NEC3 ECS - Delay Damages - recovering Contractors costs from Subcontractor

The scenario is:

Main contract between Employer and principal Contractor = Delay Damages defined at £795.00 per day.

Subcontract between principal Contractor and Subcontractor = Delay Damaged also defined at £795.00 per day.

Am I correct in saying that in this scenario the delay damages in the subcontract have been defined. Therefore should the instance occur where the Employer makes a claim against the Contractor for delay damages due to a fault by the subcontractor, the Contractor can only claim a maximum of £795.00 per day from the subcontractor and does not have the ability to also claim for his own loss and expense in addition to this?

1 Like

Yes. If your Subcontractor is later than their Completion Date then you can only charge them £795/day as per their contract. If your Employer is charging you £795/day for being late, then any other costs that you are incurring would be your problem - there is no where else in the Subcontract that allows you to recover additional cost that you the Contractor are incurring for being late.