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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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Answered: NEC ECC: Under option A is common law , is contract breach recovery better than capping with X17?

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The first thing to say is that Low Performance Damages are notoriously difficult to implement as more often than not the Contractor can point to one of the following :
- the input to a process is not exactly as stated in the Works Information, hence the out put is not stated;
- the Employer has changed something e.g. we want you to use component X rather than Y and here's a CE, but the C can then say well the reason the performance isn't achieved is because you said we had to use Y. If you stuck with X it would have been fine etc etc

Having said this, Contractors like the security of known damages and, as a result, may add the risk premium to your contract.

So it comes down to :
- how likely will we be actually be entitled to damages (it's easier if specified);
- how likely is it that we will actually be able to recover the damages off the Contractor (it's easier if it a contractual provision versus in general law)
- how much will the Contractor increase their Prices if we do / don't specify X17 and that will be partially dependent  at what level we specify them at..

This is ultimately a commercial decision.

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