitly mentioned that this is a Subcontractor liability in the second bullet.