1. Dennis Li - HKCIC Lecturer
Principles of NEC
Dennis Li
- HKCIC Lecturer

2. Lecture 3 Communication and Time
Periods for reply
Communication protocols
Managing time
Programme management
Extension of Time and prolongation cost
Acceleration
Completion

3. Communication

4. NEC ECC Clause 13 - Communications
13.1 Each instruction, certificate, submission, proposal, record, acceptance, notification, reply and other communication which this contract requires is communicated in a form which can be read, copied and recorded. Writing is in the language of this contract
13.2 A communication has effect when it is received at the last address notified by the recipient for receiving communications or, if none is notified, at the address of the recipient stated in the Contract Data.

5. NEC ECC Clause 13 - Communications
13.3 If this contract requires the Project Manager, the Supervisor or the Contractor to reply to a communication, unless otherwise stated in this contract, he replies within the period for reply.
13.4 The Project Manager replies to a communication submitted or resubmitted to him by the Contractor for acceptance. If his reply is not acceptance, the Project Manager states his reasons and the Contractor resubmits the commu­nication within the period for reply taking account of these reasons. A reason for withholding acceptance is that more information is needed in order to assess the Contractor's submission fully.

6. NEC ECC Clause 13 - Communications
13.5 The Project Manager may extend the period for reply to a communication if the Project Manager and the Contractor agree to the extension before the reply is due. The Project Manager notifies the Contractor of the extension which has been agreed.
13.6 The Project Manager issues his certificates to the Employer and the Contrac­tor. The Supervisor issues his certificates to the Project Manager and the Contractor.
13.7 A notification which this contract requires is communicated separately from other communications.

7. NEC ECC Clause 13 - Communications
13.8 The Project Manager may withhold acceptance of a submission by the Contractor. Withholding acceptance for a reason stated in this contract is not a compensation event.

8. Programme

9. Programme and Time
Clause 31.2: The Contractor shows on each programme which he submits for acceptance
the starting date, access dates, Key Dates and Completion Date,
planned Completion,
the order and timing of the operation which the Contractor plans to do in order to Provide the Works,
the order and timing of the work of the Employer and Others as last agreed with them by the Contractor or, if not so agreed, as stated in the Works Information
If programme not accepted:• Neither party clear on the Completion Date and contractor entitlement in terms of outturn cost• 25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requires• Employer will in the absence of a newly accepted programme assess change (CE’s) on the last accepted programme • Important to both parties programme regularly accepted.• Otherwise enjoy the traditional end of project bun-fight
to sort out the final account…
Clause 64 Project Manager’s Assessment The Project Manager may make his own assessment of a compensation event for the reasons stated in Clause 64.1:• if the Contractor has not submitted a quotation within the timescale,• the Contractor has not assessed the compensation event correctly and does not instruct the Contractor to submit a revised quotation,• he has not submitted a programme or alterations to a programme which this contract requires him to submit or• If, the Project Manager has not accepted the Contractor’s latest programme for one of the reasons stated in this contract.
Employer:• Review programme well within two week response period and give early comment • Aim for a one week response for programme acceptance where ever possible• Give clear specific detailed reasons why it is not accepted - only four reasons under the contract• Accept with comments – comments being minor issues that can be put right on the next programme issue
Contractor:• Make sure your programme fully complies with clause 31.2 (and 32.1)• Show difference between planned completion/ Completion Date• Comprehensive programme narrative with each submission• Programme review meeting during acceptance period with PM• If no response to programme – call a meeting and try to bring it to a head

10. Programme and Time Clause 31.2:
the dates when the Contractor plans to meet each Condition stated for the Key Dates and to complete other work needed to allow the Employer and Others to do their work,
provisions for
float,
time risk allowances,
health and safety requirements, and
the procedures set out in this contract
Programme and Time
If programme not accepted:• Neither party clear on the Completion Date and contractor entitlement in terms of outturn cost• 25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requires• Employer will in the absence of a newly accepted programme assess change (CE’s) on the last accepted programme • Important to both parties programme regularly accepted.• Otherwise enjoy the traditional end of project bun-fight
to sort out the final account…
Clause 64 Project Manager’s Assessment The Project Manager may make his own assessment of a compensation event for the reasons stated in Clause 64.1:• if the Contractor has not submitted a quotation within the timescale,• the Contractor has not assessed the compensation event correctly and does not instruct the Contractor to submit a revised quotation,• he has not submitted a programme or alterations to a programme which this contract requires him to submit or• If, the Project Manager has not accepted the Contractor’s latest programme for one of the reasons stated in this contract.
Employer:• Review programme well within two week response period and give early comment • Aim for a one week response for programme acceptance where ever possible• Give clear specific detailed reasons why it is not accepted - only four reasons under the contract• Accept with comments – comments being minor issues that can be put right on the next programme issue
Contractor:• Make sure your programme fully complies with clause 31.2 (and 32.1)• Show difference between planned completion/ Completion Date• Comprehensive programme narrative with each submission• Programme review meeting during acceptance period with PM• If no response to programme – call a meeting and try to bring it to a head

