--- title: "FAQ: NEC Programme" date: 2024-02-07T13:04:51Z modified: 2024-03-01T10:01:37Z permalink: "https://gmhplanning.co.uk/nec-faqs/nec-programme-faq/" type: faq status: publish excerpt: "" wpid: 5834 nec_contract_type: - NEC3 - NEC4 nec_contract_version: - NEC Engineering & Construction Contract (ECC) - NEC Engineering & Construction Subcontract (ECS) - NEC Professional Services Contract (PSC) faq_category: - Programme featured_image: "https://gmhplanning.co.uk/wp-content/uploads/2024/02/FAQ-Programme-NEC-Frequently-Asked-Questions-by-Glenn-Hide-GMH-Planning.jpg" featured_image_alt: NEC Frequently Asked Questions on NEC Programme author: Glenn Hide timestamp: 2024-03-01T10:01:37Z tags: - NEC3 - NEC4 - NEC Engineering & Construction Contract (ECC) - NEC Engineering & Construction Subcontract (ECS) - NEC Professional Services Contract (PSC) - Programme --- Frequently asked questions about section 3 of the contract which is “time” and all things programme. ## Who decides the date of Completion and when? _share_ _expand\_less_ _expand\_more_ The Project Manager decides the date of Completion and should certify within one week of the date being achieved. ## What is the Accepted Programme? _share_ _expand\_less_ _expand\_more_ It is the programme identified in contract data or is the latest programme accepted by the Project Manager (which supersedes previous accepted programmes). A revised programme accepted by the Project Manager supersedes previous accepted programmes. ## What is a Key Date? _share_ _expand\_less_ _expand\_more_ It is a date identified in contract data 1 where the Contractor is obliged to fulfil a certain condition by a certain date. Costs incurred by the Client due to the failure of a Contractor to achieve a Key Date will be recoverable from the Contractor (see clause 25.3) ## What is the Completion Date? _share_ _expand\_less_ _expand\_more_ It is the date identified in Contract Data unless changed in accordance with the contract (i.e. changed through compensation events or acceleration) ## What is the _starting date_? _share_ _expand\_less_ _expand\_more_ It is the date identified in contract data 1 as to when the Contractor should commence works on that project. ## What is the Contract Date: _share_ _expand\_less_ _expand\_more_ It is the date when the contract comes into existence. ## What are _access dates_? _share_ _expand\_less_ _expand\_more_ Date(s) identified in contract data 1 as to when the Contractor will be given access to the whole site or different dates for different parts of the Site. ## What is planned Completion? _share_ _expand\_less_ _expand\_more_ It is the date when the Contractor is at that point in time anticipating achieving the status of Completion. This can be compared to the Completion Date to see if they are behind or ahead of schedule. A Contractor showing planned Completion beyond Completion Date will either be in delay for a reason of their own liability, or there may be compensation events yet to agree that may move the Completion Date in line with their planned Completion. ## Can a Completion Date be moved to a later date? _share_ _expand\_less_ _expand\_more_ Yes through implemented compensation events. Any compensation event should consider the Contractor’s time affects as well as their cost effects. ## Can a Completion Date or sectional Completion Date ever be brought forward to an earlier date? _share_ _expand\_less_ _expand\_more_ Only through acceleration in accordance with section 36 of the contract. Negative compensation events can NOT bring forward the Completion Date or a sectional Completion Date. ## What are sectional Completion Dates? _share_ _expand\_less_ _expand\_more_ If secondary option X5 has been chosen then these will be dates where the Contractor is obligated to hand over that section of works by the date stated in contract data. It is in effect a “mini” Completion Date and can have specific delay damages attached through secondary option X7 if the sectional Completion Date is not achieved. ## What should a Contractor show on a programme issued for acceptance? _share_ _expand\_less_ _expand\_more_ Clause 31.2 lists all of the elements that should be shown on a Contractor’s programme issued for acceptance. It would be a reason to not accept the programme if it fails to show all the information the contract requires. ## What is float? _share_ _expand\_less_ _expand\_more_ Float as identified in clause 31.2 is commonly known as “total float” and is the amount an activity can slip before it will be affecting the critical path. An item with no float is commonly known as “critical” and will impact one of the contractual milestones if it is delayed. ## What would negative float mean on a programme? _share_ _expand\_less_ _expand\_more_ Negative float means a project milestone (e.g. Completion Date, Key Date, sectional Completion Date) is being exceeded. This could