CIOB

TIME AND COST MANAGEMENT CONTRACT

10 USER NOTES
2015 EDITION
TIME AND COST MANAGEMENT CONTRACT USER NOTES

CIOB
TIME AND COST MANAGEMENT CONTRACT

10 USER NOTES
2015 EDITION

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015 1

TIME AND COST MANAGEMENT CONTRACT USER NOTES

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015 2

TIME AND COST MANAGEMENT CONTRACT USER NOTES

INTRODUCTION
The Time and Cost Management Contract (the Contract) is a revised edition of what was previously the CIOB’s Complex
Projects Contract, published in 2013. The name has been changed to reflect more clearly the core strengths of the Contract.
The Time and Cost management Contract is written for use with the Time and Cost Management Contract suite’s Subcontract
and Consultancy Appointment to provide a uniform approach to time cost and risk management from initiation to completion
of building and engineering projects.

USE OF THE CONTRACT

The Contract is most suitable for those projects which cannot be effectively managed intuitively and which require for their
success a more scientific approach to time and cost risk management than is usual on more simple projects. The Contract
can be used by companies, public authorities and private individuals in the UK and in any other country requiring the Contractor
to build only from a design prepared under the direction of the Employer, or for the Contractor to design the Works in whole
or in part. The Contract can be used for

build only of a design prepared under the direction of the Employer

build only of a design prepared under the direction of the Employer, but with the Contractor’s design of parts
design and build or turnkey projects in which the Contractor is responsible for both the design and construction
of the Works
construction management and management contracting (with some changes in terms required by Special Conditions).

PRICING
The Contract can be used with any method of pricing. Commonly, these include fixed price, target cost, measured term, fixed
fee, cost reimbursement, partnering and alliancing. The required method of pricing is to be described in the Special Conditions.

SPECIAL CONDITIONS
The standard documentation is expected to be supplemented by Special Conditions setting out the method of pricing, insurance
requirements, bonding and any other matter peculiar to the particular project for which it is used. The Special Conditions take
priority over these standard conditions.

SPECIFICATION
The standard documentation is expected to be supplemented by a Contract Specification identifying the standards of performance
required for the particular project.

TIME MANAGEMENT
The Contract requires competence in critical path network modelling, resource allocation and productivity analysis. The Working
Schedule is required to be in differing densities updated and revised on the rolling wave principle that constantly predicts the
currently attainable completion date, sectional completion dates and key dates.

COST MANAGEMENT
Cost management is by reference to the values attributed to the activities in the Working Schedule with progress updated from
databased progress records. The updated working schedule constantly predicts the out-turn cost of the Works and the value
of work done to date.

RISK MANAGEMENT
The Contract is a collaborative contract requiring the Contractor, its Subcontractors and the design Consultants to work with
the Time Manager, Cost Manager, Contract Administrator and the Employer to constantly appraise risk and to confer in taking
practical action to overcome and avoid unnecessary consequences of time and cost risks. The Time Manager is required to
collaborate with the Contractor, Subcontractors and Consultants. The Contract contains power to instruct acceleration both to
overcome the effects of a delay to progress and bring forward completion dates where practical.

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COLLABORATION

The Contract requires a collaborative approach to design in conformity with British Standards Institution’s BS 1192:2007, but
goes further in expressly requiring the Contractor and all Subcontractors and Consultants having a continuing role in design,
administration or quality control during the Works to participate in decision making, quality control, time management, cost
management and risk management.

BUILDING INFORMATION MODELLING

The Contract is suitable for Level 2 Projects1 and the collaborative production of information throughout the project life cycle.
It is compatible with the requirements of the British Standards Institution’s PAS 1192: Part 2, 2013 “Specification for information
management for the capital/delivery phase of construction projects using building information modelling” and it may be used
with any desired Building Information Modelling protocol.

INFORMATION TRANSFER
The Contract requires information to be transferred electronically either by readable file or in native file format and in accordance
with a File Transfer Protocol compatible with the British Standards Institution’s PAS 1192:4 2014 COBie.

STANDARD DOCUMENTATION
The suite comprises

Document No. 1, Contract Agreement, 2015 Edition

Document No. 2, Contract Conditions, 2015 Edition and
Document No. 3, Contract Appendices, 2015 Edition.
Document No. 4, Subcontract Agreement, 2015 Edition
Document No. 5, Subcontract Conditions, 2015 Edition
Document No. 6, Subcontract Appendices, 2015 Edition.
Document No. 7, Consultancy Appointment, 2015 Edition
Document No. 8, Schedules 8 and 9 for the appointment of the Time Manager, 2015 Edition
Document No. 9, Schedules 8 and 9 for the appointment of the Contract Administrator, 2015 Edition, and
Document No. 10 User Notes (this document).

DISCLAIMER
The Contract has been produced for use in a wide variety of construction and engineering projects. As with any standard
document, however, the unique circumstances of each project will demand careful consideration as to its suitability and that
of each provision. The parties will need to rely upon their own skill and judgement (and that of their advisers) in making use
of this or any other standard form comprised in, or for use in connection with, this Contract. Neither the Chartered Institute
of Building nor any author or contributor assumes any liability to anyone for any loss or damage caused by any error or omission
whether such error or omission is the result of negligence or any other cause.

