MTRC NEC4 Training

Module 4 – Time and the

Programme
Ian Heaphy & Daniel Cheung making the difference

October 2021

making the difference

 Turner & Townsend Confidential

Training modules

Module Module Module Module Module

One Two Three Four Five

Roles &
responsibilities Compensation Time and the
Precontract Commercial
and risk events programme
management

• Contract • What are • Payment process

• Role of the
selection compensation • Contract dates • PWDD
Project Manager
• Main and events • The programme • Defined Cost
& Supervisor
secondary • The • Delay • Schedule of Cost
• Contractor’s
option selection compensation assessment Components
obligations
• Contents of a event process • Acceleration • Reporting
• Risk
contract • Assessment and • Completion and • Title
Management
• Tender implementation take over • Contractor’s
assessment proposals

Turner & Townsend MTRC NEC4 Level 2 – Module 3 2

 Turner & Townsend Confidential

Training modules

Module Module Module Module Module

One Two Three Four Five

Roles &
responsibilities Compensation Time and the
Precontract Commercial
and risk events programme
management

• Contract • What are • Payment process

• Role of the
selection compensation • Contract dates • PWDD
Project Manager
• Main and events • The programme • Defined Cost
& Supervisor
secondary • The • Delay • Schedule of Cost
• Contractor’s
option selection compensation assessment Components
obligations
• Contents of a event process • Acceleration • Reporting
• Risk
contract • Assessment and • Completion and • Title
Management
• Tender implementation take over • Contractor’s
assessment proposals

Turner & Townsend MTRC NEC4 Level 2 – Module 4 3

 Turner & Townsend Confidential

Agenda – Module 4 time and the

programme

■ Important contract dates

■ The programme
■ Delay assessment including ownership of float and time risk
allowance
■ Acceleration
■ Completion and take over
■ Q&A session

Turner & Townsend MTRC NEC4 Level 2 – Module 4 4

Important
Contract Dates

Module 4 – Time and the

Programme

making the difference 5

 Turner & Townsend Confidential

NEC4 ECC v PSC

■ The following slides are based on the NEC4 ECC

■ The content is the same in the PSC, subject to changes in
terminology
■ Project Manager = Service Manager
■ Contractor = Consultant
■ works = service
■ Any other differences are specifically identified

Turner & Townsend MTRC NEC4 Level 2 – Module 4 6

 Turner & Townsend Confidential

Contract dates

■ Contract Date – the date the contract came into existence (cl
11.2(4))
■ starting date – the date the Contractor starts work under the contract
■ access date(s) – the date by which the Client will provide access to
and use of the parts of the Site needed by the Contractor (in the PSC
access is provided to people, places and things – see later slide)
■ Key Date(s) – the date by which the Contractor must achieve a
Condition stated for the works
■ Completion Date – the date by which the Contractor must achieve
completion by
■ Completion Date is the completion date identified in the Contract
Data either by the Client or the Contractor, unless later changed in
accordance with the contract
■ planned Completion is the date the Contractor is planning to
complete the works by as shown on the Accepted Programme
■ date of Completion is the date that Completion is achieved
Turner & Townsend MTRC NEC4 Level 2 – Module 4 7
 Turner & Townsend Confidential

Contract dates

Contract Date
planned Completion
starting date (by the Contractor) The Completion Date – is the –
completion date – unless
access date(s) otherwise changed in accordance
with this contract

* * * * * *

* Key Dates * date of Completion

(decided by the
Project Manager)
Turner & Townsend MTRC NEC4 Level 2 – Module 4 8
 Turner & Townsend Confidential

Time obligations - ECC

■ Contractor does not start work on Site until first access date and
does work so that Completion is on or before Completion Date (cl
30.1)
■ Project Manager decides date of Completion and certifies it within
one week (cl 30.2)
■ Completion Date can only be changed by Project Manager as a
result of compensation events, acceleration or accepting a Defect
■ The Client allows access to and use of each part of the Site to the
Contractor which is necessary for the work included in the contact
(cl 33.1)
■ Access and use is allowed on or before later of its access date and
date for access shown on the Accepted Programme (cl 34.1)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 9

