NEC3 Short Contract hitting cashflow credit limit

NEC3 and NEC4 Contracts
1

We took on a relatively small NEC3 short form sub-contract c/w an initially accepted payment schedule

Other phases of the build have now been added to the order as a compensation event

But we are now 4 or 5 times over the original order and may be struggling to cash flow and/or the DBS credit check doesn’t justify the financial credit risk!

Concept of NEC3 is we accept the PM instruction as the C/E; but ultimately this is becoming a significant financial risk - what are our options please?

2

@jon.milner I don’t see a contractual option of “not accepting the instruction”, as long as it is in accordance with the Contract and the Employer (assuming the Employer has notified its delegation to the PM) is changing the WI by giving it.

Therefore, in my view, the question that arises is whether and what extent the additional scope is relevant to the WI.