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NEC ECC: How do the X7 Delay Damages operate where you have multiple Section Completion dates?

0 votes
The question here is in regards to a NEC3 Option A contract that has completion dates for approximately 30 separate sections under secondary option X5, which each have a delay damage under X7, for example:

1    £10000 per day
2    £8000 per day
3    £5000 per day
4    £10000 per day

and so on.

Some of the completion dates are reliant on the Contractor completing the other sections first. The question is what happens to the subsequent sectional Completion Dates for the later sections if the Contractor is late on completing section 1? Do they get moved in line with the original delay to section 1,and essentially reset (i.e. 'moved to the right') as per the durations in the original programme. Or do they stay static as per the original dates in the contract data, essentially meaning you will eventually end up incurring damages for multiple sections on the same day at various points in the project?
asked Feb 9 in Secondary X, W and Y options by Chris82 (120 points)  

1 Answer

+1 vote
They will each be assessed on their own merits and do not move automatically if the first one is missed. It will be up to the Contractor to recover the programme back on other milestones, or incur the delay damage cost for those as well (i.e. cumulatively). The only way you can move any of the milestones is through a compensation event. An individual compensation event could obviously affect multiple sectional completion dates.
answered Feb 9 by Glenn Hide Panel Members (74,800 points)