This is NEC4 (Engineering and Construction Contract), please show the clause number in the answer. Thank you! -

This is NEC4 (Engineering and Construction Contract), please show the clause number in the answer. Thank you! -

Q:

The project is a 'drive-through' fast food restaurant with much of the construction undertaken off Site in modules. The work has been procured under ECC Option A and secondary Options X2, X6, X7 and X20 are incorporated.

Time is critical and theClientwants the restaurant open as soon as possible. The contract strategy contains both delay damages and a bonus for early Completion.

TheContractorhas just submitted its second programme which shows that planned Completion will be after the Completion Date due to delays in the factories manufacturing the modules. TheProject Managerexpects that theClientwill be extremely concerned by this.

a. What should have occurred before the programme (showing that theContractorwill be late) was submitted? Also, should theProject Manageraccept the programme?

[5 marks]

A few months later theContractorhas brought the project back on track. Its latest programme shows planned Completion prior to the Completion Date. TheClientsees the programme and wants to add in additional landscaping works which will be on the critical path.

b. What would the effect be on planned Completion and the Completion Date by including the additional work and which clauses confirm this?

[3 marks]

TheClientdecides not to instruct the additional work but wants confidence in the earlier Completion by theContractor. This will allow the initial staff training and familiarisation to be planned.

c. Can the Completion Date be brought forward and can this be forced upon theContractor? Is this a compensation event?

[4 marks]

The original Scope stated that theClientwanted to use the restaurant to train staff before Completion. The staff are now on Site much to the annoyance of theContractor. TheContractornotifies a compensation event.

d. Is this a compensation event? Would it be a compensation event if the original Scope did not mention the requirement?

[6 marks]

Towards the end of the project, theContractorhas a number of problems with SubContractors and ultimately the project is two weeks late. The specialist installing point of sale equipment and safes (employed by theClient) has a small window of opportunity when it can do the work. If it does not undertake the work in the next week it will be six months before it is back in the same country.

e. If the specialist does the work after the Completion Date (theContractoris two weeks late) is it a compensation event? What steps might theProject Managertake to mitigate the impact?

[7 marks]