Terminal Float
Tue, 2009-11-03 08:15
Hi Pals,
Can anyone elaborate on Terminal Float and what are its contractual implications?
Cheers
Can anyone elaborate on Terminal Float and what are its contractual implications?
Cheers
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Tue, 2009-11-03 09:27
#1
Tue, 2009-11-03 08:39
#2
Francis,
Some forms of contract (eg NEC) recognise the Terminal Float concept, and some don’t.
Terminal float is the difference between a contractor’s planned completion date, and the contractual completion date, as per the latest approved programme.
(I am not sure of hand if this difference is expressed in calendar days or normal working days)
Terminal float is available for use solely by the contractor.
This means, if there is any delay to a contractor’s planned completion, for which the contractor is not responsible, the contractual completion date must be pushed back so that the amount of terminal float available to the contractor remains constant.
(Simplified) Working example:
1) Contract is let, with completion required by week 100.
2) Programme is approved showing planned completion week 90, and 10 weeks of Terminal Float.
3) Client is 2 weeks late in granting access to site. 1 week of this delay is absorbed through free float, the other week causes the contractors planned completion to be delayed to week 91.
4) Contractual completion date is moved back to week 101, thus retaining the contractor’s original 10 weeks of terminal float.
Cheers,
G
Some forms of contract (eg NEC) recognise the Terminal Float concept, and some don’t.
Terminal float is the difference between a contractor’s planned completion date, and the contractual completion date, as per the latest approved programme.
(I am not sure of hand if this difference is expressed in calendar days or normal working days)
Terminal float is available for use solely by the contractor.
This means, if there is any delay to a contractor’s planned completion, for which the contractor is not responsible, the contractual completion date must be pushed back so that the amount of terminal float available to the contractor remains constant.
(Simplified) Working example:
1) Contract is let, with completion required by week 100.
2) Programme is approved showing planned completion week 90, and 10 weeks of Terminal Float.
3) Client is 2 weeks late in granting access to site. 1 week of this delay is absorbed through free float, the other week causes the contractors planned completion to be delayed to week 91.
4) Contractual completion date is moved back to week 101, thus retaining the contractor’s original 10 weeks of terminal float.
Cheers,
G
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