 Turner & Townsend Confidential

Time obligations - PSC

■ Consultant does not start work until the starting date and does
work so that Completion is on or before Completion Date (cl 30.1)
■ The Client provides access to a person, place or thing to the
Consultant as stated in the Contract Data on before the later of
its access date and date for access shown on the Accepted
Programme (cl 33.1)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 10

 Turner & Townsend Confidential

Completion

■ If the Contractor fails to achieve Completion on or before the

Completion Date they will be in breach of contract and liable to
pay damages to the Client
■ If secondary Option X7 delay damages has been selected the
damages payable as result of a failure to achieve Completion on
or before the Completion Date will be a predetermined value
■ Under the law of Hong Kong SAR such damages will need to be a
reasonable pre-estimate of the loss the Client will suffer as a
result of the late Completion of the works and a calculation to
support the value included in X5 should be produced
■ A positive incentive for the Contractor to complete the works in
advance of the Completion Date can be included via the selection
of Secondary Option X6 bonus for early Completion, the value of
the bonus will be a commercial decision for the Client

Turner & Townsend MTRC NEC4 Level 2 – Module 4 11

 Turner & Townsend Confidential

Sectional Completion

■ If secondary Option X5 has been selected, sectional Completion

Dates can be included in the contract
■ The Client will identify the sections and their relevant Completion
Dates in the Contract Data
■ Any reference in the contract to the works, Completion and
Completion Date will apply to any section of the works unless the
contract specifically refers to ”the whole of the works”
■ Secondary Option X6 bonus for early Completion and secondary
Option X7 delay damages can be applied to each section of the
works, if X5 has been selected as well as the whole of the works
■ Sectional Completion Dates, as the Completion Date for the whole
of the works can only be changed by Project Manager as a result
of compensation events, acceleration or accepting a Defect

Turner & Townsend MTRC NEC4 Level 2 – Module 4 12

 Turner & Townsend Confidential

Key Dates

■ Key Dates are a way of dealing with interfaces between the work
of the Contractor and the work of Others, including other
contractors engaged by the Client
■ key dates are set out in the Contract Data long with a condition
which the works must achieve by the relevant key date
■ key dates and conditions can be changed in accordance with the
contract with the defined terms Key Date and Condition referring
to the date / condition in the Contract Data or as changed under
the contract
■ Key Dates and Conditions can be changed by the Project Manager
■ giving an instruction under clause 14.3, which will be a
compensation event (cl 60.1(4)) or
■ due to a compensation event, acceleration or accepting a
Defect

Turner & Townsend MTRC NEC4 Level 2 – Module 4 13

 Turner & Townsend Confidential

Key Dates

■ If the Project Manager decides that the work does not meet the
Condition stated for a Key Date by the date stated and, as a
result, the Client incurs additional cost either
■ in carrying out work or
■ by paying an additional amount to Others in carrying out work
on the same project, the additional cost which the Client has paid
or will incur is paid by the Contractor
■ The Project Manager assesses the additional cost within four
weeks of the date when the Condition for the Key Date is met (cl
25.3)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 14

 Turner & Townsend Confidential

Key Dates v sectional Completion Dates

■ The damages for a failure to meet a Key Date are general

damages – as incurred or to be incurred
■ Damages for a failure to meet a Sectional Completion Date can
be general damages or if secondary Option X7 is selected
liquidated damages
■ There is no take over by the Client following a Key Date, the
Contractor will remain responsible for the works before and after
a Key Date whereas after Completion the Client must take over
the works
■ The Project Manager has the power to change a Key Date and this
can include advancing it to an earlier date
■ A Completion Date can only be advanced by the mutual
agreement of the Project Manager and Contractor as a result of
either accepting a Defect or agreeing acceleration (see later slide)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 15

The
Programme

Module 4 – Time and the

Programme

making the difference 16

 Turner & Townsend Confidential

Management of time

■ NEC promotes the importance of time

■ Management of time = management of cost
■ Programme is at the heart of the NEC4
■ Joint management tool – contains the work of the Contractor and
interfaces / actions of the Client and Others necessary for the
Contractor to achieve Completion
■ Primary functions
■ Monitor progress
■ Identify risks to time / potential delaying events and develop
mitigating strategies
■ Evaluate compensation events with a delay or disruptive effect

