NEC3 ECC:Both Parties in Delay

The Employer was to free issue equipment to be installed by the contractor. The equipment arrived 10 weeks late, the Employer notified the Contractor by EWN that the equipment would be delay. Subsequently an NCE was raised to cover the time and cost implications by the Contractor.

The contractor then went into delay in the work area of the work where the free issue equipment was required for (over and above the initial 10 week delay). The Employer is therefore not accepting the NCE as they are implying that no delay to programme has been incurred as a result of them failing to meet their supply obligations.

Please could you advise which would take precedence, or as both parties are in delay would this ultimately cancel out either Parties entitlement for additional costs / penalties imposed?

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You assess the delay’s in the order that they have occurred. The late issue of material was the first delay and you assess what impact that had on the planned Completion and move Completion Date by same amount. This happens to create float to the Contractor, which in this case he may have been lucky has been created. Any further delay to planned Completion is now the Contractors.

Had these two events happened in reverse order, then there would be no entitlement as Contractor delay came first.