Frequently Asked Questions

We are a client using the NEC4 ECC Option B (priced contract with bill of quantities). If there is no float or time risk allowance and no consideration of the time taken to mobilise the site, what consequence will the contractor face and what should our project manager do in this instance? The first programme was not accepted because there was no float or time risk allowance shown and the contractor had to revise the programme. However, the contractor started work without fixing this issue and the revised programme was late being submitted.

Your project manager should have acted as soon as this happened. The contract requires that float and time risk allowance is shown on each programme issued for acceptance, see clause 31.2. The first thing the project manager should do is to retain 25% of the amount due to the contractor for each assessment until the contractor provides a programme showing the information which the contract requires, see clause 50.5.

In addition, without an accepted programme, it is the project manager that takes the initiative in assessing compensation events. The project manager should make their own assessment of the compensation event, see the last two bullets of clause 64.1. When making that assessment, the project manager does not rely upon the programme provided by the contractor and instead uses their own assessment of the programme for the remaining works to assess the value of the compensation event, see clause 64.2.

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