Back to Basics #8 - Acceleration Under NEC 4

Acceleration Under NEC 4 – Back to Basics 8

The NEC4 includes a mechanism whereby the Employer can agree with the Contractor to achieve completion of the Project earlier than it is otherwise contractually bound to.

Unlike the JCT standard forms of contract, the NEC4 separates the date that the Contractor is bound to complete from the date that it plans to. The former of these is the “Completion Date”, whereas the latter is “planned Completion”. “Completion” is what occurs when the work is complete and free of significant defects.

If the Contractor is delayed, then under the compensation event mechanism, if the event delays the works, it may obtain an extension to the time allowed to complete; this is reflected in a change to the Completion Date.

However, compensation events can only make the Completion Date later. If the Employer omits works under a compensation event then, whilst planned Completion may be brought forward, the Completion Date will remain the same. If the Employer wishes to bring the Completion Date forward, it must use the Acceleration provisions to do so.

Either party may propose accelerating measures. If agreed upon, the Project Manager may instruct the Contractor to submit a quotation for the amended Completion Date and any Key Date (Clause 36.1).

Clause 36.2 requires that the Contractor’s quotation should include a revised programme, as well as the “proposed changes to the Prices” (the estimated cost of the accelerating measures).

The Contractor’s quotation may only be accepted or rejected (the Project Manager may not make his own assessment). If the Contractor’s quotation is accepted then the revised programme submitted becomes the latest Accepted Programme (Clause 36.3).

Though the contract does not refer explicitly to Sectional Completion Dates, if Secondary Option Clause X5 is included, then references to works, Completion and the Completion Date will apply also to work within a Section, Sectional Completion and the Sectional Completion Date respectively.

Ramskill Martin’s Team of Experts can assist with any matters of Contract, Commercial issues or any Programming associated with acceleration of the Works.

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