Who owns the float in a programme?

Question

When assessing delay to construction programmes how do you decide who owns the programme float - the project or the contractor?

Steve Hardy · Answer

Under the NEC forms, the contractor owns the float in its programme, as clause 63.5 provides that the delay is assessed by reference to the planned Completion. This is a reversal of the position under contracts which are silent regarding float (e.g. the JCT forms), where the project owns the float and therefore it is used up by the first relevant delay, irrespective of whether that was an employer or contractor risk event. The employer may therefore amend this provision so that the project owns the float and any Compensation Event is assessed by reference to the Completion Date, rather than planned Completion.

[See Charles Russell Spechleys solicitors article found at - https://www.charlesrussellspeechlys.com/en/news-and-insights/insights/constuction-engineering-and-projects/2019/its-about-time/ ]

Who owns the float in a programme?

Programme

float

Andrew Crawford

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