NEC Insight: Does omitting work from the Scope bring the Completion Date forward?
23 Jul 2023
It's a question that surprises many people new to NEC contracts.
If the Project Manager removes part of the Scope, surely the Contractor should finish earlier? It seems logical—but that's not how the NEC works.
Although omitting Scope may reduce the amount of work the Contractor has to do, and the Contractor may finish the work earlier, it does not automatically bring the Completion Date forward. Under NEC, the Completion Date can be moved later through the compensation event process, but it is not brought forward simply because less work remains.
Only the mechanisms of acceleration and acceptance of a Defect can bring forward the Completion Date.
If the effects of a compensation event bring forward planned Completion so it is now earlier than the Completion Date the Completion Date remains unchanged and the Contractor retains the time benefit of completing early.
What should contractors do?
When assessing an omission to the Scope:
- Do not assume that an omission automatically changes the contractual Completion Date.
- Assess the effects of the compensation event on planned Completion.
- Submit a compensation event programme showing the alterations to the Accepted Programme with the quotation.
- Continue to manage the programme to achieve the earliest planned Completion where commercially beneficial.
- Recognise that any request to bring forward the Completion Date should be dealt with under the acceleration provision.
Understanding the difference between planned Completion and the Completion Date is essential to administering NEC contracts correctly.
Practical takeaway
Removing work from the Scope may allow the Contractor to finish earlier in practice, but it does not change the contractual Completion Date. If the Project Manager wants an earlier contractual Completion Date, the correct mechanism is acceleration by agreement. Recognising this distinction helps ensure that compensation events are assessed correctly and avoids a common misunderstanding in NEC contract administration.
Need advice on your own project?
This article provides general guidance only and should not be relied upon as professional advice. If you're unsure how a compensation event is affecting your programme, I'm happy to help. Arrange a free 20-minute call with me to discuss your challenge.
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