{
  "query": "NEC4 ECC contract quotation acceptance delay impact on critical path UK construction",
  "raw_results": [
    {
      "url": "https://reachback.builtintelligence.com/t/nec4-ecc-change-to-critical-path/22536",
      "title": "NEC4 ECC Change to Critical Path - ReachBack",
      "content": "# NEC4 ECC Change to Critical Path\n\nNEC4 ECC Option A contract. 6 months into 24 month contract. Contractor has submitted a CE for 12 week delay and significant delay costs due to a utility provider taking longer than agreed to complete works. All programmes have been accepted, critical path shown, CE process followed correctly.\n\nCE was agreed and planned completion and completion date moved out 12 weeks. Next programme, critical path is changed and the works elements that the contractor cited as being delayed now aren’t! Can they do this?\n\nAlso, if the contractor finishes ahead of the new planned completion is the Client entitled to any of the CE back? [...] ### Related topics\n\n| Topic |  | Replies | Views | Activity |\n ---  --- \n| NEC ECC: What happens when submitting an impact programme the delay is shown but also show critical activities planned to commence earlier?  Compensation Events | 1 | 474 | 5 June 2020 |\n| NEC ECC: Are we entitled to move Completion Date if we are already planning to finish early?  Compensation Events | 1 | 2241 | 6 April 2018 |\n| NEC ECC: Contractor submitted a programme requesting several weeks beyond Completion Date  Time | 1 | 599 | 30 August 2017 |\n| Correction of a Project Managers Assumption or Acceleration?  NEC3 and NEC4 Contracts | 1 | 130 | 25 October 2024 |\n| NEC ECC: Impact of CE following Contractor Delay on the Completion Date  Time | 2 | 772 | 21 April 2020 | [...] The Contractor is entitled to change its logic and sequence in programme updates and to show planned Completion before the Completion Date. If the programme used to assess the compensation event was corrected then the implemented quote stands. If the Contractor achieves Completion before the Completion Date then that is its benefit.\n\n### Related topics",
      "score": 0.8131201,
      "raw_content": null
    },
    {
      "url": "https://www.gatherinsights.com/en/nec4/response-periods",
      "title": "NEC4 Response Periods: Complete Deadlines Guide",
      "content": "The Contractor submits a quotation for the access delay.\n\n| Element | Defined Cost |\n --- |\n| Extended site establishment (2 weeks) | £38,000 |\n| Additional plant and labour on standby | £44,000 |\n| Programme revision (replanning affected works) | £9,000 |\n| Defined Cost subtotal | £91,000 |\n| Fee (8%) | £7,280 |\n| Total change to Prices | £98,280 |\n\nThe quotation also proposes a two-week extension to the Completion Date, supported by a revised programme showing the access delay on the critical path.\n\n15 April (Day 14 from submission) [...] 15 April (Day 14 from submission)\n\nThe PM's two-week response window expires. The PM has not replied. The Contractor's commercial team identifies this using their deadline tracking and immediately issues a clause 62.6 notification: as the PM has not replied, the quotation of £98,280 plus two-week extension is treated as accepted.\n\n16 April\n\nThe PM contacts the Contractor disputing elements of the cost build. The Contractor's commercial manager refers the PM to the clause 62.6 notification issued the previous day. The quotation is accepted. Any further dispute requires adjudication. Had the Contractor not tracked the PM's two-week deadline, they would almost certainly have accepted the PM's comments, revised the quotation downward, and lost significant commercial ground. [...] ### Payment\n\nThe PM assesses the amount due at each assessment date, with the interval set in Contract Data (typically every four weeks). Under Option Y(UK)2, the due date for payment is one week after the assessment date, with the final date for payment 14 days after the due date — a maximum of 21 days from assessment. Late payment attracts interest under clause 51.3 at the rate stated in Contract Data. UK contracts subject to the Housing Grants, Construction and Regeneration Act 1996 operate with Option Y(UK)2, which sets out payment notices, pay-less notices, and the right to suspend for non-payment alongside the NEC4 payment clauses.\n\n## Worked Example: Access Delay and a Missed Quotation Deadline",
      "score": 0.74273956,
      "raw_content": null
    },
    {
      "url": "https://www.necplanningsolutions.co.uk/post/nec-delay-analysis-and-extension-of-time-the-complete-contractor-guide",
      "title": "NEC Delay Analysis and Extension of Time: Complete Guide",