11. Programme and Time Clause 31.2:
the dates when, in order to Provide the Works in accordance with his programme, the Contractor will need
access to a part of the Site if later than its access date,
Acceptance,
Plant and Materials and other things to be provided by the Employer and
Information from Others,
for each operation, a statement of how the Contractor plans to do the work identifying the principal Equipment and other resources which he plans to use and
Other information which the Works Information requires the Contractor to show on a programme submitted for acceptance
If programme not accepted:• Neither party clear on the Completion Date and contractor entitlement in terms of outturn cost• 25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requires• Employer will in the absence of a newly accepted programme assess change (CE’s) on the last accepted programme • Important to both parties programme regularly accepted.• Otherwise enjoy the traditional end of project bun-fight
to sort out the final account…
Clause 64 Project Manager’s Assessment The Project Manager may make his own assessment of a compensation event for the reasons stated in Clause 64.1:• if the Contractor has not submitted a quotation within the timescale,• the Contractor has not assessed the compensation event correctly and does not instruct the Contractor to submit a revised quotation,• he has not submitted a programme or alterations to a programme which this contract requires him to submit or• If, the Project Manager has not accepted the Contractor’s latest programme for one of the reasons stated in this contract.

12. Programme and Time Clause 31.3:
Within 2 weeks of the Contractor submitting a programme to him for acceptance, the Project Manager either accepts the programme or notifies the Contractor of his reasons for not accepting it. A reason for not accepting a programme is that
The Contractor’s plans which it shows are not practicable
It does not s how the information which this contract requires,
It does not represent the Contractor’s plans realistically or
It does not comply with the Works Information.
If programme not accepted:• Neither party clear on the Completion Date and contractor entitlement in terms of outturn cost• 25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requires• Employer will in the absence of a newly accepted programme assess change (CE’s) on the last accepted programme • Important to both parties programme regularly accepted.• Otherwise enjoy the traditional end of project bun-fight
to sort out the final account…
Clause 64 Project Manager’s Assessment The Project Manager may make his own assessment of a compensation event for the reasons stated in Clause 64.1:• if the Contractor has not submitted a quotation within the timescale,• the Contractor has not assessed the compensation event correctly and does not instruct the Contractor to submit a revised quotation,• he has not submitted a programme or alterations to a programme which this contract requires him to submit or• If, the Project Manager has not accepted the Contractor’s latest programme for one of the reasons stated in this contract.

13. Programme and Time Clause 32.1:
The Contractor shows on each revised programme
The actual progress achieved on each operation and its effect upon the timing of the remaining work,
The effects of implemented compensation events,
How the Contractor plans to deal with any delays and to correct notified Defects and
Any other changes which the Contractor proposes to make to the Accepted Programme.
If programme not accepted:• Neither party clear on the Completion Date and contractor entitlement in terms of outturn cost• 25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requires• Employer will in the absence of a newly accepted programme assess change (CE’s) on the last accepted programme • Important to both parties programme regularly accepted.• Otherwise enjoy the traditional end of project bun-fight
to sort out the final account…
Clause 64 Project Manager’s Assessment The Project Manager may make his own assessment of a compensation event for the reasons stated in Clause 64.1:• if the Contractor has not submitted a quotation within the timescale,• the Contractor has not assessed the compensation event correctly and does not instruct the Contractor to submit a revised quotation,• he has not submitted a programme or alterations to a programme which this contract requires him to submit or• If, the Project Manager has not accepted the Contractor’s latest programme for one of the reasons stated in this contract.

14. Programme and Time Clause 32.2:
The Contractor submits a revised programme to the Project Manager for acceptance
Within the period for reply after the Project Manager has instructed him to,
When the Contractor chooses to and, in any case,
At no longer interval than the interval stated in the Contract Data from the stating date until Completion of the whole of the works.
If programme not accepted:• Neither party clear on the Completion Date and contractor entitlement in terms of outturn cost• 25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requires• Employer will in the absence of a newly accepted programme assess change (CE’s) on the last accepted programme • Important to both parties programme regularly accepted.• Otherwise enjoy the traditional end of project bun-fight
to sort out the final account…
Clause 64 Project Manager’s Assessment The Project Manager may make his own assessment of a compensation event for the reasons stated in Clause 64.1:• if the Contractor has not submitted a quotation within the timescale,• the Contractor has not assessed the compensation event correctly and does not instruct the Contractor to submit a revised quotation,• he has not submitted a programme or alterations to a programme which this contract requires him to submit or• If, the Project Manager has not accepted the Contractor’s latest programme for one of the reasons stated in this contract.

