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Section 8Risks and Insurance

Clause 82.3

Proportional Reduction for Contributory Liability

Purpose

The right of a Party to recover costs is reduced if an event for which it was liable contributed to the costs. The reduction is proportional, taking into account each Party's responsibilities.

Practical Application

If both Parties contributed to the same loss or damage, cost recovery is apportioned. The reduction reflects each Party's degree of responsibility for the event.

Common Pitfalls

Apportionment can be contentious. The PM assesses the proportional reduction. The Contractor should maintain evidence to support its position that the contributing event was not its fault.

Related Clauses

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.