Turner & Townsend MTRC NEC4 Level 2 – Module 4 17

 Turner & Townsend Confidential

Accepted Programme - contents

The Contractor shows on each programme submitted for acceptance

■ starting date, access dates, Key Dates & Completion Date(s)
■ planned Completion – the date the Contractor is planning to
complete the works by
■ the order and timing of the operations which the Contractor plans
to do to Provide the Works
■ the order and timing of the work of the Client and Others as last
agreed with them by the Contractor or as stated in the Scope
■ the dates when the Contractor plans to meet each Condition
stated for Key Dates and to complete other work needed to allow
the Client and Others to do their work,

Turner & Townsend MTRC NEC4 Level 2 – Module 4 18

 Turner & Townsend Confidential

Accepted Programme - contents

The Contractor shows on each programme submitted for acceptance

cont…
■ provisions for
■ float,
■ time risk allowances,

Turner & Townsend MTRC NEC4 Level 2 – Module 4 19

 Turner & Townsend Confidential

Time risk allowance (TRA)

■ Allowance for the time risk the Contractor carries under the
contract must be shown on the programme
■ Demonstrate that the Contractor’s programme is realistic

Turner & Townsend MTRC NEC4 Level 2 – Module 4 20

 Turner & Townsend Confidential

Case study 1 - time risk allowances

■ Who owns the time risk allowance?

■ The Contractor owns the time risk allowance and it cannot be
used to mitigate the effects of delay caused by compensation
events
■ How should the time risk allowance be shown on the programme?
■ Separate activity bars
■ Information column
■ How should it be applied?
■ Per activity
■ Group of activities
■ Terminal item

Turner & Townsend MTRC NEC4 Level 2 – Module 4 21

 Turner & Townsend Confidential

Accepted Programme - contents

The Contractor shows on each programme submitted for acceptance

cont…
■ provisions for
■ float,
■ time risk allowances,
■ health and safety requirements and
■ the procedures set out in the contract
■ the dates when, in order to Provide the Works in accordance with
the programme, the Contractor will need
■ access to a part of the Site if later than the access date,
■ acceptances,
■ Plant and Materials and other things to be provided by the
Client and
■ information from Others
Turner & Townsend MTRC NEC4 Level 2 – Module 4 22
 Turner & Townsend Confidential

Accepted Programme - contents

The Contractor shows on each programme submitted for acceptance

cont…
■ for each operation a statement of how the Contractor plans to do
the work identifying the principal Equipment and other resources
which will be used and
■ other information which the Scope requires

■ Programme is issued for acceptance in the form stated in the

Scope

■ The programme will be be a collection of documents not just a

gantt chart

Turner & Townsend MTRC NEC4 Level 2 – Module 4 23

 Turner & Townsend Confidential

Accepted Programme – acceptance

■ Project Manager has two weeks to accept or not accept the

programme
■ Reasons for non acceptance
■ the Contractor’s plans which it shows are not practicable,
■ it does not show the information which this contract requires,
■ it does not represent the Contractor’s plans realistically or
■ it does not comply with the Scope
■ If the Project Manager fails to reply to a programme submitted by
the Contractor for acceptance within the time allowed, the
Contractor may inform the Project Manager of that failure. If
failure continues for a further week it is treated as acceptance by
the Project Manager of the programme (Cl 31.3)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 24

 Turner & Townsend Confidential

Revised programmes

■ All programmes have a very short useful life, because events

occur that mean that they regularly become out of date
■ NEC contracts require the programme to be updated regularly
■ Accepted Programme is the latest programme accepted by the
Project Manager and supersedes all previous Accepted
Programmes (cl 11.2(1))
■ First Accepted Programme can be identified in the Contract Data
part two or if not a programme has to be submitted by the
Contractor for acceptance by the Project Manager within a set of
amount of weeks after the Contract Date (cl 31.1)
■ If no programme is identified in the Contract Data part two one
quarter (25%) of the Price for Work Done to Date is withheld
form the Contractor until a first programme is submitted for
acceptance containing all the information the contract requires
(cl 50.5)
Turner & Townsend MTRC NEC4 Level 2 – Module 4 25
 Turner & Townsend Confidential

