Time & Delay

Question 1

Main concepts of time and delay in NEC4

Answer 1

Time and money contractual definitions must reflect the agreement

Avoid time and money being at large

Question 2

Adversarial contracts (JCT SBC/Q) vs collaborative contracts (NEC4)

Answer 2

Adv. - contractor claims for loss and expense disputes around time

Collab. - looking ahead to avoid future problems, compensation events and advance payment look to minimise disputes

Question 3

What is a CE

Answer 3

Anything that affects the achievement of the completion date, key dates, the scope of works changing, design changing or the cost of the project changing is a CE

Therefore change becomes a CE

Question 4

What are the stated dates in NEC4

Answer 4

Contract date - when contract is executed

Starting date - when word should start; stated in CD part 1

Access date - when the client gives possession of the site to the contractor

Completion date - date for completion of the whole of the works as stated in CD part 1

Question 5

What is the completion date

Answer 5

The Completion Date is the completion date unless later changed in accordance with the contract

Question 6

What is a key date

Answer 6

Date by which work is to meet the condition stated

Similar to sectional completion in JCT

Question 7

What are time risk allowances

Answer 7

Allowances made within programmed activity durations

Question 8

How is float addressed in NEC4

Answer 8

Float can be used by either party to ensure completion before the Completion Date

Float is owned by whichever party uses it first

Question 9

Different elements of completion

Answer 9

Completion date (stated in CD)

Planned completion (stated in the current accepted programme)

Completion (when the PM certifies the works as being complete)

Take over (when the client begins to use the works)

Question 10

PM actions regarding time management

Answer 10

Instruct a change in Scope or key date

Certify date of completion

Instruct the contractor to update the programme

Instruct the contractor to submit an acceleration quotation

Question 11

Secondary clauses relating to time and delay

Answer 11

X6 bonus for early completion

X7 delay damages

Question 12

Who owns the programme in NEC4

Answer 12

The contractor

The PM certifies or rejects submitted programmes from the contractor

Question 13

Importance of submitting the first programme

Answer 13

If a contractor fails to submit a first programme, they will be deducted 25% of PWDD accrued until they submit a compliant programme

Question 14

How is acceleration addressed in NEC4

Answer 14

PM or contractor can propose acceleration to the other to achieve completion before the completion date

PM instructs contractor to prepare quotation within three weeks of instruction

PM replies with acceptance or rejection within 3 weeks

Question 15

What are early warnings

Answer 15

Contractor or PM can provide early warning of anything that could: (15.1)

Increase the total Prices
Delay completion
Delay a meeting a Key Date
Impair the performance of the works

Underlying principle is to be proactive in addressing risk to identify problems early and jointly find solutions

Question 16

How is early warning register maintained

Answer 16

PM prepares first early warning register and issues to contractor

The first early warning meeting must be held within 2 weeks of the starting date

Further meetings then happen at the request of the PM or contractor or at least in the intervals specified in the CD

Question 17

Failure to provide early warning

Answer 17

A party will only be compensated from the date they should have notified, not when they did notify

Must warn when an experienced contractor would