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Forensic Claims Analysis

NEC3 - Terminal Float

In the Open Standard
Bo JohnsenMember for 20 years 7 months
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Hi all,

If the Contract states that the float from planned completion to contractual completion of the different sectional milestones and the final completion date belongs to the Contractor, would you then make activities for that float in the baseline programme or just leave as is and take up the discussion at a later stage should it become relevant?

If including activities for the terminal float and link up from planned completion to contractual completion it would mean many activities would suddenly become critical, though some activity paths would in most projects still have float up to the planned completion.

If not including activities for terminal float it would not be possible to easily ascertain between the terminal float value and the actual total float for each activity.

The "declaration" of terminal float or not in the programme would most probably have a huge impact when discussing claims at a later stage.

Best regards,

Bo

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  1. 0
    Alan Whaley ·
    #1

    Hi Bo,Leave out the dummy

    Hi Bo,

    Leave out the dummy activities.

    Review any changes to the planned completion dates as they occur.

    Cheers

    Alan

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  2. 0
    Mike Testro ·
    #2

    Hi BoTerminal float - as I

    Hi Bo

    Terminal float - as I understand it - is the gap between programmed work completion and the contract completion date.

    In the NEC form of contract ownership of this period is split between the Contractor and the Employer.

    If nothing is stated in the contract then the Contractor is fully entitled to bridge the terminal float with a "Time Risk Contingency" task thus creating a critical path with a buffer for any of his own delays.

    In a forensic EoT situation I would have no hesitation in putting such a buffer in the baseline programme.

    Remember that the contractor has agreed to finish by the contract date - how he arranges that is up to him.

    Best regards

    Mike Testro

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  3. 0
    Ross Humphrey ·
    #3

    @Mike Testro just a quick

    @Mike Testro just a quick one.  The NEC is expressly clear as the ownership of terminal float in the accepted programme.  This is not split between the Employer and the Contractor, it is owned in its enitrity by the Contractor i.e. any event which stops the Contractor completing the Works by the date shown in the Accepted Programme is a Compensation Event pursuant to 60.1 (19).

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