NEC3 ECC: X18.4 Limitation of Liability

Subcontractor (SC) failed to meet his obligation in terms of providing the works as per agreed programme and clauses 20.1/30.3. despite numerous EW and meetings and communications. SC is under resourced and does not have all the manpower his programme is showing he needs, thus resulting in lack of progress, which will jeopardise meeting a key date. Contractor©, must meet otherwise C will incur damages (penalties upstream and standing time of other SC’s).

I have the same as the previous question in my x18.1 - but this event is a direct result of SC not remedying the situation. or will this be seen as consequential or indirect?

My X18.4 calls for 100% of the total of the prices. What is the C recourse in recovering damages incurred due to SC failure to provide the works? Project Manager does not wish to pull PB nor terminate due to limited duration left to complete the project.

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The loss which the Employer will suffer is the key here. Is THAT loss being directly or indirectly caused by the lateness of the subcontractor. The event is irrelevant it is the loss you need to focus on. That said, a straight forward delay related loss is likely to directly cause a loss in most situations.

There are quite a few ways a main contractor could make a recovery from a subcontractor ranging from making deductions from his account for amounts due from the SC to the MC (this will depend on the terms of the contract) through to taking legal action to recover the sum due. However, the starting point will be where is the right/obligation in the contract to complete and what, if anything, does the contract say the consequences are (ie is there an X7 for delay damages or similar)