      "content": "The project manager has three weeks to respond under clause 62.3. They can accept the quotation, request a revised quotation with reasons, or make their own assessment under clause 64. If the project manager makes their own assessment, the contractor's position is significantly weakened. The PM's assessment stands unless formally challenged, and it is typically made using conservative assumptions that favour the employer.\n\nThe assessment uses clause 63.5 in NEC4 (clause 63.3 in NEC3): \"any delay to the Completion Date is assessed as the length of time that, due to the compensation event, planned completion is later than planned completion as shown on the Accepted Programme.\" [...] The contractors who handle NEC delay analysis well treat the dividing date as a commercial anchor. When a compensation event is notified, the accepted programme at that moment is captured immediately. The impact analysis is built against that captured snapshot, not against whatever programme exists when the quotation is eventually produced. This preserves the prospective character of the analysis and keeps the entitlement in the contractor's control. [...] Clause 63.8 (clause 63.6 in NEC3) provides that compensation event assessments are made on the basis that the contractor reacts competently and promptly to the event. This means the assessment assumes reasonable mitigation occurred, whether or not it actually did. If the contractor could have mitigated the delay by re-sequencing, accelerating a non-critical path, or adding resource, the assessment can be reduced to reflect the mitigation that should have taken place. Contractors should include mitigation analysis in their quotations to avoid reductions at assessment.\n\n#### What happens if the accepted programme is out of date when a compensation event is notified?",
      "score": 0.6609831,
      "raw_content": null
    },
    {
      "url": "https://www.youtube.com/watch?v=_lymxkMz7Kc",
      "title": "NEC Contracts - Programmes under ECC and PSC",
      "content": "allows the contractor to come up with a ridiculously over inflated budget price for it and the pm cannot force acceleration so clients keep well away from acceleration instead my top tip is to use clause 62.1 where for each compensation event you can ask for alternative quotations that you can ask for a quotation with and without a delay to the completion date and therefore for each conversation event in discussion with your client you can basically buy pay a little bit more money to avoid losing a little bit of time that's a really good tip if you've got a contract which is seriously program sensitive back to the key aspect of co of the program it's to do with these compensation events that's the clause i've already shown you the assessment that nec 4 makes this a lot clearer nec 4 has [...] compensation event if there are no assumptions stated then the the quotation has to allow for any risk that might come at the contractor if we state assumptions then the quotation is based on those assumptions and only if those assumptions prove to be incorrect that we come back and have another compensation event to look at the effect of those assumptions being incorrect so if the parties really can't work out how much this might delay completion it's possible but messy to have an assumption stated assumption which says this compensation event delays completion by two weeks you write that into your assumption you assess it as a delay of two weeks and then we wait and see and find out how much it really did delay completion and then if it delays completion by it turns out it delays [...] see if you come to a session on compensation events that nec is radically different and it has forecasts we have to forecast the effect of the event and the dividing date is that dividing date between actual and forecast and we said to you that we've already the big difference now in nec 4 there's a new clause at the end of 31.3 if the pm is useless and just doesn't respond to a submitted program the contractor may now give a little prompt a little tap on the shoulder and say you're flipping useless you haven't responded within two weeks you numpty that triggers another week and if the pm doesn't respond within that further week the the program that they have submitted is now treated as accepted in other words deemed acceptance that mechanism is not there there is no deemed acceptance of",
      "score": 0.6304352,
      "raw_content": null
    },
    {
      "url": "https://www.fenwickelliott.com/research-insight/newsletters/insight/94",
      "title": "NEC Accepted Programmes: A Practical Guide - Fenwick Elliott",
      "content": "Float is found in all programmes.  In its simplest form, it is a gap between the activities that allows them to be delayed without causing critical delay to the end date of the programme.  However, terminal float is specifically identified in the NEC (as opposed to other contract forms) as being “owned” by the Contractor.  This is important because, if there is a compensation event that impacts on the critical path and is at the Employer’s risk, the Contractor will keep the benefit of the terminal float.9 (See Figure 2.)\n\nFigure 2 - Float\n\nFigure 2 - Float\n\nFigure 2 - Float [...] ### How do I deal with delays to the project?\n\nWhere you need to submit a quotation for a compensation event, this should include the assessment of (prospective) delay impact by the Contractor.  As set out above, it is important to get the dividing date right and also to use the Accepted Programme that was “current at the dividing date”.12\n\nTime impact is usually shown on the programme by adding new activities to model the delay event which will include new or extra TRA if appropriate.  An example of how to show such a delay is set out below (Figure 5):\n\nFigure 5 – Time impact\n\nFigure 5 – Time impact\n\nFigure 5 – Time impact\n\n## Common Problems [...] ### What happens if the Project Manager does not respond?