NEC4 Option C. What happens if a Contractor simply does not submit the Subcontract documents for PM acceptance in-line with the contract, but continues to use them without PM acceptance having been achieved?
Just bumping this one as still an issue for us, does anyone know the answer? Thanks.
This is one of those challenging situations where there is no direct ‘enforcement’ provision linked to non-compliance.
The Disallowed Cost clauses are often amended to address this matter and it is common for there to be an additional reason which relates to the Defined Cost of a Subcontractor that has not been submitted for acceptance, or accepted by the PM.
In the absence of the above there are limited options, including termination (quite drastic) where this applies at clause 91.2 (reason R13).
There may be stated requirements in the Scope that apply to procurement and appointment of a Subcontractor. The difficulty again is whether there are any corresponding rights of enforcement, possibly in relation to Disallowed Cost.
1 Like
Just to build on Andrew’s reply, given it is an Option C you might want to consider asking for the information as part of the records required to demonstrate Define Cost is in accordance with the subcontract. I would advise the Contractor why first.
2 Likes