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NEC ECC: Removal of completion criteria for Key Date

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Within Contract Data Part 1 is a list of multiple Key Dates, with a list of Criteria required to meet the appropriate milestone.

One of these (Key Date criteria) is no longer required by the Employer. What is the correct contractual mechanism for this example?

My thoughts are for the Project Manager to issue a PMI highlighting the requirement is no longer needed, and issue a negative Compensation Event accordingly for this change. Otherwise, the Contractor could be exposed to risk at a later date should the Employer change their minds.. even if they have informally (email) stated their position.
asked Apr 4 in Contract Data by KMP2017 (840 points)  

1 Answer

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Best answer
Interesting question and one I am not sure that the contract specifically addresses, but should be able to be dealt with practically. I agree as you say that there should be an clear PMI (instruction) from the Project Manager that the Key Date is no longer required. Not so sure that that would be or needs to be a negative CE though. The works would probably proceed similarly anyway, it is just the extra liability that they are no longer liable for. If this was option C, they may be able to programme the works more effectively which might save cost and increase gainshare for both Parties.  

If they did not have to relax the Key Date and they are only doing it for the benefit of the Contractor then that might be one eventuality that a cost saving would be offered which I guess by agreement the easiest way would be as a negative CE. Otherwise I think just the instruction confirming there is no longer a liability to meet the Key Date is all that would be required so both Parties are clear where they stand.
answered Apr 4 by Glenn Hide (71,270 points)  
selected Apr 5 by Neil Earnshaw