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NEC ECC: Should Terminal Float on Sectional Completion impact Terminal Float on Contract Completion?

+2 votes
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We have a contract with four Sectional Completions; the 4th Sectional Completion being described as "The Remainder of the Works". We have a CE which is pushing the 2nd Sectional Completion beyond the date of the 4th Sectional Completion. Should the planned Completion date for the 2nd Sectional Completion drive the planned Completion for the 4th Sectional Completion, or should the Terminal Float on the 2nd Sectional Completion drive the planned Completion (and therefore Terminal Float) of the 4th Sectional Completion?
asked Oct 5 in NEC3 and NEC4 Contracts by Hamish Gaunt (150 points)  
   

1 Answer

+2 votes
Given that all of your sectional completions would be linked to overall planned Completion, the planned Completion will now be at the end of your 2nd planned sectional completion and hence the critical path now on the project.

Terminal float for each sectional Completion and the overall Completion Date is owned by the Contractor - so again programme logic should drive/show the correct answer.

Point of note in your question - this is quite poor drafting as the last sectional completion did not need to be one - it should just have been the overall Completion Date.
answered Oct 5 by Glenn Hide (31,030 points)  
Thanks Glenn.

Just to be clear, I take from your answer that it is possible for TF on both Sectional Completions to run concurrently?

Also should the Contractual Completion milestones for each Sectional Completion be linked to the Contract Completion milestone?
Yes to the first question.

Using the correct terminology to your second question, yes Sectional Completion should be linked to Completion Date (as until each section is complete you will not have met the requirements of Completion). Or to be really specific it should be linked to overall "planned Completion" - and if planned Completion moves due to the effects of a compensation event than Completion Date moves by the same amount once implemented.