Civil Engineering Reference
In-Depth Information
20
24
Float
Planned
Completion
Completion
Date
Compensation Event
6 weeks
4 weeks
float retained
24
26
30
Completion
Date
New Planned
Completion
New Completion
Date
Figure 5.1
Illustration of the float.
which uses up the float, it becomes critical. If the contractor then causes a delay to that
activity, the contractor is likely to move into being in culpable delay. In that example,
the employer acquires the benefit of the float by getting to it first.
Alternatively, if the contractor's delay happens first, using up float then an instruc-
tionisissuedbytheemployeroncethatactivityhasbecomecritical,thatinstruction
will have caused a delay to the planned completion date and therefore will trigger an
extension of time.
heissueinbothofthesescenarioswillbehowtoprovethesequenceofeventsand
what state the programme was in at the relevant times.
IntheNEC3,theContractoristosubmitrevisedprogrammesandissueearlywarn-
ing notices of any matters which could cause delay to completion. This prospective
analysisofthedelaymightmakeiteasiertoprovethesequenceofeventsthanina
contract where this is not done and the analysis is left to be carried out retrospectively
at the end. Issuing the revised programmes and giving the required notices could in
such a contract protect the Contractor's entitlement to extension of time. These will
show if the Contractor has been eating into the float and if activities have become
critical as a result.
Itmightbepossibletomakeanargumentinrelationtoloat,evenifthecontract
does not have provisions like those in the NEC3. The argument would be that if the
contractor gives notice that a delay is likely which will use up float rendering certain
activities critical, that might be sufficient to put the employer on notice that any sub-
sequent change by him will have an effect on the completion date, so that it is that
change which is the cause of delay (the float having effectively been pre-booked by
the contractor giving notice of this).
The Contractor is to show on each programme submitted for acceptance any provi-
sions for time risk allowances (clause 31.2). This is listed separately from the require-
ment to show float so each is meant to be identifiable on the programme.
According to the NEC3 Guidance Notes, the Contractor's time risk allowances
are to be shown as allowances attached to the duration of each activity or to the
