Clause 55.3 states that the subcontractor revises the activity schedule if there are changes to the planned method of working at its discretion.
What is the position if there are changes are imposed by contractor driven change?
Also if the subcontractor cannot complete an activity through no fault of his own what remedies are available? We have an activity where we have completed 90% of the work, but are prevented from gaining access to complete the last 10%. Is the contractor entitled to retain full payment even though he is responsible for being unable to complete?
We would like to revise the activity schedule by splitting the activity to two items 90/10, but it is not at our discretion.
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Does anyone have any opinion on this?
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@chriscorr @Barry_Trebes any thoughts on this?
Does anyone have an opinion on this?
“NEC4 ECC/ECS Clause 54.1 allows a Contractor or Subcontractor to submit an amendment to their AS when they change a method of work so that the AS and Accepted Programme align.
A reason for non acceptance is that it changes the tendered total of the Prices.
So, if a Contractor/Subcontractor realize that they have missed out some activities on the AS or add operations to the AP then the AS needs to be amended.
If there is a PMI/CE that changes what the C or S is to do then the CE shows the changes to the programme. The AP and the AS should be updated to make them align.
Changes to the Prices are shown as changes to the Activities on the activity schedule. When a quotation for a CE is submitted the C/S identify which operations/activities are impacted.
Adding a CE to an existing activity may extend the activity such that it will not be complete in the previous month so delaying completion/payment to the next month.
Therefore, a C/S to avoid this may decide to show the work separately on the programme and show a seperate activity on the AS.
Simply deciding to split an activity 90/10 % complete is not a reason to amend the AS and if there is not a corresponding activity on the AP then the AP and AS are then not aligned.
If, however you update your programme to shown a seperate activity/operation then you would then also need to update your AS.
In relation to % complete there is no such thing in NEC either an activity it is complete or not. You could have a proportion of a lump sum.
If as a S the C has issued a PMI/CE then when you assess the CE you need to carefully think about how that CE may impact your AP and AS.
The question to ask is will adding a CE to an existing activity delay an activity being complete and delay payment. In which case you may wish to show a seperate operation on the Accepted Programme and update the Activity Schedule.”
To put it simply, it sounds like you have been denied access to to complete the works.
In that case you should notify a CE.
Once notified, you need to submit your quotation with a programme showing the effect of the even on the remaining work.
This program should spilt the previous activity into two three sub activities; initial element of the work, compensation event and remaining work.
You should then put this change into the next programme for acceptance.
If the contractor is being fair he will accept the programme. Once accepted, you can change the activity schedule to incorporate the new activities in the programme
Thank you Barry and JP. I think we will We will revise our programme accordingly referencing the CE.
I’m still a little confused to the wording of 55.3 which says that the subcontractor revises the activity schedule if the changes are at its discretion, but now mention of changes at the behest of the MC. Likewise the contractor/ PM in the main contract.
Paul
I would advice the steps in this order
Notify a CE under clause 61.
Issue a CE quotation with a CL62 programme with a CE quotation.
After the above are submited, you update the Clause 32 programme and then revise the activity schedule.