either be due to the Contractor’s own liability, or could mean a compensation event is yet to be agreed which could move the contractual date to reduce or remove the negative float. ## What is the critical path? _share_ _expand\_less_ _expand\_more_ Not a term identified in the contract, but is the path of logic linked activities that if delayed will be impacting one of the contractual milestones on the project. Clause 31.2 identifies the requirement to show “float” on a programme issued for acceptance, and where float is zero then this would be what is classed as being critical. ## What are time risk allowances? _share_ _expand\_less_ _expand\_more_ These are risks that the Contractor has allowed against their own activities. It is only required to be shown to give comfort to the Client that the Contractor’s programme is more likely to be achieved. If no time risk allowances are shown then the ability to complete by the dates shown on the programme will be in question. ## What is terminal float? _share_ _expand\_less_ _expand\_more_ A common phrase used to refer to the difference between planned Completion and Completion Date when planned Completion is earlier than the Completion Date. This type of float is retained in the assessment of any compensation events i.e. is owned by the Contractor. ## Who owns any float on a Contractors programme? _share_ _expand\_less_ _expand\_more_ It depends what type of float is being considered. In very simple terms “total float” is shared by both Parties, but “time risk allowances” and “terminal float” are owned by the Contractor. ## Is it necessary to show resources on a programme? _share_ _expand\_less_ _expand\_more_ Not an obligation, unless such a requirement has been included within the Scope. It is however an obligation to state the principal equipment and resources that are needed to achieve each operation on the programme. Words are therefore obliged to be submitted with each programme to fulfil this requirement and help the Project Manager understand if they can accept that programme or not. With good planning software it is possible to show resources on the programme as a resource profile, which would probably negate the need for words and be much more of a practical management tool for both Parties. ## Should Client activities be shown on a Contractor’s programme? _share_ _expand\_less_ _expand\_more_ Yes, there are various Client elements that should be shown on the programme as identified within clause 31.2. These include order and timing of work of Client and Others, dates by which they need Client issued Plant and Materials, and any Client acceptance periods. ## Does the Contractor have to use a specific software to produce the programme in? _share_ _expand\_less_ _expand\_more_ Not unless this has been specified within the Scope. If it is a Client requirement that a specific software is used, this should be clearly identified within the Scope at tender stage. It should only be requested in a certain software if there is a specific reason why the client needs it. Otherwise it is not advised to restrict the Contractor to use a software they are not familiar with to produce their programmes. ## How often should a Contractor submit a programme for acceptance? _share_ _expand\_less_ _expand\_more_ The maximum period between submissions would be the period stated in contract data 1 which for most projects would be either four weekly or monthly. The Project Manager can also instruct a revised programme at any stage, for which the Contractor would have to submit within the _period for reply_. The Contractor can also submit a revised programme whenever they choose. ## How quick does the Project Manager have to respond to a programme issued for acceptance? _share_ _expand\_less_ _expand\_more_ The Project Manager should respond to a programme with either acceptance or non-acceptance within two weeks of it being submitted. ## What level of detail is necessary for a response to a programme by the Project Manager particularly if they are not accepting? _share_ _expand\_less_ _expand\_more_ The Project Manager should state the reasons why they are not accepting with sufficient detail that will allow the Contractor to correct the submission. ## What are the valid reasons that a Project Manager can reject a programme for? _share_ _expand\_less_ _expand\_more_ The four stated reasons that the Project Manager can reject a programme for are that the Contractor’s plans they are showing are not practicable, it does not show the information the contract requires, it does not represent the Contractor’s plans realistically, or it does not comply with the Scope. ## What liability is the Project Manager taking on by accepting a programme? _share_ _expand\_less_ _expand\_more_ Acceptance by the Project Manager does not transfer liability from the Contractor to comply with the Scope. If there is an error