Delay Analysis Under the NEC Contract

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Written By Paul Mcard

The NEC contract prescribes that an extension of time, delay and quantum be determined prospectively. The NEC contract requires the contractor to maintain an up-to-date program.

What type of prospective analysis should be used?

A prospective analysis is suitable when the project is ongoing, promoting the early assessment of an entitlement to an EoT at the time the delay event occurred. NEC contract prescribes the use of Time Impact Analysis 

Prospective Analysis in Action

Fluor vs Shanghai Zhenhua Heavy Industry [2018] 

“Prospective Analysis is the correct approach when considering matters such as the award of an extension of time...some form of retrospective analysis is required (when there are numerous competing factors).”
— Sir Anthony-Edwards Stuart

Key Takeaways

  1. Regular, contemporaneously updated programs are vital

  2. Time and cost impact of a compensable event must be determined at the time of the event

  3. However, this does not preclude the impact from being assessed after the fact in case of a dispute

 
 

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Paul Mcard
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