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NEC3:Programme Provisions under NEC3 Contracts © nec 04/2012
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NEC3: Programme provisions under the NEC3 contract
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ECC Contract Programme RequirementsIssues with other forms of contract
Main contractual programme requirementsReasons and sanctions for non-acceptance
Revised programmesAcceleration
Types and ownership of float
Early warnings and compensation events
Other NEC3 Contracts Programme RequirementsHow the other contracts within the NEC3 suite differ from ECC
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ECC Contract Programme Requirements
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Issues with other forms of contract and management of programme:
Retrospective analysis of time delay and entitlement subjective to say the least!No firm requirement on how to manage programme during contract Often comparing current programme to original baseline programme (which has no resemblance as to how works now being done).
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Clause 31 The programme
31.2 - Items to be shown on the programme include:
starting date/Completion Date/Key Dates
planned Completion
ECC Section 3 Time
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12 w
Planned Completion / Completion Date
4w
4w
4w
3w
3w
3w
NEC3:Programme Provisions under NEC3 Contracts © nec 04/2012
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12 w
4w
4w
4w
3w
3w
3w
CE sAcceleration
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
4w
4w
4w
3w
3w
3wANYTHING!!
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Clause 31 The programme31.2 - Items to be shown on the programme include:
starting date/Completion Date/Key Datesplanned Completionorder and timing of operations to Provide the Worksfloattime risk allowanceshealth and safety requirementsPlant & Materials from Employeracceptances information from Othersstatements of how the Contractor plans to do the work
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Reasons for not accepting a programme
Under clause 31.3 there are only four reasonsnot to accept a programme:
The Contractor s plans which it shows are not practicable
It does not show the information which this contract requires
It does not represent the Contractor s plans realistically or
It does not comply with the Works Information
Project Manager has up to two weeks in which to accept or not accept the programme. If the Project Manager withholds acceptance for a reason not stated in contract it is a compensation event under clause 60.1(9)
Acceptance of a programme by the Project Manager is not acondition precedent to the Contractor proceeding with the work
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Sanctions/problems of non-acceptance
25% of the cumulative Price for Work Done to Date deducted until first programme submitted showing the information the contract requiresEmployer will in the absence of a newly accepted programme assess change(CE s) on the last accepted programme Neither party clear on the Completion Date and contractor entitlement in terms of time or money
Equally important to both parties programmeregularly accepted.
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Clause 32 - Revising the programme
32.1 - Contractor shows on each revised programme:actual progress achieved on each operation activity and affect upon remaining workeffects of implemented compensation eventshow Contractor plans to deal with any delays and to correct notified Defectsany other changes that Contractor proposes to make
32.2 Contractor submits a revised programme:Within the period for reply after Project Manager has instructedWhen the Contractor chooses toAt no longer interval than stated in the contract
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Clause 36 Acceleration
Project Manager may instruct Contractor to submit quotation for an acceleration to achieve completion before the Completion Date
this includes proposed changes to Prices and revised programmeContractor submits details of the assessment with the quotation
Contractor submits a quotation or gives reasons for not doing so within the period for reply
Note no option for the Project Manager to make his own assessment of an acceleration quotation!
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Activity schedule- Option A
31.4 The Contractor provides information which shows how each activity on the Activity Schedule relates to the operations on each programme which he submits for acceptance
11.2(27) states that the Price for Work Done to Date is the total of the Prices for completed activities on the activity schedule
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Types of Float
Total Float
Time Risk Allowance
Terminal Float
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12 w
1. Total Float
4w
4w
4w
3w
3w
3w3w float
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This float is available to either party when assessing revised programmes and the effects of delay/change in logic/ compensation eventsUsed by whoever gets there first!Programme needs updated regularly to demonstrate true effect.
1. Total Float
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Aim is to show that elements of risk have been applied to each operation. Are owned by the Contractor ( to cover his risks)
This gives some comfort to the Employer that particularly critical path is achievable
Part of normal tender process i.e.