in the programme that has been accepted (for example the Completion Date has been moved without an implemented compensation event), the Project Manager would simply instruct them to correct it (which would not be a compensation event). Accepting the programme is more a case of confirming that it was a clear realistic representation of how the Contractor planned to carry out the works. Acceptance of the programme does not accept any liability, for example on durations shown on the programme for compensation events yet to be agreed. ## What happens if the Project Manager does not respond to a programme within two weeks? _share_ _expand\_less_ _expand\_more_ The Contractor may notify that the Project Manager has not responded. If they fail to respond to this reminder within a further week then the programme is treated as being accepted by the Project Manager i.e. deemed accepted. ## Can a Project Manager reject a programme if they do not like the Contractor’s planned Completion? _share_ _expand\_less_ _expand\_more_ This is not a valid reason for not accepting a programme. Planned Completion beyond Completion Date may be the Contractor’s liability, or it may be that compensation events (once implemented) will yet move the Completion Date nearer or beyond planned Completion. ## What specifically needs to be shown on a revised programme issued for acceptance? _share_ _expand\_less_ _expand\_more_ In addition to everything already in clause 31.2, the Contractor should in addition show actual progress achieved and the effect upon remaining works, how they plan to deal with any delays and correct notified defects, and show any other changes the Contractor proposes to make. ## Can the Project Manager give an instruction to stop or not start any work? _share_ _expand\_less_ _expand\_more_ Yes, although this would lead to a compensation event (unless the instruction was for a reason that was the Contractor’s fault/liability). ## Does the Client have to take over the works before the Completion Date if the Contractor achieves Completion before this date? _share_ _expand\_less_ _expand\_more_ Only if contract data states they were willing to do so, otherwise they are under no obligation. ## Can the Client take over any part of the works before Completion? _share_ _expand\_less_ _expand\_more_ Yes, but that would be a compensation event unless the reason is for one stated in the Scope, or was to suit the Contractor’s method of working. ## What is acceleration under the contract? _share_ _expand\_less_ _expand\_more_ It is the bringing forward of the Completion Date following the acceptance of a Contractor’s quote by the Project Manager. The acceleration quote can only be accepted/not accepted and there is no mechanism for the Project Manager to make their own assessment if they did not agree with it. ## Can the Contractor be instructed to accelerate? _share_ _expand\_less_ _expand\_more_ No, they can only be instructed to provide a quotation for acceleration and even then only if the Contractor agrees with the proposed change. If the Project Manager accepts the quotation, then the Contractor will be paid the sum in the quote and the Completion Date will move forward to the earlier date. Any liability for delay damages under X7 will also now be from this earlier date, hence the Contractor will include such risk within their quotation. ## How is acceleration agreed? _share_ _expand\_less_ _expand\_more_ By accepting the Contractor’s acceleration quotation. ## For option A does the activity schedule have to relate to the activity schedule? _share_ _expand\_less_ _expand\_more_ Yes, there is an obligation for items on the activity schedule to relate to items on the programme. ## Should non-implemented compensation events be shown on the Accepted Programme? _share_ _expand\_less_ _expand\_more_ Yes, they should be shown on the Accepted Programme, but only showing their effect upon planned Completion at this stage. The Completion Date can only be moved once the quotation has been accepted (implemented), which will have agreed the amount that the Completion Date should move by. ## Topics **NEC Contract Editions:** [NEC3](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_type/nec3.md), [NEC4](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_type/nec4.md) **NEC Contract Versions:** [NEC Engineering & Construction Contract (ECC)](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_version/nec-engineering-construction-contract-ecc.md), [NEC Engineering & Construction Subcontract (ECS)](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_version/nec-engineering-construction-subcontract.md), [NEC Professional Services Contract (PSC)](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_version/nec-professional-services-contract-psc.md) **FAQ Categories:** [Programme](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/faq_category/programme.md)