We are a project manager preparing the contract data for an NEC4 ECC Option A (priced contract with activity schedule) and need to calculate the delay damages for secondary option X7. We can estimate likely costs, however, one cost would only impact if the delay is of a certain length. Our client is renting temporary accommodation with some float (3 months) built into the lease. Should delay exceed these 3 months then they will incur additional cost as a result of the delay as they will have to extend the lease. Are we able to add this into the delay damages and so state that after 3 months delay the damages increase?
Yes, you can do that. As with all entries in the contract data, it should be clear in the way you write it, so that no misunderstandings occur if you need to use it. So, it should say something like £x per day for the first y days of delay and £z per day thereafter.