We are currently in the process of final accounting an NEC Option A Subcontract.
The client (Subcontractor) has issued us (Sub-subcontractor) with a list of contra charges (some charges are acceptable where we have used their labour however the majority we dispute) and liquidated damages under clauses Z 54 (new clause added with words below) and main x clauses X2, X5 and X7.
“The Subcontractor shall have the right to set off any sums due or becoming due to the Sub-subcontractor under the terms and conditions of this Sub-subcontract any and all amounts owed to it by the Sub-subcontractor whether or not such amounts owed are due under the terms of this Sub-subcontract or any other contract or arrangement between the Subcontractor and the Sub-subcontractor”
My question is, can they levy both sets of charges against us or are they only able to apply for one set of charges i.e. either the contra charges of LD’s - not both? Is there a contract clause that we could use to respond to this?