Hi. I’m looking for some guidance on a current issue. We (Employer) are engaged on an Option E contact, part of which is for the Contractor to carry out ground investigation works. There has been a failure of some plant on site which has resulted in an environmental issue, and a lengthy period of standing time for resources allocated to the GI works. The supplier responsible for the failure is a Subcontractor of the Contractor.
Is there any avenue in which the Employer can disallow costs for the period of standing time? The Contractor wishes to deal with this as a Defect, and as such the costs of correcting the Defect would be payable as it is before Completion.
@stevebrownassociates Is this something you would be able to advise on?
Paul, when you say a failure of ‘plant’ do you mean ‘Plant’ as in the definition of Plant and Materials or do you mean Equipment 11.2(9), i.e. the Contractor’s plant?
Also, how is the environmental issue covered under the contract, is it an Employer’s risk or Contractor’s?
Do you have the details of the subcontract under which the failure occurred?
Clause E11.2(26) authorises the PM to disallow, if it falls under any of those items it can be disallowed otherwise it is an Employer’s risk.
Happy discuss.
Hi. Thanks for your response but that matter has now been resolved and the Contractor no longer wishes to treat this as a Defect.