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Answered: NEC ECC: Option C: Disallowed Cost regarding Subcontractor's works

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Assuming this is NEC3, which is referenced below.

It doesn't look as though the Disallowed Cost clause 11.2 (25) bullet point 2 is applicable as payment has been made in accordance with the Subcontract, as you state.

As the Works Information defines the scope of works then the Contractor is obliged to comply with this under clause 20.1.  Where this isn't the case, then the matter becomes a Defect under 11.2 (5).  The provisions for dealing with such Defects is under clauses 43, 44 and 45.  I suspect that the piles will be left insitu, therefore it should be dealt with under clause 44 as an accepted Defect, with the Contractor submitting a quotation for reduced Prices.  If this is not accepted by the PM, then the Contractor has little choice other than to remedy the Defect themselves, or accept the cost of correcting this by other people.

Possibly an expensive oversight on the Contractor's part !!

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