Our current contract has a first programme for acceptance that shows a terminal float. Subsequently we have received an instruction to remove an element of works that brings planned completion date forward.
Question is does this create free float or terminal float as the completion date has not changed?
Whilst a compensation event can bring planned Completion forward, it can never bring the Completion Date forward. Clause 63.3 explains how extensions of time are assessed for compensation events and it refers to “a delay to the Completion Date” and “planned Completion is later than planned Completion as shown on the Accepted Programme”. The omission of work will most likely not cause a delay to the Completion Date and will probably make planned Completion earlier so there is no reduction in time. The general rule of thumb with omitting work is that the Employer can get the cost but not the time. The time is for the Contractor to use as they want, either choose to finish earlier, use it to absorb other delays or just take longer.