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).
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.