Expert advice in minutes not days. Register it's free and ask your first question now.
ReachBack is a free community help desk for construction professionals run by Built Intelligence. A library of high-quality questions from real users with answers delivered and curated by industry experts.

4,952 questions

5,279 answers

1,043 comments

Register its Free

Download here

NEC ECC: Option A - Payment for completed activity

+1 vote
291 views
If the duration of an activity is extended as a result of a compensation event, is payment for that activity effectively delayed until the activity is complete?
asked Jun 5, 2017 in Payment by turleya (350 points)  

2 Answers

+1 vote
 
Best answer
As the contract is written, 'Yes' !

Having said this, many PM's relax this to some extent if the delay is clearly a result of a CE.
answered Jun 6, 2017 by Jon Broome (52,270 points)  
selected Mar 1, 2018 by Glenn Hide
+1 vote
Jon is correct, but if the PM is not so pragmatic/relaxed then if there is a big delay to completing an element of works you could consider a revised Activity Schedule which splits this item into two. The first element could then be paid, and the remaining element pad after the compensation event is completed. The PM would have no reason not to accept a revised activity schedule providing it is in line with programme, adds up to correct amount and costs are evenly distributed.
answered Jun 7, 2017 by Glenn Hide (71,060 points)