We are currently working on an NEC3 option E contract. If delays take place which affect the critical path and there is TRA against the activity can the TRA be utilised for absorbing the delay (if caused by the Client) or does the TRA become terminal float?
The contract contains no damages or penalties, it has Key Dates which will be moved in CP impact takes place. We (the Client) are trying to see if it is correct for the Key Dates to move and the Contractor keep TRA as terminal float, or, if the TRA can be used to absorb the delay.
Thank you for any help.
Time Risk Allowance (TRA) always belongs to the Contractor, the Employer can not utilise this. If the Employer (Client) is causing delays to the critical path then it’s likely a Compensation Event. The Contractor maintains the TRA and moves the Key Dates, Planned Completion and Completion Date by the forecast duration of the delay. These are only moved when the CE is implemented by the PM.
Just to add: The Contractor should include provisions for risk in their CE impact programme, they build TRA into the new CE activity. This float always belongs to the Contractor.
TRA (on each activity) = Contractors.
Terminal Float (Planned Completion to Completion Date) = Contractors
Total Float = (Last activity on the non critical path to Planned Completion) = Project float, used on a “who gets there first” basis.
Thank you for clarifying this.