15. Example Programme 1 Activities Duration Commencement Activity 1
Planned Completion
Completion Date
Critical Path
Terminal Float
Risk Allocance
Float
Float

16. Definitions
Critical Path is the longest sequence of activities in a project plan which must be completed on time for the project to complete on the due date.
Float – The time by which an activity may be delayed without affecting the overall project duration.
Terminal Float – the amount of float between planned completion and the Contract Completion Date
Risk allowance – reasonable allowance to account for risks in Contractor’s programme

17. FLOAT AND OWNERSHIP Terminal float – belongs to the Contractor?
Time risk allowance – belongs to the Contractor
Activity float / free float – belongs to the first to use it

18. Who owns the float?: Employer CE
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
‘Operation 4’ has to start after CE001
2 weeks float

19. Who owns the float?: Employer CE
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
Clause 63.3
A delay to the Completion Date is assessed as the length of time that, due to a compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme
1 week float
planned Completion is unaffected, the Employer takes advantage of the float

20. Who owns the float? Critical operations: 2 weeks float
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
operation 4
operation 5
planned Completion
Completion Date
Critical operations:
2 weeks float
Non-critical operations:

21. Who owns the float?: Contractor delay
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
This affects the start date of ‘Operation 4’
2 weeks float

22. Who owns the float?: Contractor delay
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
But……..what happens if both occur?
No float remains
The Contractor takes advantage of the float 22

23. Who owns the float? Critical operations: 2 weeks float
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
operation 4
operation 5
planned Completion
Completion Date
Critical operations:
2 weeks float
Non-critical operations:

24. Who owns the float?: Employer CE
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
‘Operation 4’ has to start after CE001
2 weeks float

25. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
1 weeks float

26. It’s who gets there first!
Who owns the float?
It’s who gets there first!
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
Clause 63.3
A delay to the Completion Date is assessed as the length of time that, due to a compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme
1 weeks float
planned Completion is unaffected, the Employer takes advantage of the float

27. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
This effects the start date of ‘Operation 4’
1 weeks float

28. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date

29. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
Not a race
Shared float
Importance of keeping the programme up to date
Delay, no CE 29

30. Who owns the float?: Contractor delay
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
This effects the start date of ‘Operation 4’
2 weeks float

31. Who owns the float?: Contractor delay
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
No float remains
The Contractor takes advantage of the float

32. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
CE001 must complete before ‘Operation 4’ can start

33. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date

34. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
planned Completion is now 1 week later

35. It’s who gets there first!
Who owns the float?
It’s who gets there first!
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
Clause 63.3
A delay to the Completion Date is assessed as the length of time that, due to a compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme
The CE will cover the one week effect.

36. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
What happens if the Contractor is already in delay and we notify a CE?
i.e. planned Completion is after the Completion Date
Delay

37. It’s who gets there first!
Who owns the float?
It’s who gets there first!
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
CE001 must complete before ‘Operation 4’ can start

38. It’s who gets there first!
Who owns the float?
It’s who gets there first!
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
Contractor delay
operation 4
operation 5
planned Completion
Completion Date
Clause 63.3
A delay to the Completion Date is assessed as the length of time that, due to a compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme
1 further week Delay
The CE will cover the one week effect. 38

39. This belongs to the Contractor
Who owns the terminal float?
© NEC Contracts
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
operation 4
operation 5
planned Completion
Completion Date
How do we know?
Which clause states this?
This belongs to the Contractor
Terminal float

40. Who owns the terminal float?
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
This effects the start date of ‘Operation 3’
Terminal float

41. Who owns the terminal float?
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
Terminal float

42. Who owns the terminal float?:
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
operation 1
operation 2
operation 3
CE001
operation 4
operation 5
planned Completion
Completion Date
Clause 63.3
A delay to the Completion Date is assessed as the length of time that, due to a compensation event, planned Completion is later than planned Completion as shown on the Accepted Programme
Terminal float
The CE will cover the one week effect.

43. Other Problems Concurrent delay
Employer’s risk event occurs after completion date
Evaluate by planned progress? Actual Progress?

