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NEC ECC: Can float be generated on the critical path and used to mitigate a CE

+1 vote
Float on critical path. ( NEC Option A)
Can “Float” be generated between tasks on the critical path, and can it then  be used by any party, or is it still the Contractors float?

For example there are three tasks on the critical path:-
Task A- Task B- Task C
(The Contractor has not shown any time risk allowance  on any of these tasks.)

Task A finished as planned and Task B commences and is proceeding better than anticipated and is one week  ahead of programme, then there is an EW and  CE issued for Task B during Task B due to unforeseen ground conditions, which causes an additional week of work.
Task A- Task B and CE works -Task C

The CE is implemented and Task B is completed and Task C still commences on its start date as planned.
The Contractor then submits with their quotation a programme showing an extra week on the programme for completion due to the CE and that their assessment of the programme shows:-
A) an extra week of terminal float due to the week of delay.

As there was no TRA shown on the activities is the CE programme delay assessed as.

a)     Zero,  as If the Contractor completes the task early and the subsequent activity  cannot  be commenced earlier ( Ie materials delivery date, or sub contractor arriving on site to start an activity) then  the time generated by completing the task early is float and may be used to mitigate the delay caused by the CE ( there is no TRA shown on the task so no TRA to be allocated to Terminal Float). The proceeding tasks cannot be commenced earlier so no opportunity for completion to be earlier.

b)    One week as the float that would have been generated  by the Contractor completing  the contract works early  would generate TRA and  the Contractors float becomes “Terminal” float, and the increase in time for the CE is assessed as a delay, and the actual start date of Task C not used in the assessment?

c)    Assess the accepted programme and actual progress “to date” at the date of the CE and the actual delay ie if the CE was submitted when they were three days ahead of programme then the week of delay is assessed as the difference at the time of the CE?
a.     5 days delay  – 3 days float = 2 days?
asked Sep 15, 2017 in NEC3 Time by Colin Moors  

1 Answer

+1 vote
Best answer
The answer should be b), but it depends on the timings of your Accepted Programme to see how easy this is to demonstrate. If the Contractor was running a week ahead this has created terminal float which is owned by the Contractor. If a compensation event moves planned Completion, then there is an entitlement to move Completion Date by the same amount. This is identified in the clause and guidance notes for 63.3 (or 63.5 in NEC4).
answered Sep 18, 2017 by Glenn Hide (60,130 points)