We are a contractor with a subcontractor engaged under an NEC4 Engineering and Construction Subcontract (ECS) Option B (priced subcontract with bill of quantities). We have deducted costs for correcting defects which the subcontractor should have corrected but refused to. Clause 46.1 says we can deduct the costs of having to correct the defects ourselves. Can we add overhead and profit to our costs, like a fee?
On the assumption that you gave the subcontractor access to correct the defect and it failed do so within the relevant defect correction period, the issue will be dealt with under clause 46.1. Clause 46.1 says you will be able to recover from the subcontractor the cost you have or will incur in getting others to correct the defect. This includes your costs in arranging for others to do the subcontractor’s work, any attendance provided and any overheads.
However, profit will not be recoverable as this is not a cost.