Revised programmes

■ Revised programmes are submitted

■ At intervals stated in the Contract Data (commonly monthly)
■ When the Contractor chooses to
■ When the Project Manager instructs (cl 32.2)
■ Has to capture all issues that have or will affect progress
■ the actual progress achieved on each operation and its effect
upon the timing of the work,
■ how the Contractor plans to deal with any delays and to correct
notified Defects and
■ any other changes which the Contractor proposes to make to
the Accepted Programme
■ Substantial efforts and resources are required to comply with the
contract

Turner & Townsend MTRC NEC4 Level 2 – Module 4 26

 Turner & Townsend Confidential

Case Study 2 – the programme

■ Is acceptance of a programme a condition precedent for the

Contractor to undertake the works?
■ Does the Contractor have to Provide the Works in accordance with
the Accepted Programme i.e. can they change their methodology
as the works progress?
■ Can the Project Manager not accept the programme for any
reason?
■ Does the Contractor have to show the critical path in the
programme?
■ What happens if the Project Manager identifies an error in the
Accepted Programme i.e. a time frame stated for an action of the
Client is shorter than the time frame for the action stated in the
Scope?
■ Would you expect a Consultant to provide programmes with the
level of detail required in the PSC?
Turner & Townsend MTRC NEC4 Level 2 – Module 4 27
 Turner & Townsend Confidential

Case Study 2 – the programme

■ Can the Project Manager accept a programme with caveats?

■ Can the Project Manager require the Contractor to change their
programme and / or the order and timing of the works shown
within it?
■ How can the Project Manager instruct the Contractor how they
should undertake the order and timing of the works?

Turner & Townsend MTRC NEC4 Level 2 – Module 4 28

Delay
Assessment

Module 4 – Time and the

Programme

making the difference 29

 Turner & Townsend Confidential

Delay assessment

■ We will now consider how the Contractor’s entitlement to delay

will be assessed as a result of a compensation event in doing so
we will also consider
■ Float
■ Terminal float
■ Time risk allowances
■ Delay recovery measures

Turner & Townsend MTRC NEC4 Level 2 – Module 4 30

 Turner & Townsend Confidential

Case study 3 – who owns the float

■ Who owns any free float (not terminal float) in the programme?

Turner & Townsend MTRC NEC4 Level 2 – Module 4 31

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Free Float
Operation 3 4 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 32

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Free Float
Operation 3 4 weeks
Operation 4
Operation 5

Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 33

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Free Float
Operation 3 2 weeks
Operation 4
Operation 5

Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 34

 Turner & Townsend Confidential

Assessment of delay

■ A 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 shown on the Accepted Programme
current at the dividing date.
The assessment takes into account
■ any delay caused by the compensation event already in the
Accepted Programme and
■ events which have happened between the date of the Accepted
Programme and the dividing date. (Cl 63.5)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 35

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Free Float
Operation 3 4 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 36

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2 Contractor’s delay

Operation 3
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 37

 Turner & Townsend Confidential

Float

Compensation Completion Date

event

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2 Contractor’s delay

Operation 3
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 38

 Turner & Townsend Confidential

Float

Compensation Completion Date

event

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operation 1
Operation 2 Contractor’s delay
2 weeks
CE 1
Operation 3
Operation 4
Operation 5

Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 39

 Turner & Townsend Confidential

Case study 4 – who owns the float

■ Who owns any terminal float in the programme?

Turner & Townsend MTRC NEC4 Level 2 – Module 4 40

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Operation 3 Terminal Float
4 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 41

 Turner & Townsend Confidential

Float

Compensation Completion Date

event

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Operation 3 Terminal Float
4 weeks
Operation 4
Operation 5

Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 42

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Terminal
Operation 3 Float
2 weeks
CE 1
Operation 4
Operation 5

Non-critical
Critical 2 weeks

Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 43

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operation 1
Operation 2
Terminal 2 weeks
Operation 3 Float
2 weeks
CE 1
Operation 4
Operation 5

Non-critical
Critical 2 weeks

Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 44

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operation 1
Operation 2
Operation 3 Terminal Float
4 weeks
CE 1
Operation 4
Operation 5

Non-critical
Critical 2 weeks

Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 45

 Turner & Townsend Confidential

Assessment of delay

■ A 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 shown on the Accepted Programme
current at the dividing date.
The assessment takes into account
■ any delay caused by the compensation event already in the
Accepted Programme and
■ events which have happened between the date of the Accepted
Programme and the dividing date. (Cl 63.5)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 46

 Turner & Townsend Confidential

Case study 5 – Contractor delay

■ What happens when the Contractor is in delay and is planning to

complete the works late?

