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NEC ECC: How does an extension of time affect Sectional Completion
NEC 4 contract - Sectional completion on a current contract covers 2 distinct areas but in CD is not split out to these areas instead lumped as one - one of these areas will be granted an extension of time (area 1), however the two areas are independent of each other and area 2 is not affected by the delay in area 1.
The Contractor has stated that the extension of time on area 1 means that sectional completion will be extended to also cover works in area 2 – does the original sectional completion date apply to the other area (area 2) or by default is it granted the extension?
Dec 9, 2019
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If the programme is logic linked correctly then the answer will be clear when the programme is updated and rescheduled. If area 1 is delayed but it does not affect area 2 then there will be no change to area 2. However, if area 1 is now exceeding beyond area 2 (assuming it was previously before) then this will affect the overall planned Completion which then also needs to be taken into account with the original compensation event to area 1. However much planned Completion is moved by as a result of the area 1 CE would allow Completion date to be moved by the same amount (once the CE is implemented) and any associated prelims with the move in Completion Date to be assessed within the quote as well.
Just to be clear, the sectional Completion Date is not automatically moved and any associated delay damages within secondary options X5/X7 still applicable to section 2, but the overall Completion Date will move out now in line with area 1.
If area 1 is delayed but still finishes before end of area 2 as a result of the compensation event, then it will only move the sectional Completion Date for area 1 (Assuming there really is no logic links at all between the two areas).
Dec 10, 2019
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