What is the best way to apply and record costs for acceleration?

Question

We are contracted to deliver a project by the middle of January, however I am forecasting this to run over by at least 5 months. We are increasing labour to keep up and I have issued an EWN to support this with no response from the customer, and requested a direct acceleration notification from them, with no response. The customer is condensing the programme instead of recognising the delay and extending the time to complete. The delay is not of our making, as we are last in. The contract itself is an NEC3, lump sum and I have enclosed the outtake on acceleration in the upload attachments.

Mike Barrett · Accepted Answer

Gavin, an interesting position. Limited to your question and the screenshots provided only, then under Clause 36.1 the subcontractor may instruct the subsubcontractor to submit a quotation for acceleration. The subcontractor should also state the changes to the key dates to be included in the subsubcontrator's quotation. From what you have stated it is assumed that this has not happened ie Clause 36.1 has not been actioned by the subcontractor . From what you have provided Clauses 36.3 to 36.5 flow from Clause 36.1. The subcontractor may be of the opinion that the acceleration is required to recover delay beyond the subsubcontract completion date not resulting from a Compensation Event, in which event the Prices are not adjusted, but the subcontractor would be still obliged to issue an Instruction under Clause 36.1 accordingly and also I would suspect other notices as would be set out in the subsubcontract particulars concerning Delay. Hence, again limited to your question and the information provided, on that basis only the subsubcontrator has no obligation to accelerate. However, as a general point (and not being aware of the subsubcontract particulars) there may be other grounds that the subcontractor requires the subsubcontrator to recover/re programme time, and have issued other notices as stated above, and the subsubcontrator should be aware of those. The extent of and obligations thereto will be dependent on the provisions within the subsubcontract and how these have been followed.

What is the best way to apply and record costs for acceleration?

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Gavin Brown

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