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Imposition of milestones within NEC Option C

2 replies [Last post]
Neil Coker
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Joined: 4 Nov 2010
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We have a situation where we have been instructed to accelerate works to meet a new milestone date but the Client has specifically noted that the Key Date has not changed (the Key Date is next year and the new milestone is before Christmas this year). In addition, this has not been instructed under Cl 36 "Acceleration"  but under Cl 60 "Compensation Events" . As defined under Cl 61.1 we have started the work and issued the quotation and programme to the Client. We have noted that there are a number of works which cannot be achieved (due to issues beyond our control) by the new milestone date and identified all of the necessary risk and mitigation required to achieve the milestone date for the remainder. The problem is that the Client is not accepting the programme and is insisting that we complete all works by the milestone date. In my opinion this constitutes a change under Cl 63.9 "Change to Subcontractors Works Information"  and we are considering issuing a response under Cl 18.1 "Illegal & Impossible". We have demonstrated significant good faith and worked at risk for the past four weeks but are now concerned at our level of exposure. Any comments welcome. 

Replies

Gary Whitehead
User offline. Last seen 4 years 42 weeks ago. Offline

I'm with you, Neil.

 

The definition of a Key date is something like (don't have the docs with me) "the date by a which the stated work is to meet a certain condition"

So this instruction is either introducing a new Key Date, changing an existing Key date, or (if client will take over this portion of the works early) utilising x5 to introduce a new sectional completion.

All of the above would seem to come under Cl 63.9, as you suggest.

 

 

NEC contracts more than most require quick and co-operative contract adminsitration from both sides, and keeping a good working relationship is really really important to this. I think Damian is right to suggest a sit down with the client to explain your position and understand his, but if all else fails I think you're on sound contractual ground.

Damian Smith
User offline. Last seen 3 years 29 weeks ago. Offline
Joined: 10 Nov 2010
Posts: 12

Tricky one Neil

I can only suggest you sit down with the client and explain the situation. It sounds like they are under the pump from their client.

There are all sorts of issues which need to be addressed including your revised target cost, have they agreed this?