200m of pipe @ 15.5m/gang/day = 12.9 so say 15 days
2. Time Risk Allowance
Clause 31.2 requires you to show provisions for time risk allowances
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12 w
2. Time Risk Allowance
4w
4w
4w
3w
3w
3w
TRA
0d
3d
1d
1d
0d
2d
1d
0d
0d
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
2. Ownership of Time Risk Allowance
4w
4w
4w
3w
3w
3w3w float
Time Risk Allowance =3 days
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
4w
4w
4w
3w
3w
3w
CE 3 day delay access to A
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
3w 2d
4w
4w
3w
3w
3w
?
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
4w
4w
4w
3w
3w
3w3 days
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3. Terminal Float
Difference between planned Completion and Completion DateGenerated during tender process or during the life of the contractOwned by the Contractor
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 3 4 8 12
3w
4w
4w
3w
3w
3w1w terminal float
3. Ownership of Terminal Float
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 3 4 8 12
3w
4w
4w
3w
3w
3w
CE 1 WEEK
3. Ownership of Terminal Float
Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 3 4 8 12
3w
4w
4w
3w
3w
3w
1 week
3. Ownership of Terminal Float
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Completion Date moves out the amount that planned Completion moves out due to the effects of a Compensation Event (clause 63.3)This makes it contractually clear that it is owned by the ContractorCan then only be brought back by acceleration.
3. Ownership of Terminal Float
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EARLY WARNINGS
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Clause 31.2 of the ECC2 contract stated that on each revised programme you should show:
The effects of implemented compensation events and of notified early warning matters.
With the revision of ECC3, the reference to early warning matters no longer exists as it was potentially confusing showing the potential effects of numerous events on planned Completion that may or may not happen.
The Accepted Programme should not be the place to be showing what if scenarios or possible effects rather than the actual known effects.
Early Warnings on the Programme
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Change to clause 32.1 does not mean that you can not show early warnings on a programme that clause along with clause 31.2 is a list of the minimum requirements
Early warnings are matters that need to be reviewed now when the project has a chance to minimise any potential effect
Early Warnings on the Programme
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To show them on the programme I would recommend:
Show all outstanding early warnings on the programme that could effect programmed works as a task (rather than a milestone)The start date would be fixed as the date the EW was issued, with the remaining duration the earliest you believe you could get ananswer (hence activity is still live on the programme).Link early warning to item(s) of programme that it could effectResultant total float will be indicative of the urgency of the matter to be resolved although this is only indicative as it depends what the answer is.
Early Warnings on the Programme
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If early warning is having an impact onthe programme then by default it is no longer an early warning that might affect the project
Early Warnings on the Programme
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COMPENSATION EVENTS
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Clause 31.2
The Contractor shows on each revised programme:
The effects of implemented compensation events
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
4w
4w
4w
3w
3w
3w3w float
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
4w
4w
4w
3w
3w
3w
CE 1
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
planned Completion
Completion Date
0 4 8 12
4w
4w
4w
3w
3w
3w
CE 1
1w float
Accepted programme
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
CE 02planned Completion
Completion Date
0 4 8 12 13
4w
4w
4w
3w
3w
3w
CE 1
CE 2+ 1 week
+ 1 week
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Start
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
CE 02planned CompletionCompletion Date
0 4 8 12 13
4w
4w
4w
3w
3w
3w
CE 1
CE 2
+ 1 week
+ 1 week
1w float
Forecast cost 1 week delay
in CE 2
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Compensation Event Quotations
Under clause 62.2 if the remaining works work is altered by the compensation event, then the Contractor includes the alterations to the Accepted Programme in his quotation. Clearest way to do this would be to include the programme within the quote to back up the cost/time claimed for.
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ECS (Engineering and Construction Subcontract)PSC (Professional Services Contract)TSC (Term Service Contract)SC (Supply Contract)
Other NEC Forms of Contract Programme Requirements:
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The requirements for a Subcontractor under an ECS contract are almost identical as that of a Contractor under an ECC contract,the only difference being terminology.
Engineering and Construction Subcontract
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31.2 - Items to be shown on the programme include:
starting date/Completion Date/Key Dates
planned Completionorder and timing of operations to Provide the Works
float
time risk allowanceshealth and safety requirements
Plant & Materials from Employer/Contractor
acceptances information from Others
statements of how the Subcontractor plans to do the work
Engineering and Construction Subcontract
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Same reasons for non-acceptanceSame timescales in which programme has to be acceptedSame requirement to update and revise the programme
Same timescale intervals in which the Subcontractor has to submit revised programmes
Same sanctions apply until first programme submitted showing the information the contract requires (25% PWDD)
Engineering and Construction Subcontract
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The requirements for a designer under a PSC contract are very similar to that of a Contractor under an ECC contract, the main difference being some terminology.