Turner & Townsend MTRC NEC4 Level 2 – Module 4 47

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2 Terminal Delay
Operation 3 4 weeks

Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 48

 Turner & Townsend Confidential

Float

Compensation Completion Date

event

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2 Terminal Delay
Operation 3 4 weeks

Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 49

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operation 1
Operation 2
Operation 3 Terminal Delay
4 weeks
CE 1
Operation 4
Operation 5
2 weeks
Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 50

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operation 1
Operation 2
Operation 3
CE 1 2 weeks

Operation 4
Operation 5
2 weeks
Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 51

 Turner & Townsend Confidential

Float

Compensation Completion Date

event – 2 weeks

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Operation 1
Operation 2
Operation 3
CE 1
Operation 4
Operation 5 Terminal Delay
4 weeks

Non-critical
Critical
Compensation event

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 52

 Turner & Townsend Confidential

Case study 6 – negative compensation events

■ What happens if there is a negative compensation event, for

example the Scope is changed to omit some work?

Turner & Townsend MTRC NEC4 Level 2 – Module 4 53

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Operation 3 Terminal Float
4 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 54

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Operation 3 Terminal Float
4 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 55

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Operation 3 Terminal Float
4 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 56

 Turner & Townsend Confidential

Float

Completion Date

Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Operation 1
Operation 2
Operation 3 Terminal Float
6 weeks
Operation 4
Operation 5

Non-critical
Critical

Planned Completion

Turner & Townsend MTRC NEC4 Level 2 – Module 4 57

 Turner & Townsend Confidential

Assessment of delay

■ A 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 shown on the Accepted Programme
current at the dividing date.
The assessment takes into account
■ any delay caused by the compensation event already in the
Accepted Programme and
■ events which have happened between the date of the Accepted
Programme and the dividing date. (Cl 63.5)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 58

 Turner & Townsend Confidential

Assessment of delay

■ Delay to any sectional Completion Date is assessed in the same

way as a delay the Completion Date
■ A Delay to a Key Date is assessed as the length of time that, due
to the compensation event, the planned date when the Condition
stated for a Key Date will be met is later that the date shown on
the Accepted Programme current at the dividing date
The assessment takes into account
■ any delay caused by the compensation event already in the
Accepted Programme and
■ events which have happened between the date of the Accepted
Programme and the dividing date. (Cl 63.5)

Turner & Townsend MTRC NEC4 Level 2 – Module 4 59

 Turner & Townsend Confidential

Delay assessment

■ Compensation event process allows for delay recovery measures

to be instigated
■ The Project Manager can enter into discussion with the Contractor
about alternative ways of dealing with the compensation event
and can ask for alternative quotes (62.1)
■ This process allows for different options for dealing with the
compensation event to be considered such as mitigating cost or
mitigating delay
■ This could include considering delay recovery measures and
instructing quotations be prepared on this basis
■ Contractor has to submit the required quotations and can offer
further alternatives

Turner & Townsend MTRC NEC4 Level 2 – Module 3 60

 Turner & Townsend Confidential

Delay assessment

■ To support delay recovery measures instructions changing the

Scope could be issued – if required – which in themselves would
be compensation events but the Contractor would not be entitled
to the same costs and time effects twice
■ If the Project Manager decides that the effects of a compensation
event are too uncertain they can state an assumption
■ The assessment of the compensation event is then based on
these assumptions
■ If the assumption turns out to be incorrect the Project Manager
notifies a correction
■ This leads to the award of a new compensation event for the
changed effect (60.1(17))
■ However, as with all compensation events there will not be a
negative change to the Completion Date(s) or Key Dates

