HIRE US

Assessment of extensions of time and additional cost under NEC3 (UK Infrastructure Scheme)

Project Type

Our Client was a rail and power contractor working on a £95m power upgrade project, under a main contract Transport for London (TfL).  The contract form was NEC3 Option A.

Description of Issues

The programme was complex with a number of inter-linked sectional completion dates and extensive levels of delay damages to reflect the risk of stabling of new rolling stock.  The Employer was responsible for the conceptual design, and the Contractor responsible for the detailed design.

Entitlements or Liabilities

Within 12 months of a 24-month programme, the Contractor was significantly behind programme and over budget and had notified CE’s but without any progression to conclusion. There were a number of reasons for delay, including problems with the conceptual design.  Consequently, the Contractor was facing the prospect of large cost deficits and crippling delay damages.

How did TREO help?

One of our Directors led a small team of associates to undertake a forensic review of records, programme and compensation events and worked behind the scenes establishing cause and effect and linkage to existing notified CE’s. In addition, through being involved daily, we assisted in ensuring robust and timely notification of new CE’s arising and the provision of time and cost quotations. This led to a negotiated outcome which included substantial changes to the sectional completion dates/completion date and an agreed increase to the TotP of c. £12m.

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