NEC3 ECSC; Payment on termination

I am QS on an NEC3 ECSC project. A few months ago the Contractor terminated his obligations to Provide the Works under Reason 7 of clause 90.4. I am now tasked with assessing the amount due on termination under clause 92.1. The Project Manager has asked me to retain monies from the amount due for the cost of the Employer having uncorrected Defects corrected by others - however I do not believe that the Defects were notified by the Employer to the Contractor. The Project Manager has confirmed that correspondence was issued from him (the PM) to the Contractor regarding the Defects, however the Employer did not delegate any actions to the Project Manager under clause 14.4, and as such the obligation to notify Defects is that of the Employer’s. It would be my understanding that as the Employer has not notified the Defects monies cannot be retained from the amount due to the Contractor. Would you agree? Thank you.

1 Like