Contract Programme renegotiation due to Contractor Delay

Hi, and thanks in advance.

We have started a project that had an install period initially of Feb - October. Due to documented client delays, our install period could not start until early August. We originally signed up to the contract late 2022, which obviously included the programme.

At the time of signing, and during the contract programme period we had sufficient resource to deliver the project, and then expecting to be complete around this time, we have other projects where the resource is now required.

The Client is wanting us to maintain the CP duration, but we are explaining that the additional resource we could have used is no longer available.

Is there a mechanism with NEC for re-negotiation of the CP duration due to programme pushing to the right so far that it then affects other projects, and if so what would be the correct way to manage this?

Note: we have had many round the table discussions advising this, but we are now at crunch point.

Thanks for any advice.

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Welcome to the group.

If you have entered an NEC contract, those issues are dealt with under the compensation event regime, i.e. when the delay started a compensation event should have been notified. There is normally a time bar kicking in after 8 weeks from becoming aware of the event, however this wouldn’t apply if there is an instruction in place.

Under the above process (provided that you have not lost such right) you would be able to provide a quotation for the time and cost impact of the delay.

I hope this helps in directing your further actions/advice sought.

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Thank you Peter for taking the time to respond.

We have known a little while that the programme was ‘fluid’ :roll_eyes: but it’s only in the last couple of weeks that the client has asked us to look to add additional labour to hit an end date. Our issue is that we don’t have surplus labour available as the programme has slipped so far (6 months) that we can only continue with the resource we have on site as we stand.

I was wondering whether the CE route would enable a complete re-write of the programme as in reality we have 8 men on site, but my site manager would argue that 4 of them should be finishing soon to start another scheme.

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No worries at all.

The CE is your only route to extend the programme (i.e. push back your planned Completion and consequently the Completion Date), based on the last Accepted Programme and taking into account the delays caused by your client - subject to the time bar issue mentioned previously.

I’m not sure if you will manage to prolong the original duration (I understand that this is the main concern here); this would turn on the events that took place and your previous correspondence with the client, including any early warnings given etc. Depending on those factors and how you will advance your case, you might be able to negotiate a suitable solution.

All the above in the context of an agreed NEC contract - if both parties have moved away from it (either expressly or through their conduct) things might need to be looked at differently.

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