Accepted programme

NEC3 and NEC4 Contracts Compensation Events
1

I am working on an NEC 3 Option A contract.

The project manager issued an instruction changing the works information. The contractor has submitted a quotation including a programme (cl62.2) showing a change to Planned Completion.

The Contractor used the accepted cl32 programme and progressed that programme up to the switch date i.e. the date the instruction was given. This programme then became the baseline programme for the assessment.

Following a review of the submitted programme (cl62.2), it has become apparent that there is an error in the accepted cl32 programme used to establish the baseline programme i.e. the calculated time period between completion of the steelwork design to when it is required on site (Erection) is insufficient to allow for procurement, fabrication and delivery - Note there is no individual activities in the programme to represent procurement, fabrication and delivery. Erection of Steelwork is on the critical path, therefore, in reality the accepted cl32 programme should show that the contractor was in delay.

If the time period between completion of the steelwork design to when it is required on site (Erection) was amended to allow for procurement, fabrication and delivery, on the baseline programme, when the compensation event activities are then included there would be no impact on “critical path” activities and thus there would be no change to planned completion.

It is my understanding that the Contractor should be not better off, had the compensation event not occurred.

Can the accepted programme be amended to reflect the “actual position” of the contractor at the time the instruction was given?

2

In principle, what you suggest sounds correct. Given that both sides agree regarding the error, and in order to fully comply with the process, it would be best if the Contractor submitted a revised (correct) programme for acceptance, following which, the CE can be assessed (an instruction for a revised quotation by virtue of the above error could also be issued).

There is a fine point though where you assume that, had the lead time been included, the Contractor would be in delay. It is worth checking if with the lead time inserted, the Contractor would adjust its subsequent activities so as to absorb that delay and not change its planned Completion. In such a case, it is not impossible that the CE would cause a delay to planned Completion.

Just food for thought.

3

Thanks for your comments.

However, it was maybe not clear in my original query but the baseline programme (progressed accepted programme) was not the latest accepted programme.

Can a superseded accepted programme be amend if an error is found whilst assessing a compensation event?

4

As per my previous comments, a revised quotation would include alterations to the Accepted Programme; this could be the “corrected” programme following acceptance by the PM.