We are the client on an NEC4 Engineering and Construction Contract (ECC) Option F (management contract). Is the contractor entitled to be paid for correcting defects before the completion date? If so, please confirm this is a defined cost.
In an ECC Option F, the price for work done to date is calculated as set out in clause 11.2(29) and assessed using defined cost plus fee.
Defined cost is defined in clause 11.2(24) and relates to payments due to subcontractors for work which is subcontracted. Payment for work done by the contractor is based on the prices in contract data part two. The prices included in contract data part two will be rates or lump sums, and payable for the activities as described in contract data part two.
If, under the terms of a subcontract, the contractor has to pay a subcontractor the cost of correcting defects, then this cost will be recoverable as payments due to subcontractors.