\n\nIf the Project Manager does not respond within two weeks, then there is a useful deeming provision provided within the NEC4 which, unfortunately, is not present in the NEC3.  After two weeks, the Contractor can submit a notice of failure to accept or reject the Accepted Programme under clause 31.3.  If the Project Manager remains silent after 1 week, then there is deemed acceptance of the programme.\n\nA flow chart showing the procedure for accepting the Accepted Programme is set out below (Figure 4) and applies to each revision as well.\n\nFigure 4 – Clause 31.3 Process – The Accepted Programme\n\nFigure 4 – Clause 31.3 Process – The Accepted Programme\n\nFigure 4 – Clause 31.3 Process – The Accepted Programme",
      "score": 0.5622973,
      "raw_content": null
    }
  ],
  "formatted": "Source: NEC4 ECC Change to Critical Path - ReachBack\nURL: https://reachback.builtintelligence.com/t/nec4-ecc-change-to-critical-path/22536\n# NEC4 ECC Change to Critical Path NEC4 ECC Option A contract. 6 months into 24 month contract. Contractor has submitted a CE for 12 week delay and significant delay costs due to a utility provider taking longer than agreed to complete works. All programmes have been accepted, critical path shown, CE process followed correctly. CE was agreed and planned completion and completion date moved out 12 weeks. Next programme, critical path is changed and the works elements that the contractor cited as being delayed now aren’t! Can they do this? Also, if the contractor finishes ahead of the new planned completion is the Client entitled to any of the CE back? [...] ### Related topics | Topic | | Replies | Views | Activity | --- --- | NEC ECC: What happens when submitting an impact programme the delay is shown but also show critical activities planned to commence earlier? Compensation Events | 1 | 474 | 5 June 2020 | | NEC ECC: Are we entitled to move Completion Date if we are already planning to finish early? Compensation Events | 1 | 2241 | 6 April 2018 | | NEC ECC: Contractor submitted a programme requesting several weeks beyond Completion Date Time | 1 | 599 | 30 August 2017 | | Correction of a Project Managers Assumption or Acceleration? NEC3 and NEC4 Contracts | 1 | 130 | 25 October 2024 | | NEC ECC: Impact of CE following Contractor Delay on the Completion Date Time | 2 | 772 | 21 April 2020 | [...] The Contractor is entitled to change its logic and sequence in programme updates and to show planned Completion before the Completion Date. If the programme used to assess the compensation event was corrected then the implemented quote stands. If the Contractor achieves Completion before the Completion Date then that is its benefit. ### Related topics\n\n---\n\nSource: NEC4 Response Periods: Complete Deadlines Guide\nURL: https://www.gatherinsights.com/en/nec4/response-periods\nThe Contractor submits a quotation for the access delay. | Element | Defined Cost | --- | | Extended site establishment (2 weeks) | £38,000 | | Additional plant and labour on standby | £44,000 | | Programme revision (replanning affected works) | £9,000 | | Defined Cost subtotal | £91,000 | | Fee (8%) | £7,280 | | Total change to Prices | £98,280 | The quotation also proposes a two-week extension to the Completion Date, supported by a revised programme showing the access delay on the critical path. 15 April (Day 14 from submission) [...] 15 April (Day 14 from submission) The PM's two-week response window expires. The PM has not replied. The Contractor's commercial team identifies this using their deadline tracking and immediately issues a clause 62.6 notification: as the PM has not replied, the quotation of £98,280 plus two-week extension is treated as accepted. 16 April The PM contacts the Contractor disputing elements of the cost build. The Contractor's commercial manager refers the PM to the clause 62.6 notification issued the previous day. The quotation is accepted. Any further dispute requires adjudication. Had the Contractor not tracked the PM's two-week deadline, they would almost certainly have accepted the PM's comments, revised the quotation downward, and lost significant commercial ground. [...] ### Payment The PM assesses the amount due at each assessment date, with the interval set in Contract Data (typically every four weeks). Under Option Y(UK)2, the due date for payment is one week after the assessment date, with the final date for payment 14 days after the due date — a maximum of 21 days from assessment. Late payment attracts interest under clause 51.3 at the rate stated in Contract Data. UK contracts subject to the Housing Grants, Construction and Regen\n\n---\n\nSource: NEC Delay Analysis and Extension of Time: Complete Guide\nURL: https://www.necplanningsolutions.co.uk/post/nec-delay-analysis-and-extension-of-time-the-complete-contractor-guide\nThe project manager has three weeks to respond under clause 62.3. They can accept the quotation, request a revised quotation with reasons, or make their own assessment under clause 64. If the project manager makes their own assessment, the contractor's position is significantly weakened. The PM's assessment stands unless formally challenged, and it is typically made using conservative assumptions that favour the employer. The assessment uses clause 63.5 in NEC4 (clause 63.3 in NEC3): \"any delay to the Completion Date is assessed as the length of time that, due to the compensation event, planned completion is later than planned completion as shown on the Accepted Programme.