This is a ECC Option A contract. A construction project is nearing Completion. The programne submitted by the Contractor recently shows planned Completion after the Completion Date. As stated in contract, delay damages is £35,000/day.
Assuming the Contractor is late by 6 days, at what time are the damages retained? Any discretion does the Project Manager have?
Hi, firstly the PM has no discretion as to whether delay damages are deducted or not, clause 10.1 the PM must act as stated in the contract and clause X7.1 states the Contractor pays them at the rate stated in the Contract Data.
With regards to when the damages are retained, the answer is also in X7.1, after the Contractor has past the Completion Date, so the PM will assess it in the amount due in the payment certificate following the Completion Date and continue to do so until Completion.