Professional Services Contract
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31.2 - Items to be shown on the programme include:
starting date/Completion Date/Key Datesplanned Completionorder and timing of operations to Provide the Servicesfloattime risk allowanceshealth and safety requirementsAccess to a person, place or thinginformation from Employer and Othersstatements of how the Consultant plans to do the workOther information which the Scope requires the consultant to show on a programme
Professional Services Contract
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The nature of the content of the programme will be different because it is managing processes and
design, rather than physical construction works.
However, the design of a project just like the
construction is simply a series of activities that have dependencies upon each other leading to a Completion Date.
Professional Services Contract
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Similar reasons for non-acceptanceSame timescales in which programme has to be accepted
Same requirement to update and revise the programme
Same timescale intervals in which the Consultant has to submit revised programmesNo 25% sanction to with hold money for non-acceptance of programme
Professional Services Contract
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The requirements for a TSC contract are a different due to the nature of the work being carried. TSC is providing a service to maintain the existing standard of a site orlocation, rather than constructing something new.
Called a plan rather than a programme, and found in section two of the contract rather than section three
Term Services Contract
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21.2 - Items to be shown on the plan include:
starting date / end of service periodorder and timing of the work of Employer and Otherstime risk allowanceshealth and safety requirementsaccessPlant & Materials from Employeracceptances information from Othersstatements of how the Contractor plans to do the workOther information that the Service Information requires
Term Services Contract clause 21.2
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Quite often the services will be in part or wholly instructed under Task OrdersIn this case the initial programme will contain little more than the basic contract informationTask Orders can be added to the Plan during the life of the project making the plan a key management and commercial tool, very much like the programme under an ECC contract.
Term Services Contract
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Similar reasons for non-acceptanceSame timescales in which programme has to be acceptedSame requirement to update and revise the programme
Same timescale intervals in which the Consultant has to submit revised programmes
Same sanctions apply until first programme submitted showing the information the contract requires (25% PSPD)
Term Service Contract
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The requirements for a Supplier are less than that of an ECC contract again because of the nature of the service being provided, but much more significant than normally asked for of a Supplier under a traditional purchase order/contract agreement.
Supply Contract
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31.2 - Items to be shown on the programme include:
starting date / Delivery Dateplanned DeliveryDates which to Provide the Goods the Supplier needs
access to Purchaser s premisesacceptancesplant and materials and other things to be provided by the Purchaser
Dates when Supplier plans to carry out factory inspection tests or inspectionsOther information which the Goods Information requires to be shown on a programme (such as float, TRA etc)
Supply Contract
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Similar reasons for non-acceptance
Same timescales in which programme has to be accepted
Same requirement to update and revise the programmeSame timescale intervals in which the Supplier has to submit programmes
No 25% sanction to with hold money for non-acceptance of programme
Supply Contract
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ECSC (Engineering and Construction Short Contract)ECSS (Engineering and Construction Short Subcontract)TSSC (Term Service Short Contract)SSC (Short Supply Contract)
Short Forms of Contract Programme Requirements:
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Short forms of contract do not mandate the level of detail and requirement of the programme the same way that the fuller versions do, hence the long list within clause 31.2 does not existHowever, it states that the programme requirements are as per the Works Information, so you need to dictate the programme requirements within the Works Information. This could be to the full detail that the main contract requires if it is deemed suitable/ necessary for a given project.
Short forms of contract
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The NEC suite of contracts all focus on programme, with the regular accepted programme becoming a key driver both operationally and commercially
Could be seen as quite onerous in terms of what should be included within a compliant programme and the requirement to regularly update. However, the contract is simply instilling good practise project management and nothing that the Contractor should not want to be doing for themselves.
Summary of programming under NEC contracts
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Requires the main party to accept a programme, or give reasons for not accepting so that both parties know where they stand.
Accepted programme becomes the revised contract programme and the new baseline to measure future
progress/change against.
Summary of programming under NEC contracts