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Forensic Claims Analysis

NEC Target Cost - Pain Share/Gain Share

In the Open Standard
Eric PatersonMember for 21 years 9 months
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Under NEC Target Cost (Bill of Quants) both parties are operating under a standard risk and reward set-up. SCENARIO: Groundworks are 4 weeks late (Contractor admits culpability).

Can the Contractor rely on the float in the programme ? Or is it unfair under the pain share/gain share option of Target Cost ?
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  1. 0
    Uri Shachar ·
    #1
    Eric,

    Look at the Contract. The answers should be there. Could you briefly describe how the Contract refers to this problem?
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  2. 0
    Stuart Ness ·
    #2
    Eric,

    I am not sure that the matter of Pain/Gain Share is the primary issue here, though I agree that it may be a factor.
    Surely the main point here is that if the Contactor has an inexcusable delay of 4 weeks, then he has an overriding responsibility to make good that delay. Failing to do so will inevitably cause him pain.

    I am not convinced that the Contractor can rely upon the float in the schedule. (I presume that you mean in this context that the Contractor could argue that he is allowed to complete later due to the float in the schedule???). In such a case the float would disappear faster than snow in the desert!

    Perhaps, as Uri suggests, you can explain your particular problem a little further before we all offer inconsistent advice.

    Cheers,

    Stuart
    www.rosmartin.com
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