\" [...] The contractors who handle NEC delay analysis well treat the dividing date as a commercial anchor. When a compensation event is notified, the accepted programme at that moment is captured immediately. The impact analysis is built against that captured snapshot, not against whatever programme exists when the quotation is eventually produced. This preserves the prospective character of the analysis and keeps the entitlement in the contractor's control. [...] Clause 63.8 (clause 63.6 in NEC3) provides that compensation event assessments are made on the basis that the contractor reacts competently and promptly to the event. This means the assessment assumes reasonable mitigation occurred, whether or not it actually did. If the contractor could have mitigated the delay by re-sequencing, accelerating a non-critical path, or adding resource, the assessment can be reduced to reflect the mitigation that should have taken place. Contractors should include mitigation analysis in their quotations to avoid reductions at assessment. #### What happens if the accepted programme is out of date when a compensati\n\n---\n\nSource: NEC Contracts - Programmes under ECC and PSC\nURL: https://www.youtube.com/watch?v=_lymxkMz7Kc\nallows the contractor to come up with a ridiculously over inflated budget price for it and the pm cannot force acceleration so clients keep well away from acceleration instead my top tip is to use clause 62.1 where for each compensation event you can ask for alternative quotations that you can ask for a quotation with and without a delay to the completion date and therefore for each conversation event in discussion with your client you can basically buy pay a little bit more money to avoid losing a little bit of time that's a really good tip if you've got a contract which is seriously program sensitive back to the key aspect of co of the program it's to do with these compensation events that's the clause i've already shown you the assessment that nec 4 makes this a lot clearer nec 4 has [...] compensation event if there are no assumptions stated then the the quotation has to allow for any risk that might come at the contractor if we state assumptions then the quotation is based on those assumptions and only if those assumptions prove to be incorrect that we come back and have another compensation event to look at the effect of those assumptions being incorrect so if the parties really can't work out how much this might delay completion it's possible but messy to have an assumption stated assumption which says this compensation event delays completion by two weeks you write that into your assumption you assess it as a delay of two weeks and then we wait and see and find out how much it really did delay completion and then if it delays completion by it turns out it delays [...] see if you come to a session on compensation events that nec is radically different and it has forecasts we have to forecast the effect of the event and the dividing date is that dividing date betw\n\n---\n\nSource: NEC Accepted Programmes: A Practical Guide - Fenwick Elliott\nURL: https://www.fenwickelliott.com/research-insight/newsletters/insight/94\nFloat is found in all programmes. In its simplest form, it is a gap between the activities that allows them to be delayed without causing critical delay to the end date of the programme. However, terminal float is specifically identified in the NEC (as opposed to other contract forms) as being “owned” by the Contractor. This is important because, if there is a compensation event that impacts on the critical path and is at the Employer’s risk, the Contractor will keep the benefit of the terminal float.9 (See Figure 2.) Figure 2 - Float Figure 2 - Float Figure 2 - Float [...] ### How do I deal with delays to the project? Where you need to submit a quotation for a compensation event, this should include the assessment of (prospective) delay impact by the Contractor. As set out above, it is important to get the dividing date right and also to use the Accepted Programme that was “current at the dividing date”.12 Time impact is usually shown on the programme by adding new activities to model the delay event which will include new or extra TRA if appropriate. An example of how to show such a delay is set out below (Figure 5): Figure 5 – Time impact Figure 5 – Time impact Figure 5 – Time impact ## Common Problems [...] ### What happens if the Project Manager does not respond? If the Project Manager does not respond within two weeks, then there is a useful deeming provision provided within the NEC4 which, unfortunately, is not present in the NEC3. After two weeks, the Contractor can submit a notice of failure to accept or reject the Accepted Programme under clause 31.3. If the Project Manager remains silent after 1 week, then there is deemed acceptance of the programme. A flow chart showing the procedure for accepting the Accepted Programme is set out below (Figure 4) and applie"
}