Payment under ECC Option E

NEC3 and NEC4 Contracts Payment
1

We are a Contractor working on an ECC Option E Contract.

Contract Data states rate for subcontract equipment hire and conditions of when the rate is to apply. Part way through the contract, we were notified by the Project Manager that one of the conditions had not been met.

The Subcontractor had performed in accordance with his contract, however, we had not fulfilled a condition stated in the main contract Contract Data (albeit a technicality and the subcontracted equipment had fulfilled its purpose).

The Subcontractor had been paid for work completed, which was included as Defined Cost in our application for payment. The Project Manager’s assessment disallowed a significant proportion, citing that we had not complied with the conditions identified in the Contract Data.

Are we entitled to reimbursement of payments to the Subcontractor or only when the conditions identified in the Contract Data have been met.

1 Like
2

To answer this fully and accurately, I need to know more the nature of conditions that have to be met.

In the meantime, I would note that the PM still has to certify something which may be the minimum that ‘on the balence of probability’ is justified by the Contractor’s accounts and records.

3

Agree with Jon’s comments - the PM has to certify something