NEC3 - ECS Option A.
We are a Contractor and have a Subcontractor who has been employed to install a specialist distribution machine. Without it the clients warehouse doesn’t perform properly.
We have had a number of issues with the machinery and more than once had to pay monies we don’t agree with to get the machinery handed over.
We are now at the last knockings, the only thing keeping us on site is the final handover of the machinery, that isn’t working as it should. We can still achieve completion with the submission of the O&Ms as the last pieces are being classed as defects. The client isn’t happy as they want their warehouse working to full capacity and are taking Delay Damages from us every day.
The Subcontractor knows that we cannot achieve completion without their O&Ms and has openly emailed us saying they will not send us the O&Ms until we pay them what they want.
The monies they are after are the Compensation Events that we haven’t yet accepted and believe are inflated and sometimes fabricated. They have also stated they will not accept any contra-charges whatsoever on the account despite their lack of progress, missing programme, etc.
Other than damages which are minimal on this subcontract, have they breached the NEC contract by doing this? Surely what they are doing is blackmail and against the law?