NEC3: Programme provisions under the

NEC3 contract

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nec 04/2012

ECC Contract Programme Requirements

Issues with other forms of contract
Main contractual programme requirements
Reasons and sanctions for non-acceptance
Revised programmes
Acceleration
Types and ownership of float
Early warnings and compensation events

Other NEC3 Contracts Programme Requirements

How the other contracts within the NEC3 suite differ from ECC

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ECC Contract
Programme Requirements

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NEC3:Programme Provisions under NEC3

Contracts

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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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nec 04/2012

ECC Section 3
Clause 31

Time

The programme

31.2 - Items to be shown on the programme include:

starting date/Completion Date/Key Dates
planned Completion

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Planned Completion / Completion Date

0

12 w

Start
4w

Activity A

4w

Activity B

4w

Activity C
Activity D

3w
3w

Activity E

3w

Activity F
planned Completion
Completion Date

NEC3:Programme Provisions under NEC3

Contracts

nec 04/2012

12 w

Start
Activity A

4w
4w

Activity B

4w

Activity C
Activity D

3w
3w

Activity E

3w

Activity F
planned Completion
Completion Date

Acceleration

CE s

12

Start
Activity A

4w
4w

Activity B

4w

Activity C
Activity D

3w

Activity E
Activity F

3w
3w
ANYTHING!!

planned Completion
Completion Date

Clause 31

The programme

31.2 - Items to be shown on the programme include:

starting date/Completion Date/Key Dates
planned Completion
order and timing of operations to Provide the Works
float
time risk allowances
health and safety requirements
Plant & Materials from Employer
acceptances
information from Others
statements of how the Contractor plans to do the work
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NEC3:Programme Provisions under NEC3

Contracts

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Reasons for not accepting a programme

Under clause 31.3 there are only four reasons
not 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 a
condition 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 requires
Employer 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 programme
regularly accepted.
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nec 04/2012

Clause 32 - Revising the programme

32.1 - Contractor shows on each revised programme:
actual progress achieved on each operation activity
and affect upon remaining work
effects of implemented compensation events
how Contractor plans to deal with any delays and to
correct notified Defects
any other changes that Contractor proposes to make
32.2 Contractor submits a revised programme:
Within the period for reply after Project Manager has
instructed
When the Contractor chooses to
At no longer interval than stated in the contract
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NEC3:Programme Provisions under NEC3

Contracts

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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
programme
Contractor 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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nec 04/2012

Types of Float

Total Float
Time Risk Allowance
Terminal Float

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NEC3:Programme Provisions under NEC3

Contracts

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1. Total Float
0

12 w

Start
Activity A

4w
4w

Activity B

4w

Activity C
Activity D

3w

Activity E

3w

3w float
3w

Activity F
planned Completion
Completion Date

1. Total Float

This float is available to either party when

assessing revised programmes and the
effects of delay/change in logic/
compensation events
Used by whoever gets there first!
Programme needs updated regularly to
demonstrate true effect.
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nec 04/2012

2. Time Risk Allowance

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
Clause 31.2 requires you to show provisions for time risk
allowances
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NEC3:Programme Provisions under NEC3

Contracts

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2. Time Risk Allowance

TRA
Start

0d

Activity A

3d

Activity B

1d

Activity C

1d

Activity D

0d

Activity E

2d

Activity F

1d

12 w

4w
4w
4w
3w
3w
3w

planned Completion 0d
Completion Date

0d

2. Ownership of Time Risk Allowance

0

12

Time Risk Allowance =3 days

Start
Activity A

4w
4w

Activity B

4w

Activity C
Activity D

3w

Activity E

3w

3w float
3w

Activity F
planned Completion
Completion Date

CE

Start
Activity A

4w
4w

Activity B

4w

Activity C
Activity D

12

3 day delay access to A

3w

Activity E
Activity F

3w
3w

planned Completion
Completion Date

NEC3:Programme Provisions under NEC3

Contracts

nec 04/2012

12

Start
Activity A

3w 2d

?
4w

Activity B

4w

Activity C
Activity D

3w

Activity E

3w
3w

Activity F
planned Completion
Completion Date

12

Start
Activity A

4w

Activity B

4w
4w

Activity C
Activity D

3w

Activity E

3w
3w

Activity F

3 days

planned Completion
Completion Date

3. Terminal Float

Difference between planned Completion

and Completion Date
Generated during tender process or during
the life of the contract
Owned by the Contractor

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Contracts

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3. Ownership of Terminal Float

0

12

Start
Activity A

3w
4w

Activity B

4w

Activity C
Activity D

3w

Activity E

3w

1w
terminal
float

3w

Activity F
planned Completion
Completion Date

3. Ownership of Terminal Float

0

12

Start
Activity A

CE

3w

1 WEEK

4w

Activity B

4w

Activity C
Activity D

3w

Activity E

3w
3w

Activity F
planned Completion
Completion Date

3. Ownership of Terminal Float

0

12

Start
Activity A

3w
4w

Activity B

4w

Activity C
Activity D

3w

Activity E
Activity F

3w
3w

planned Completion

1 week

Completion Date

NEC3:Programme Provisions under NEC3

Contracts

nec 04/2012

3. Ownership of Terminal Float

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 Contractor
Can then only be brought back by
acceleration.
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EARLY WARNINGS

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NEC3:Programme Provisions under NEC3

Contracts

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Early Warnings on the Programme

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.

