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Has anybody got a rule of thumb regarding how much Terminal Float to allow in a schedule where the Contract Date has been left for the Contractor to propose?
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Hi all:
understanding "terminal float" as an additional time to complete the project (like aa "schedule reserve", margin, contiongency).
In this way, it shoulb be used for penalties (contractual milestones).
As a general reference, can be estimated up to 5% of total duration (it like a contingency in a budget).
The option to execute a risk analysis (quantitative, for the schedule) can give another guide to determine the value (based on the concept P50, P80).
Exists several documents/studies/analysis you can consult on the web.
regards
Hi,
we had a Board directive that all submitted tender programmes should have a 10% Terminal Buffer activity which was monitored on RAG status basis in all Project Board Reports. Seemed quite reasonable given their helicopter view of projects!
The concept of Terminal Float is a great idea but the NEC is ambiguous. In the US there is no such thing as Terminal float, it is 0.
The contractor owns the terminal float in an NEC3 ECC
The ECC assesses the impact of delay by reference to the contractor’s planned completion date, not the contractual completion date (clause 63.3). This means that the contractor’s terminal float remains untouched when assesing an extension of time; in other words, the contractor owns the terminal float.
In NEC contracts it can be anything but 0. But ambiguous clauses means anything the party who does not write the contract can essentially interpret it at his convenience.
Allowance for float NEC3 and NEC4 Contracts
For General Construction jobs maybe 15% of total duration could be specified as Baseline Terminal Float. For Development Jobs maybe 50% of total duration could be specified. I cannot see why it cannot be determined by the Owner in advance as he will anyway make a “late” judgement, in this way there is no ambiguity.
Terminal Float is the period between the Planned Completion date and the Completion date set in the contract. If the Contractor has submitted a baseline schedule or a tender schedule, you can use the Baseline Schedule's or Tender Schedule's Completion date to compare it with the Planned Completion date on the master schedule to determine Terminal Float.
Email: PPadmin@planningplanet.com
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