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
Printer-friendly version- Login or register to post comments
Send to friend
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
User login
Partners & Sponsors
CH2M Water Business Group; providing innovation and insight on all things water
EcoSys is the global standard for enterprise Project Controls software. Our easy-to-use web-based platform, EcoSys EPC, helps organizations worldwide plan and manage project portfolios, control project costs, and improve project performance.
The Global Leader in Managing Construction Risk.
The Mott MacDonald Group is a management, engineering and development consultancy serving the public and private sectors world-wide.
infinitrac, the Document and Project Management Platform
OnTrackPM is an integrated capital project controls management software that delivers a scalable, flexible web-based offering including multi language and multi currency support with real time visibility and clarity in a single point entry solution.
A new way of viewing .XER project schedules exported from Oracle® Primavera P6. It’s a standalone application and offers greater control by providing each member with clear activity insights.
PRISM is an integrated project lifecycle management solution that supports the planning, execution, and completion of capital projects for dependable forecasts, cost control, and performance measurement.
Our mission is to provide an approach to project execution that implements a modern and sustainable philosophy and prevents unnecessary waste, in all senses
THE solution to all the difficulties in running a Project Controls environment: written by Practitioners for Practitioners AND their Employers
The Most Comprehensive Online Resource for Construction Professionals
Amec Foster Wheeler is one of the world’s leading engineering, project management and consultancy companies
Spider Project Team is a group of project management consulting and training companies, headquartered in Moscow, Russia
We are a 100% Qatari owned project management consultancy that combines global best practice solutions with a profound understanding of the local business environment to deliver some of the most iconic projects in Qatar and the region at large.
A global consulting firm assisting public and private clients to plan, develop, design, construct, operate and maintain critical infrastructure
Time-location planning software for managing linear construction projects; infrastructure projects in Road, Rail, Tunnel, Pipeline Industry
Systech International provides responsive, high quality multi-disciplinary managed services to contractors, supporting them in the delivery of complex and challenging projects on time and to budget.
Primavera Systems, Inc. is largely considered to be the world’s leading provider of project, program and portfolio management software solutions.
Replies