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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: Option E - Defined Cost (Delay)

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Yes the additional costs paid to the Subcontactor can be recovered as Defined Cost from the Employer provided the subcontract compensation event is valid (sounds like a clause 60.1(3) for the documentation and a 60.1(5) for the approval) and that it has been assessed correctly under clause 63. If either of these tests is failed then you risk having some or all of the cost disallowed as it could be argued that the cost "should not have been paid to a Subcontractor ... in accordance with his contract" - clause 11.2(25) second bullet point. There could be a similar outcome if you did not give an early warning and should have - third bullet point, same clause.

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