Subcontractor failed to maintain an accepted programme. An event occurred which is an Employers risk.(1 day)
a) Is Contractor entitled to a CE. (Contractor has failed to submit revised programmes throughout the project, there is an Accepted Programme though which dates have all been missed since this was done in the beginning)
b) Can Project Manager tell Contractor to use Total/free float to absorb the impact? And if so, must Contractor submit a revised schedule to show how this one day will be used to recovery the very low productivity/ progress they lost. (PM’s view is they are not even achieving their planned progress, they have missed their key dates, why would they be insistent in wanting a CE? To what end? Even if its just time, their progress achieved is so little PM fails to see how will one day effect the overall project) PM is implementing 25.3.
a) An Employers risk occurring is a compensation event. This should be notified by the Contractor within 8 weeks of becoming aware otherwise they are time-barred(unless it is one of the seven reasons the Project Manager is obliged to notify).
b) You cant just tell a Contractor to use total float. The CE should be assessed upon the programme. A one day CE could have no affect on the programme/planned Completion or could have several days effect. In the absence of an accepted programme, under clause 64.1 the PM is obliged to make their own assessment of the compensation event. Practically speaking this will mean taking the last Accepted Programme and bringing it up to date with all progress and other changes up until the point you became aware of the CE, and then see the extra over effect of the CE. That should then be the change to the respective Completion Date (or Key Date)
Even if a Contractor is in delay, they will always be entitled to the effects of a compensation event over and above any delay they have already caused and are liable for. If a Contractor is running six weeks beyond Completion Date and there is a two week compensation event that delays planned Completion by two further weeks, Completion Date moves by two weeks (maintaining the six week delay).