If the Employer terminates a contract, we as the Contractor (NEC3 option E) have an affected Sub-contractor, who’s sub-contract will need to be cancelled. What is the sub-contractor eligable to claim for, assuming that they have carried out no works to date, but have suffered a loss of potential turnover etc? (The Sub-contractor is working to a fixed price activity schedule on an NEC3 Supply Contract).
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Assuming the Supplier is not in any way at fault, then the reason for termination would be “A reason other than R1 - R21” in the table in clause 90.2 of the Supply Contract. The Supplier then gets paid amounts A1 and A2 where :
A1 is the amount due as assessed for normal payments plus the amount of expenditure the Supplier has already committed to spending and can’t get back, any retention and un-reimbursed advanced payment (see clause 93.1); and
A2 is the forecast cost of removing the equipement (see clause 93.2).
As the main Contractor, under otion E, you are paid what you have to pay a Subcontractor - which would presumably include this Supplier - at cost plus Fee.