44. Bridge forms critical path (6 months to construct)
Approach Road has 66d of “float”
66d
THE INITIAL PROGRAMME (Carefully planned and resourced)

45. 1st window
VO1
Increased depth: 20d additional excavation
Subcontract award after 25d (5d late)
Paving not commenced due to material shortage
20d delay due to VO1
SITUATION AS AT END OF FEB 07 (Close of First ‘Window’)

46. Events in First “Window” (Jan/Feb)
Day 1: Excavation starts; S/C bids compiled;
Day 10: VO1 issued, increasing the depth of abutment foundations – 20d extra excavation required;
Day 25: Road Subcontract awarded (NB. 5d late);
Day 58 (End of window): (i) Abutments excavation almost completed; (ii) Road paving cannot be sourced (materials shortage)

47. Events in 2nd “Window” (Mar/Apr)
Day 60: Excavation of abutments completed; Day 75: Pavement laying commenced
Day 90: Concreting of abutments completes slowly, taking 30d in total (so a 14d delay);
Day 100: VO2 – major instruction for a further ½km of road, in difficult ground (on piles) – planned at 21d to source piling s/c, 30d to drive 30 piles, 20d to test, 30d to construct new road & drains, and 15d for street furniture. A total duration of 114d is required.
Day 120 (End of window): No further delays, but due to massive VO2, the approach roads are now on the critical path

48. Slow Concreting of Abutments (14d delay)
2nd window
Slow Concreting of Abutments (14d delay)
21d
VO2
New 0.5km of road; in poor ground (on piles)
48d delay; (20d VO1, 14d slow abutments; 14d VO2)
SITUATION AS AT END OF APR 07 (Close of Second ‘Window’)

49. Events in 3rd “Window” (May/Jun)
Day 121: Falsework erectors go on strike for the whole month of May
Day 135: Contractor says that he will mitigate the delay by doubling up resources on the commissioning stage;
Day 160: VO3 – 10 more piles instructed in the new piled approach section, these will take an extra 10 days to complete
Day 181 (End of window): No further delays, but due to the month-long strike, the bridge has become once again more critical than the approach road

50. One month lost due to falsework s/c strike
3rd window
One month lost due to falsework s/c strike
Mitigation: commissioning now only 8d
21d
VO3: Additional piles instructed at new road
VO3
66d delay; (20d VO1, 14d slow abutments; 14d VO2; 25d strike; -7d mitigation)
SITUATION AS AT END OF JUN 07 (Close of Third ‘Window’)

51. Events in 4th “Window” (Jul/Aug)
Day Day 243: Further problems with Falsework erectors – not all were pleased with strike settlement terms, and productivity suffers.
Day 243 (End of window): No further delays; approach road completed bar for commissioning; but the elevated bridge concrete deck only managed completion at the very end of this period. The bridge thus remained more critical than the approach road throughout.

52. SITUATION AS AT END OF AUG 07 (Close of Fourth ‘Window’)
More than one further month lost due to poor falsework s/c productivity
21d
98d delay; (20d VO1, 14d slow abutments; 14d VO2; 25d strike; -7d mitigation; 32d poor falsework productivity)
SITUATION AS AT END OF AUG 07 (Close of Fourth ‘Window’)

53. Events in 5th “Window” (Sep/Oct)
Day 270: VO4, some new road markings and revised drainage causes an extra 10d of work.
Day 289 (End of project): The project completes on 16 October 2007, some 108 days late.
Critical VOs:- VO1=20d, VO2=14d; VO4=10d: Total = 44d

54. New Road marking scheme
5th window
21d
VO4
New Road marking scheme
108d
-108
SITUATION AS AT END OF OCT 07 (Close of Fifth ‘Window’)

55. 20d
14d
10d

56. As-Built Subtracted Analysis
Take the as-built programme, and subtract the delays which the contractor has suffered (which are not to his own default).
This gives rise to a theoretical date, the date on which the contractor would have finished but for the delays
The difference between the ABBF date, and the actual completion date represents the potential entitlement to EOT

57. AS-BUILT BUT-FOR / AS-BUILT SUBTRACTED ANALYSIS
VO1
21d
VO2
VO3
VO4
-108
AS-BUILT BUT-FOR / AS-BUILT SUBTRACTED ANALYSIS

58. AS-BUILT BUT-FOR / AS-BUILT SUBTRACTED ANALYSIS
-78
AS-BUILT BUT-FOR / AS-BUILT SUBTRACTED ANALYSIS

59. As-Built Subtracted Analysis
The “longest path” is favoured
Only the VOs on the longest path feature in the subtraction, irrespective of the contemporary criticality of other VOs
Thus, VO1 (20d) and VO4 (10d) are those which, when subtracted, cause the ABBF date to be collapsed back in time. Thus the potential EOT entitlement here is 30d (cf. 44d in the windows analysis)

