JCT: Acceleration & Pre-Agreed Adjustment

We are in contract under JCT 2016 Design and Build Sub-Contract with no design responsibility.

The original contract period was 28 calendar weeks completed in two visits with a 3 week period off site approximately 2/3rd of the way through the contract.

The main contractor issued a NTC on 31st March 2021. Under clause 2.3 we were to commence works within 2 weeks upon receipt of the NTC.

We commenced works on 9th April 2021 and in accordance with clause 2.3B submitted a subcontract programme maintaining the original philosophy of the contract programme (28 calendar 25 working). This gave a revised completion date of the 19th October 2021.

The only works available to commence on the 9th April 2021 were the soffit insulation. Under the programme, these works had a duration of 4 weeks with the main partition and ceiling works running concurrently with the soffit insulation after 8 days i.e., commencing on 21st April 2021.

The design of the partitions and ceilings were under review and as such upon completion of the soffit insulation works were suspended.

Once the design of the partitions and ceilings were resolved we were asked to target a recommencement on 21st June 2021. Applying the original Sub-Contract philosophy, the revised completion date would be 15th December 2021 (28 calendar minus 8 days soffit insulation).

Under Schedule 2 we were asked to provide an accelerated quotation. We generated an accelerated programme to complete the works in 10 weeks (24th August 2021).

This accelerated completion date, 24th August 2021, occurs prior to the completion date 19th October 2021 driven from the NTC.

Clause 2.16.2, states, ‘ Pre-agreed Adjustment’ means the fixing of a revised period or periods for completion of the sub-contract works or for such works in a Section by acceptance of a Variation Quotation or an Acceleration Quotation:’.

Schedule 2 Clause 4 states, ‘If the contractor wishes to accept a Variation Quotation or Acceleration Quotation, he shall within the period for acceptance confirm such acceptance by a direction to the Sub-Contractor station’. In addition, 4.2 states ‘the adjustment to the period or periods required by the Sub-Contractor for completion of the Sub-Contract Works and/or such works in a Section.’

Question:

Can the Main Contractor adjust the period for completion to occur prior to the original completion of the Sub-Contract and subsequently levy LAD’s from this accelerated completion date?