NEC ECS: What action to take when a subcontractors defect creates rework for another subcontractor

If a Subcontractor makes an error early on in a project and this leads to other items being installed incorrectly by another Subcontractor, what action is it appropriate to take against the first subcontractor?

For example: Subcontractor 1 installs a Electrical Panel and fits the cables at the panel end with labels. Subcontractor 2 installs their equipment and make the cable connections as per the labelled cables. If subcontractor 1 labelled the cables incorrectly and Subcontractor 2 has to re-run the cables and re-connect what action can the main Contractor take under an Option A contract?

Firstly you should have notified the Defect to Subcontractor 1 and advised them that the subcontract works would not be certified as Complete until the Defect is corrected which would usually leave them exposed to delay damages.

If Subcontractor 1 doesn’t correct the Defect then you have the right to assess the cost of having it corrected by other people e.g. Subcontractor 2 and Subcontractor 1 pays this amount.

Note clause 43.2 of the ECS states timescales for correcting Defects and clause 45.1 is the right to assess the cost of uncorrected Defects.

You should also check Z clauses as you may have additional rights here.