60. As-Planned Impacted Analysis
The initial programme (warts and all) is taken, and into it are impacted all of the delays which the contractor has suffered
The impacts are ‘added’ into the initial network; sometimes this is done in ‘real time’, but this causes problems if the delays are caused late due to the contractor’s own problems (e.g. a VO instructed at a late stage merely because of earlier contractor’s delays);

61. THE INITIAL PROGRAMME (Carefully planned and resourced)

62. THE INITIAL PROGRAMME IMPACTED WITH VO1-VO4

63. As-Planned Impacted Analysis
The impacts take no account of progress, or of any of the contractor’s own defaults.
The resultant date is again a theoretical date, perhaps best described as the date for which the contractor would have programmed if it had know about all of the additionally instructed work at the outset;
If the VOs are impacted in chronological order, then they all figure in this example: VO1=20d; VO2=28d*; VO3=10d; VO4=10d: Total = 68d (cf. 30d ABBF, 44d windows analysis)
* Net delay given initial float and the prior occurrence of VO1

64. City Inn v Shepherd Construction [Appeal: 2010]
CONCURRENT DELAY (Lord Carloway)
The initial exercise to be carried out by the architect occurs upon the application of the contractor, who will have requested an extension of time by intimating, under clause 25.2, that the progress of the Works "is being or is likely to be delayed". He will claim that a Relevant Event has been the, or at least a, cause of the delay. The architect then has to decide whether he considers that the completion of the Works is likely to be delayed by a Relevant Event beyond the Completion Date (clauses and 2).

65. City Inn v Shepherd Construction [Appeal: 2010]
CONCURRENT DELAY (Lord Carloway)
This provision is designed to allow the contractor sufficient time to complete the Works, having regard to matters which are not his fault (i.e. Relevant Events). This does not, at least strictly, involve any analysis of competing causes of delay or an assessment of how far other events have, or might have, caused delay beyond the Completion Date. It proceeds, to a large extent, upon a hypothetical assumption that the contract has proceeded, and will proceed, without contractor default. It involves an assessment, on that assumption, of the delay which would have been caused to the Completion Date purely as a result of the Relevant Event.

66. City Inn v Shepherd Construction [Appeal: 2010]
CONCURRENT DELAY (Lord Carloway)
But the exercise remains one of looking at the Relevant Event and the effect it would have had on the original (or already altered) Completion Date. If a Relevant Event occurs (no matter when), the fact that the Works would have been delayed, in any event, because of a contractor default remains irrelevant. In that respect, the view of HHJ Seymour QC in Royal Brompton Hospital NHS Trust v Hammond & Others (No 7) [2001] 76 Con LR 148 (at para 31), that a Relevant Event falls to be disregarded if a pre-existing contractor default would nonetheless have caused the delay, appears to be in error.

67. Key Date
30.3 – The Contractor does the work so that the Condition stated for each Key Date is met by the Key Date.
25.3 – If the Project Manager decides that the work does not meet the Condition stated for a Key Date by the date stated and, as a result, the Employer incurs additional cost either
in carrying out work or
by paying an additional amount to Others in carrying out work
on the same project, the additional cost which the Employer has paid or will incur is paid by the Contractor. The Project Manager assesses the additional cost within four weeks of the date when the Condition for the Key Date is met. The Employees right to recover the additional cost is his only right in these circumstances.

68. Cl Acceleration
36.1 – The Project Manager may instruct the Contractor to submit a quotation for an acceleration to achieve Completion before the Completion Date. The Project Manager states changes to the Key Dates to be included in the quotation. A quotation for an acceleration comprises proposed changes to the Prices and a revised programme showing the earlier Completion Date and the changed Key Dates. The Contractor submits details of his assessment with each quotation
The Contractor submits a quotation or gives his reasons for not doing so within the period for reply.

69. Cl. 35 – Take over
35.1 – The Employer need not take over the works before the Completion Date if it is stated in the Contract Data that he is not willing to do so. Otherwise the Employer takes over the works not later than two weeks after Completion.
35.2 – The Employer may use any part of the works before Completion has been certified. If he does so, he takes over the part of the works when he begins to use it except if the use is
for a reason stated in the Works Information or
to suit the Contractor's method of working.
35.3 – The Project Manager certifies the date upon which the Employer takes over any part of the works and its extent within one week of the date.