The Contractor is currently showing on the Accepted Programme that they are 10 days delayed on a Sectional Completion Date due to issues on site which are a Contractors risk. Some time has passed and there has been an event which is an Employer’s risk which can be demonstrated to have caused 5 days delay to that same sectional completion date.
As an example
Contract Data Sectional Completion Date 15/10/2021
Accepted Programme showing the delay 25/10/2021
Compensation Event Programme 20/10/2021
Even though the Contractor is showing they will be late, does the Project Manager have to change the sectional completion date to the 20/10/2021 ?
To assess the effect of the CE on the Completion Date the accepted programme in place at the date of the CE occurring should be used. The first step is to progress that programme to the date of the CE occurring. That resulting programme should then be impacted with the CE and the difference in planned Completion between the two is the change in the Completion Date.
Your case appears to be that the 5 days delay due to the CE is after the 10 days delay so the Completion Date will move by 5 days, planned Completion having moved by 15 days, 10 Contractor delay and 5 Employer’s delay. If your case is that the 5 days Employer’s delay was due to an event that occurred after the Contractor’s delay but ran concurrent with the 10 days then these is no change to Completion Date, the CE has had no effect. If the cause of the 5 days Employer’s delay was an event before the contractor started to be in delay the the change in Completion Date is 5 days, ie the effect of the CE.
I understand the principle regarding a The Completion Date and Planned Completion date. It that principle also applied to Section Completion Dates (X5) ?
In my example where the Contractor has shown firstly a delay of 10 days to a section completion date, but there is an Employers delay of 5 days running concurrently to that same sectional completion date, what I’m trying to ask is whether LDs (X7) would be applied at the full 10 days irrespective of the 5 days the Employers has delayed the works concurrently.
Hi, yes the same principle applies to Sectional Completion Dates. In your case the question is which event occurred first (the compensation event or the Contractor’s delay). If the Contractor was already in delay over 5 days then the Employer’s risk has not caused a delay, if the Employer’s risk occurred first then the Contractor is entitled to the 5 days adjustment to the Sectional Completion Date.