Managing Time in JCT and NEC

Question 1

What are the main stages of JCT?

Answer 1

Date of Possession
Regularly and Diligently carry out the Works
Completion Date

Question 2

What are the main stages of NEC?

Answer 2

Access Date (Starting Date)
Plan programme of work to measure progress
Completion Date

Question 3

What does time is at large mean?

What does time is of the essence mean?

Answer 3

Time is at large
When the Contractor can finish the Works with no deadline attached, ASLONG as it is within a reasonable time.

Time is of the essence
When the Client needs the project the finish at it’s original completion date. Variations and/or an acceleration programme is suggested to achieve the original Completion date.

Question 4

What are the 4 possible completion stages in JCT?

Answer 4

Practical Completion
Sectional Completion
Partial Possession
Completion of Making Good

Question 5

What does practical completion mean?

Answer 5

Completion for all practical purposes based upon the clients requirements.

Question 6

What are the effect of practical completion?

Answer 6

1. Rectification Period begins
2. The client is responsible for the insurance
3. 6 months defect liability period occurs
4. End of contractor’s liability to Liquidated
   Damages;
5. Start of the 6 month period for preparation of
   final accounts
6. Half the Retention money is released;

Question 7

What does sectional completion mean?

Answer 7

Part of the Works have been complete and the Client gains possession of the Works.

Question 8

What is partial possession in JCT?

Answer 8

Allows the client, to take possession of part(s) of

the works WITH consent of the contractor

Question 9

What is the Rectification period?

Answer 9

Period within which contractor is liable to make good

any defects

Question 10

What is a snagging list?

Answer 10

A list the A/CA (JCT) or PM/Supervisor/Supervisors Assistant* (NEC) issues to provide a list of the defects found

Question 11

What is a key date?

Answer 11

A date by which work is to meet the condition stated in the contract data.

Question 12

What are time risk allowances?

Answer 12

Time risk allowances are a required part of an ECC project programme (clause 31.2).

If a contractor identifies an activity float in the programme as a “time risk allowance”, that is protected in the same way as the terminal float.

In other words, “the contractor owns the time risk allowances”.

Question 13

What does Takeover mean in NEC?

Answer 13

Take over is about who is using the building (works) But, once completion is certified, the employer has to take them over within 2 weeks (unless the contract data says differently) whether they are actually using them or not.

The project manager certifies the date of the take over.

Question 14

What is the effect of Completion in NEC?

Answer 14

Completion Date is a fixed milestone and is the trigger point for which delay damages would be applicable

Question 15

What is Planned Completion and what is the effect of it?

Answer 15

When the contractor “plans” to finish and in simple terms is linked to the contractor’s last planned site
activity (activities required to meet the Completion).

The planned completion date can be adjusted however it has no effect on the Completion Date

Question 16

What is the early warning clause?

Answer 16

An early warning is an event or potential risk which may effect the project in regards to:

Cost
Money
Quality

Question 17

Explain the following JCT terms:

Adjustment of time
Delay in completion
Rectification period
Delay Damages (NEC)

What are these terms called in NEC?

Answer 17

1. Adjustment of time
   Amending the completion date due to relevant events.

2.Delay in completion
If in the opinion of the Architect the works have not reached practical completion at the completion dates

3.Rectification period - Defect Correction Period
Amending/Completing any minor works

4.Delay Damages (NEC) - Liquidated Damages (JCT)
Compensation to the client due to potentially loss profits which could have been made.

Question 18

When is Sectional Completion provided?

Answer 18

Applied if the intention of the client is to complete project in phases or sections

Question 19

What impact does the Sectional Completion have on the Contract in comparison to Practical Completion.

Answer 19

There is separate timetable for each section of the works

Such intermediate dates and relevant sections are stated in the contract particulars

Sectional Completion Certificate have same effects as Practical Completion

Question 20

Can the client gain possession of part of the works even if there are no provisions in the contract?

Answer 20

If no provisions are made for Sectional Completion then contractor has right to occupy whole site until Practical Completion

Question 21

What effect does Partial Possession have?

Answer 21

Same as Practical Completion

Question 22

Is a certificate issued in possession?

Answer 22

No issue of certificate by Architect

A written statement prepared by Architect to
identify part of works being possessed ( this statement is called relevant part)

Question 23

What is the effect of Delay in Damages?

Answer 23

An non-completion certificate is issued.

Enables the Liquidated Damages term and conditions to be used.

Question 24

What must the client serve to get liquidated damages?

Answer 24

Notice of Liquidated Damages

Withholding Notice

Question 25

What if there are no defects found by the Client’s party?

Answer 25

The rectification period is 6 months IN JCT ONLY

Question 26

What if the Contractor fails to make good of the defects?

Answer 26

contractor fails to make good then client has right

to employ third party and surcharge contractor.

Question 27

When is the Final Certificate Issued?

Answer 27

Issued within 2 months of the last of the following:

1. The end of the Rectification Period;
2. The date of Issue of Certificate of Making
   Good;
3. The date when a copy of final accounts is sent
   to contractor

Question 28

What are unliquidated damages?

Answer 28

Unliquidated damages are damages that are payable for a breach, the exact amount of which has not been pre-agreed.

The sum to be paid as compensation is said to be ‘at large’ and is determined after the breach occurs by a court

Question 29

What is the difference between a float and time risk allowance?

Answer 29

Overall: Time risk allowances are used for the activities which have a great risk of taking longer than the intended. TRI float CANNOT be utilised for Compensation Events.

Float is additional time included in the programme schedule for any events/matter INCLUDING Compensation Events.

Time risk allowances are for periods/events which are for the contractor’s risk and which further have a great chance of occurring.

Free float (Time Risk Allowances) is owned by the contractor and cannot be used by the employer to mitigate the effect of a compensation event.

“float” records a period additional to what is required within the ordinary programme.

Under usual conditions, it will record additional time on a programme to accommodate an impact of a compensation event in order to reduce planned completion and or to avoid delays thereto. This “float” is available for the project so the speak, and either the employer or the contractor, can use it in an endeavor to mitigate a delay caused by a compensation event and or other event having a negative influence on the programme.

Question 30

Can the PM tell the Contractor to stop the works or not to start yet?

Answer 30

Yes. Only the PM