Frequently Asked Questions

Question
We are the project manager in a recently started NEC4 Engineering and Construction (ECC) Option C (target contract with activity schedule). If we and the contractor agree an acceleration to achieve completion before completion date and we instruct the contractor to provide a quotation, how do we reconcile this with option X6 on bonus for early completion? Will a part of the bonus become part of the quotation for acceleration, or will this bonus then lapse entirely as an additional incentive?

An agreement made under clause 36 on acceleration would have the effect of bringing the completion date forward to an earlier date than it currently is. This is different to the contractor accelerating its work to advance the date by which it expects to achieve completion. The contractor should be motivated to want to achieve completion on or before the completion date to avoid being in breach of clause 30.1 and liable for any delay damages as a result.

If the completion date is moved forward to an earlier date, then all obligations and actions linked to this date will be moved to the earlier date. If secondary option X6 has been selected, any bonus payable to the contractor will only be applicable if the contractor achieves completion before the revised completion date. Damages for delay will also be applicable from the revised completion date.

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