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NEC3 ECC: How is Time Risk Allowance Progressed

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If you have a programme with an activity on the critical path with a duration of 15 days and you have 5 days of TRA included in this (10 + 5) how is this progressed?

If I complete within the 10 days and reschedule the programme does my Planned Completion then just pull in 5 days prior the Contract Completion date and creates float for either contractor or client to then use?
asked Nov 6, 2016 in NEC3 Time by Gordon Proudfoot (220 points)  
recategorized Nov 6, 2016 by Glenn Hide

1 Answer

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Gordan - you progress the programme as normal, and if the item that has not needed the TRA is on the critical path the planned Completion will come forward - in your example by five days. This will create five days worth of "terminal float" which the Contractor owns and will be retained in the assessment of any compensation event (clause 63.3). If that activity was not on the critical path, then the early finish by five days would create "total float" which is shared by both Parties (who ever needs it or gets to it first).

There are several other useful posts about "terminal float" and "time risk allowance" if you have a search within this platform.
answered Nov 6, 2016 by Glenn Hide (24,730 points)  
selected Nov 7, 2016 by Gordon Proudfoot
Hi Glenn,
That is great news and a reply I did not expect.  I thought TRA would be lost if it was not required but to be able to add this onto Terminal Float is a real bonus to the contractor.  I have added a lot of TRA to the critical path activities so I expect some of these will not be required and I can therefore increase my Terminal Float.
NEC3 ECC: Transfer of non used TRA to other floats