The contract is an NEC3 ECC Contract. The employer is currently reviewing subcontract tender options regarding the procurement of plant and equipment.
The employer has been presented with two options:
- The Contractor to purchase an element of equipment (a JCB)
- The Contractor to hire an element of equipment (a JCB)
The price for purchase is slightly lower than the option for hire.
The question has been raised, after the works are completed the employer does not wish to keep the piece of equipment, however the Contractor would like to keep the equipment. Under the Contract does the Employer have the right to sell back the equipment to the contractor for the risidual value of the equipment? Or would this warrant a new contract to deal with such an agreeement?