WK9PM - Time NEC 4

Question 1

Q1. What are the main issues in relation to time within a contract?

Answer 1

• Key dates
• Programming
• Progress
• Acceleration
• Commencement and obligation to complete on time
• Sectional completion
• Delay damages

Question 2

Q3. What significance does a programme have under JCT SBC16? What are the sanctions available if a programme is not submitted?

Answer 2

Not an actual contractual document – must be completed once contract is executed but little importance.
JCT requires the contractor to submit a master programme for execution of the works as soon as possible after the contract is executed. There are no details as to what sorts of things such programme should show and there are no requirements to submit revisions of this programme from time to time or when this programme becomes inconsistent with actual progress or contractor’s obligations.

Question 3

Q4. What significance does a programme have under NEC4? What are the sanctions available if a programme is not submitted?

Answer 3

Programme needs to be detailed: Cl 31.2 (examples)
• Start Date,
• Access Dates,
• Key Dates
• Completion Date
• Provisions for floats, TRS and H&S.
• Information required by Emp
Could result in a compensation event. When accepted by the project manager, this becomes the tool by which change is assessed, progress is monitored and assists the management of early warnings and compensation events (see later). Such is the importance of having an up-to-date accepted programme in place at all times, there are deductions from payments to the contractor for failure to submit the first programme and sanctions thereafter upon continued failure.

Question 4

Q5. What dates are included within NEC4 that enable the work to commence, and how does this compare to JCT?

Answer 4

• Access date

* Completion date – completed on or before

Question 5

Q6. The NEC4 contract details Key Dates within the contract, what are these dates, provide examples?

Answer 5

‘…the date on which work is to meet the Conditions stated. The key date is the key date stated in the Contract Data and the Condition is the condition stated in the Contract Data unless later changed in accordance with this contract.’
• Completion date
• Sectional completion

Question 6

Q7. What is a time risk allowance (TRA)? What is the difference between TRA, terminal float and activity float?

Answer 6

Total float: The time anactivitycan be delayed from its early start date without delaying the plannedcompletion date.

Terminal float: The difference between acontractor’s planned completion dateand thecompletion dateset in thecontract.

Time Risk Allowance(TRA).

TRA is the amount of time allowed by the contractor in programming activities to allow for the risk of delay should problems arise. This might allow for risks such as poor weather and inefficiencies on site that have a reasonable probability of occurring but are not significant enough to merit inclusion in the risk register.

Question 7

Q12. How are claims for additional time by the contractor assessed under NEC4?

Answer 7

Compensation events -

• consultant submits quotes within 2 weeks of being instructed
• Can reply - accept, submit revised quote, notification of making own assessment or instruction will not be given
• Changes to prices
  the actual Time Charge for the work already done and
   the forecast Time Charge for the work not yet done.

Question 8

Q14. What is meant by the term Acceleration?

Answer 8

Acceleration is the process of speeding up the work of a contractor so that a particular activity, or the project as a whole, can be completed before the date required under the contract.

Question 9

Q2. How does JCT control progress?

Answer 9

• Contractor only needs to complete on time
• Contracts ask for a master programme
• Work regularly and diligently (Cl 2.4)
• Failure to do so – terminate contract
o West Faulkner Associates v Newham LBC [1994]
• Information release schedule (stated in recital)
• SC progress?
o Ascon Contracting Ltd v Alfred McAlpine Construction Isle of Man (2000)
• NB In D&B MC does not usually submit a programme

Question 10

Q8. Why is it important that QS’s advise a client on the insurance provisions required?
What should you look for when assessing the cover?

Answer 10

As it is part of the scope of works as a QS.
Advise on time scale, cover period, exclusions, financial backing evidenced, at risk, joint names, excess levels, risk management, worst case scenario etc.

Question 11

Q9. Who is responsible if damage to adjacent property occurs but neither the Emp or MC are negligent? What can the Emp do to cover this risk?

Answer 11

Employer would be responsible – actions occurred on his land.
Joint names insurance.