NEC3 ECC: Time Risk Allowance

NEC3 and NEC4 Contracts Time
1

A Contractor’s first accepted programme (previous PM) did not include TRA. The new PM insists on TRA being included in the next programme submitted for acceptance in line with the contract and this has pushed the completion date out. What happens next?

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2

Few key points here in response:

  1. PM is obliged to not accept a programme for a valid reason under clause 31.3 - despite if the equivalent programme has previously been accepted with the same issue i.e. no TRA.
  2. Once the programme has TRA included, it is obviously highly likely that some of that TRA will be on the critical path and so push out “planned Completion”.
  3. Completion Date should not have been moved, and now if planned Completion is beyond the Completion Date then that is the Contractor’s liability to try to recover, and if not be liable for delay damages.

So what happens next is that at least there should now be a revised Accepted Programme, and the Contractor needs to work towards mitigating their own delay to bring back planned Completion in line with Completion Date to avoid being liable for any delay damages under X7.