Main Contractors has issued CE against Sub-Contractor. X7 selected in contract data, note added to it " there are no delay damages for delayed completion". How do we stand with this?
Taking your points raised one at a time :
To raise a CE it has to be one of those listed in clause 60.1 or in the individual options.
To be “raised against” the Subcontractor, I presume you mean to deduct a sum from the Prices. You can only do this if it stated in the contract that you reduce the Prices.
In all options, this is for a change to the Works Information under clause 60.1 (1) (de-scoping &/or reducing quality) or changing an assumption upon which a previous quotation for a compensation event was based (clause 60.1(17)).
If you are under Bill of Quantities options B or D , then a compensation event under 60.4 (reduced quantities) or 60.6 (correction of mistakes or ambiguities in the BoQ or between it and other docs) can also reduce the Prices.
There are few other reasons in some secondary options.
So if the Contractor is going to rise a CE against you, it has to be one of these CEs.
On “X7 selected in contract data, note added to it " there are no delay damages for delayed completion”." This very much as if it is specific statement setting delay damages at zero. I cannot think of any other reasonable interpretation. Consequently, iIt seems high unlikely that they will be able to justify to an Adjudicator or courts any deduction of delay damages as result of late Completion.
I agree with Jon on the last point that there will be no damages accruing for a late finish. This does not just mean Delay Damages but any other delay related damage that might have been suffered as liquidated damages of this type are generally a complete remedy.
Thanks for your response, so in a nutshell could we advise them that they cannot charge us any delay costs with this note against X7
Thanks for that Jon, much appreciated.
From what you have said, in a nutshell, ‘Yes’.