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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: X18 - Indirect or Consequential Losses - What is a suitable level to cap this at?

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This is a commercial decision for your client and you to negotiate in conjunction with your insurers. There are no hard and fast rules and what is reasonable will depend on a number of factors such as (1) what your client's business is, (2) what harm you could cause to their business by carrying out the works, and (3) the extent of your scope and responsibilities under the contract.

Delay damages are a separate remedy specifically for the contractor's breach of contract in failing to complete the works by the completion date.

It is common practice to see both X7 and X18 feature in contracts, it's for each of the parties to understand the risk, consider how this may affect their business, and negotiate accordingly.

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