Turner & Townsend MTRC NEC4 Level 2 – Module 3 61

 Turner & Townsend Confidential

Quotation

■ If the Contractor did not give an early warning which an

experienced contractor could have given the event is assessed as
if they had given the early warning
■ Assessment of the effect of a compensation event includes risk
allowance for cost and time for matters which have a significant
chance of occurring and are not compensation events (cl 63.8)
■ Assessment of the effect of a compensation event is based on the
assumption that the Contractor reacts promptly and competently
to the event and that any Defined Cost and time due to the event
are reasonably incurred (cl 63.9)

Turner & Townsend MTRC NEC4 Level 2 – Module 3 62

Acceleration

Module 4 – Time and the

Programme

making the difference 63

 Turner & Townsend Confidential

Acceleration

■ Acceleration under the NEC4 is an agreement to bring forward the

Completion Date(s) to an earlier point in time
■ Acceleration is not a way of instructing the Contractor to mitigate
its own delays, that obligation already exists and should be driven
by the commercial driver of damages for breach of contract
■ Acceleration can only be implemented by the mutual agreement
of the Project Manager (on behalf of the Client) and the
Contractor
■ Either the Project Manager or Contractor can propose acceleration
to the other and either can agree to consider it or to reject it
■ If the Project Manager and Contractor are prepared to consider
acceleration the Contractor provides a quotation

Turner & Townsend MTRC NEC4 Level 2 – Module 4 64

 Turner & Townsend Confidential

Acceleration

■ The quotation comprises proposed changes to the Prices and a

revised programme showing the earlier Completion Date and any
changes to the Key Dates
■ The change to the Prices will be assessed by the Contractor on a
commercial basis, as a failure to achieve Completion on or before
the earlier Completion Date will be a breach of contract for which
they will be liable for damages
■ If the quotation is acceptable the Project Manager changes the
Prices, Completion Date(s) and Key Dates accordingly and
accepts the revised programme
■ Note that Key Dates can be changed unilaterally by the
instruction of the Project Manager under clause 14.3, which will
be a compensation event (cl 60.1(4))

Turner & Townsend MTRC NEC4 Level 2 – Module 4 65

Completion and
take over

Module 4 – Time and the

Programme

making the difference 66

 Turner & Townsend Confidential

Completion

■ Project Manager decides date of Completion and certifies it within

one week (30.2)
■ Completion is when the Contractor has
■ done all the work which the Scope states is to be done by the
Completion Date and
■ corrected notified Defects which would have prevented the
Client from using the works or Others from doing their work.
If the work which the Contractor is to do by the Completion Date
is not stated in the Scope, Completion is when the Contractor has
done all the work necessary for the Client to use the works and
for Others to do their work (cl 11.2(2))
■ Completion should be clearly defined in the Scope at the
Contract Date

Turner & Townsend MTRC NEC4 Level 2 – Module 4 67

 Turner & Townsend Confidential

Take Over

■ The Client takes over no later than two weeks after Completion
(cl 35.1)
■ The Client need not take over the works before the Completion
Date if stated in the Contract Data (cl 35.1)
■ The Client may use any part of the works before Completion and
if it does it takes over on the date that it uses it. This will be a
compensation event, unless
■ the use is for a reason stated in the Scope,
■ to suit the Contractor’s method of working or
■ the Completion Date has passed (cl 35.2)
■ The Project Manager certifies the date the Client takes over and
its extent within one week of the date (cl 35.3)
■ Note there is no take over in the PSC as there is no physical
works

Turner & Townsend MTRC NEC4 Level 2 – Module 4 68

 Turner & Townsend Confidential

Q&A and Feedback

Turner & Townsend MTRC NEC4 Level 2 – Module 4 69

Turner & Townsend Limited
Unit 201
2nd Floor, Pioneer Place
33 Hoi Yuen Road
Kwun Tong
Kowloon
Hong Kong

t: + (852) 2834 6122

e: [email protected]
www.turnerandtownsend.com

© Turner & Townsend Limited. This content is for general information purposes only and does not purport to constitute professional advice. We do not make any
representation or give any warranty, express or implied, and shall not be liable for any losses or damages whatsoever, arising from reliance on information contained in this
document.

It must not be made available or copied or otherwise quoted or referred to in whole or in part in any way, including orally, to any other party without our express written
permission and we accept no liability of whatsoever nature for any use by any other party.