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nec 04/2012

Early Warnings on the Programme

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

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nec 04/2012

Early Warnings on the Programme

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 an
answer (hence activity is still live on the programme).
Link early warning to item(s) of programme that it could effect
Resultant 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.

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NEC3:Programme Provisions under NEC3

Contracts

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Early Warnings on the Programme

If early warning is having an impact on

the programme then by default it is no
longer an early warning that might affect
the project

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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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NEC3:Programme Provisions under NEC3

Contracts

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12

Start
Activity A

4w

Activity B

4w

Activity C

4w

Activity D

3w

Activity E

3w

3w float

Activity F

3w

planned Completion
Completion Date
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nec 04/2012

12

Start
Activity A

4w

Activity B
Activity C

4w
4w

CE 1

Activity D

3w

Activity E

3w

Activity F

3w

planned Completion
Completion Date
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nec 04/2012

Start
Activity A

Accepted programme
4w
4w

Activity B
Activity C
Activity D
Activity E

12

4w

CE 1

3w
1w float

3w

Activity F

3w

planned Completion
Completion Date
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Contracts

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12 13

Start
Activity A

4w

Activity B

4w

Activity C

4w

CE 1

Activity D

3w

Activity E

3w

Activity F

3w

CE 02
planned Completion
Completion Date

CE 2
+ 1 week
+ 1 week

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nec 04/2012

12 13

Start
Activity A

1w float
4w

Activity C
Activity D
Activity E

Forecast cost
1 week delay
in CE 2

4w

Activity B

4w

CE 1

3w
3w

Activity F
CE 02
planned Completion
Completion Date

3w
CE 2
+ 1 week
+ 1 week

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NEC3:Programme Provisions under NEC3

Contracts

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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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nec 04/2012

Other NEC Forms of Contract

Programme Requirements:
ECS (Engineering and Construction
Subcontract)
PSC (Professional Services Contract)
TSC (Term Service Contract)
SC (Supply Contract)

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Engineering and Construction

Subcontract

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.

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Contracts

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Engineering and Construction Subcontract

31.2 - Items to be shown on the programme include:
starting date/Completion Date/Key Dates
planned Completion
order and timing of operations to Provide the Works
float
time risk allowances
health and safety requirements
Plant & Materials from Employer/Contractor
acceptances
information from Others
statements of how the Subcontractor plans to do the work
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nec 04/2012

Engineering and Construction Subcontract

Same reasons for non-acceptance

Same timescales in which programme has to be
accepted
Same 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)
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nec 04/2012

Professional Services Contract

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.

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Contracts

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Professional Services Contract

31.2 - Items to be shown on the programme include:
starting date/Completion Date/Key Dates
planned Completion
order and timing of operations to Provide the Services
float
time risk allowances
health and safety requirements
Access to a person, place or thing
information from Employer and Others
statements of how the Consultant plans to do the work
Other information which the Scope requires the consultant to show on
a programme
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nec 04/2012

Professional Services Contract

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.
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nec 04/2012

Professional Services Contract

Similar reasons for non-acceptance

Same 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 programmes
No 25% sanction to with hold money for nonacceptance of programme
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Term Services Contract

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 or
location, rather than constructing something
new.
Called a plan rather than a programme, and
found in section two of the contract rather than
section three
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Term Services Contract

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clause 21.2

21.2 - Items to be shown on the plan include:

starting date / end of service period
order and timing of the work of Employer and Others
time risk allowances
health and safety requirements
access
Plant & Materials from Employer
acceptances
information from Others
statements of how the Contractor plans to do the work
Other information that the Service Information requires
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nec 04/2012

Term Services Contract

Quite often the services will be in part or wholly

instructed under Task Orders
In this case the initial programme will contain
little more than the basic contract information
Task 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.

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Term Service Contract

Similar reasons for non-acceptance

Same 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 programmes
Same sanctions apply until first programme
submitted showing the information the contract
requires (25% PSPD)
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nec 04/2012

Supply Contract

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.
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nec 04/2012

Supply Contract
31.2 - Items to be shown on the programme include:
starting date / Delivery Date
planned Delivery
Dates which to Provide the Goods the Supplier needs
access to Purchaser s premises
acceptances
plant and materials and other things to be provided by the Purchaser
Dates when Supplier plans to carry out factory inspection tests or
inspections
Other information which the Goods Information requires to be shown on
a programme (such as float, TRA etc)
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Supply Contract
Similar reasons for non-acceptance
Same timescales in which programme has to be
accepted
Same requirement to update and revise the programme
Same timescale intervals in which the Supplier has to
submit programmes
No 25% sanction to with hold money for non-acceptance
of programme

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nec 04/2012

Short Forms of Contract Programme

Requirements:
ECSC (Engineering and Construction
Short Contract)
ECSS (Engineering and Construction
Short Subcontract)
TSSC (Term Service Short Contract)
SSC (Short Supply Contract)
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nec 04/2012

Short forms of contract

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 exist
However, 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.

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Summary of programming under NEC contracts

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.
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nec 04/2012

Summary of programming under NEC contracts

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.

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NEC3:Programme Provisions under NEC3

Contracts

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