Frequently Asked Questions

I am the project manager on an ECC Option C contract where the price for work done to date exceeds the total of the prices by such an extent that the first payment after completion will be negative. Please advise if there are any provisions for, or references to, such a situation within the contract and if not, what advice can be given to the employer with respect to recovering such monies?
There is no provision to make allowance for any share the contractor has to pay to the employer before completion, in the same way is that there is no provision to make allowance for any share the employer has to pay to the contractor before completion.

If for any reason the total amount due reduces between certificates, then the project manager issues the certificate to that effect and the contractor has to pay the amount to the employer – see the third sentence of clause 51.1.

If the contractor refuses to pay the employer then, ultimately, the employer has the same remedy as the contractor has if the employer does not pay something it thinks is due, and that is to go to adjudication. If the money is repaid, the contractor will have to pay interest on the sum – see clause 51.3.

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