# Stopping payment on a target contract: Option C

**URL:** <https://reachback.builtintelligence.com/t/stopping-payment-on-a-target-contract-option-c/18802>\
**Category:** NEC3 and NEC4 Contracts\
**Created:** [7 October 2022 08:17 UTC](https://reachback.builtintelligence.com/t/stopping-payment-on-a-target-contract-option-c/18802 "2022-10-07T08:17:15Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![engineering](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/engineering/32/105_2.png) [@engineering](https://reachback.builtintelligence.com/u/engineering)\
**Post date:** [7 October 2022 08:17 UTC](https://reachback.builtintelligence.com/t/stopping-payment-on-a-target-contract-option-c/18802/1 "2022-10-07T08:17:16Z")

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I have recently read the below statement:

" It is common when using the NEC form of target cost contract for Employers to cease payment to contractors if the target cost is exceeded by a stated percentage."

Surely this is fundamentally wrong under Cl.10.1 and Cl.53.1. The Employer/PM should pay all amounts due and recover any amounts due back via other methods (i.e. retention).

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**Author:** ![andy.thompson](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/andy.thompson/32/64_2.png) [@andy.thompson](https://reachback.builtintelligence.com/u/andy.thompson)\
**Post date:** [7 October 2022 11:01 UTC](https://reachback.builtintelligence.com/t/stopping-payment-on-a-target-contract-option-c/18802/2 "2022-10-07T11:01:01Z")

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In an un-amended contract, you are correct.

However, the situation you are describing is a reasonably commonplace amendment. A suggested edit to your statement, in bold italics.

“It is common when using the NEC form of target cost contract for Employers _ **to amend the Contract** _ to cease payment to contractors if the target cost is exceeded by a stated percentage.”

I could agree with that.

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<div class="post-metadata">

**Author:** ![engineering](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/engineering/32/105_2.png) [@engineering](https://reachback.builtintelligence.com/u/engineering)\
**Post date:** [7 October 2022 11:46 UTC](https://reachback.builtintelligence.com/t/stopping-payment-on-a-target-contract-option-c/18802/3 "2022-10-07T11:46:11Z")

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Thanks, nice clear reply Andy,
