We are currently working under and NEC4 Option A contract. The Contractor has incurred a 10 day delay due to access issues cause by the Client.
This has impacted the accepted programme and pushed out the completion date by 10 days.
Over those 10 days there was a site team consisting of 4 ops, 1 site manger and various prelims on / offsite such as planner, senior management.
As a result of the CE are they entitled to claim for all of these people for an additional 10 days? Would this be pro-rata or an assessment of what they believe they would need to complete the delayed element of the works.
Also, if there was 10 days float in the programme, would they be entitled to claim for anything as the end date would stay the same?
Many thanks
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I’m presuming that the circumstances have been acknowledged as a compensation event.
The assessment of the effect of the CE on the Completion Date is the change in planned Completion when the accepted programme (progressed to the date of the event) is impacted with the CE. You appear to have done this to arrive at 10 days. The question in respect of float depends upon the type of float, if its terminal float (the period between planned Completion and Completion Date) then it belongs to the Contractor. If its free float within the programme then depending on the amount of free float, planned Completion would not move and the Completion Date not changed.
Regarding the financial assessment, the assessment should be based on the staff/prelims that would have been required (had the CE not occurred) v those now required.
Hope this helps
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Thank you for your reply. So essentially if there was an agreed delay but it ate into free float and didn’t change the completion date, there would be no CE to assess both for time and cost?
If there is an agreed delay of 10 days, is the financial assessment on the coat to do the work which was delayed for 10 days, or a forecast of the additional 10 days now required at the end of the job?
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Just to clarify there is a CE, your question relates to the assessment of it.
For the assessment of time, if planned Completion on the accepted programme does not move when impacted then there is no change to the Completion Date.
For the assessment of cost, the staff/prelims should be assessed as the change due to the event (even if there is no delay to planned Completion). It is not the 10 days at the end because the staff profile may ramp down. As well as the staff/prelims there may be other things to consider such as work activities being delayed.
Hope this clarifies.
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