1
Defined by the UK Government’s Construction Strategy for reducing construction costs. Cabinet Office, Government
Construction Strategy, May 2011, available at www.gov.uk/government.

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FEEDBACK
The Chartered Institute of Building would like to receive your comments on the Contract in use, which should be addressed to

SALEEM AKRAM
Director of Construction Innovation and Development

The Chartered Institute of Building

1 Arlington Square
Downshire Way
Bracknell
Berkshire
RG12 1WA
United Kingdom

T: + 44 (0) 1344 630 700

F: + 44 (0) 1344 306 434
E: sakram@ciob.org.uk

www.ciob.org

GRAPHIC DESIGN
Concept, design and artwork by Thompson Graphics

COPYRIGHT AND PUBLISHING

Published 2015 by the Chartered Institute of Building, Englemere, 1 Arlington Square, Downshire Way, Bracknell, Berkshire
RG12 1WA, United Kingdom, Registered Charity No. (England and Wales) 280795; (Scotland) SC041725.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording or otherwise, except in accordance with the provisions of the Copyright,
Design and Patents Act 1988, without prior written permission of the publisher. The Chartered Institute of Building, CIOB and the
Lion Logo are registered trademarks of the Chartered Institute of Building.

© The Chartered Institute of Building 2015

NON COMMERCIAL USE

The material featured in this document is the property of the CIOB and is subject to copyright. The material may be downloaded,
copied or reproduced for non-commercial purposes only, namely reproduction for research, private study or for limited internal
circulation within an organisation for the purpose of review. Copying for non-commercial purposes is subject to the material being;
accompanied by a sufficient acknowledgement, reproduced accurately, and not being used in a misleading context. To reproduce
the CIOB’s copyright material for any other use, you must contact publications@ciob.org.uk. Please note that the material may
not be reproduced for commercial gain without the CIOB’s express and direct permission.

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Contents
OVERVIEW 9
Introduction 9
Definitions 9

CONTRACT DOCUMENTS 11
Contract Agreement 12
Special Conditions 12
Contract Conditions 14
Appendices 14
Appendix A 15
Appendix B 15
Appendix C 32
Appendix D 32
Appendix E 33
Appendix F 34
Appendix G 35
Contract Model 35
Contract Drawings 35
Contract Specification 36
Contract Bill of Quantities 37
Contractor’s Pricing Document 39
Contractor’s Design 42
Development Schedule 42
Other documents forming a part of the Contract 42

ROLES AND RESPONSIBILITIES 43

Employer 43
Contractor 43
Subcontractors 43
Consultants 47
Contract Administrator 51
Time Manager 51
Cost Manager 52
Auditor 52
Listed Persons 53

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KEY FEATURES 54
Information Transfer 54
Distribution 54
Publication 56
The Dynamic Time Model 58
Schedule Update 60
Revision 61
Schedule Quality Control 61
Schedule Software 62
Schedule Content 62
Milestones, Activities and Levels of Effort 62
Time contingencies and float 63
Work Breakdown Structure and Activity Codes 65
Progress Records 66
Improved Progress, Acceleration and Recovery 67
Improved progress 67
Instructed recovery 67
Instructed acceleration 68
Redress for failure to comply with an instruction to recover or accelerate 68
Extension of Time, Compensation and Concurrency 69
Extension of time 69
Compensation for delay and/or disruption 72
Compensation for prolongation 73
Concurrency 74
Valuation 75
Valuation of Variations 75
Valuation of Delay to Progress 76
Valuation of Extended Preliminaries and/or Overheads and Profit 77
Forecasting the Financial Effect of Change on the Predicted Cost 77
Payment 78
Exchange of Information 79
Early Warning and risk management 79
Pre-existing conditions 79
Information, Drawings, Details, and Anything the Employer is to Provide 80
Employer’s Reference Design 81
Contractor’s Design 81
Building Information Modelling 83

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Insurances 84
Testing and Completion Testing 84
Termination 85
Insolvency 85

ISSUE AND DISPUTE RESOLUTION 88

Issue Resolution 88
Adjudication 91
Final Dispute Resolution 92
Court 92
Arbitration 92

Model Time-Line 94
Flow Chart No. 1 - Failure to Publish 95
Flow Chart No. 2 - Working Schedule 96
Flow Chart No. 3 - Progress Records 97
Flow Chart No. 4 - Update of Working Schedule 98
Flow Chart No. 5 - Revision of Working Schedule 99
Flow Chart No. 6 - Early Warning 100
Flow Chart No. 7 - Extension of Time and Compensation 101
Flow Chart No. 8 - Concurrency 102
Flow Chart No. 9 - Valuation 103
Flow Chart No. 10 - Payment 104
Flow Chart No. 11 - Termination 105
Flow Chart No. 12 - Issue Resolution 106

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Overview

INTRODUCTION

The Contract requires a collaborative approach to the management of design, quality, time and
cost. The Working Schedule and Progress Records (which are to be inspected and accepted by
an experienced Time Manager and independently audited for quality assurance) are at the core of
management. They are the tools by which all time and time-related cost issues are to be
determined and are to conform with the standards required by the Conditions, Appendices and
the CIOB’s Guide to Good Practice in the Management of Time in Complex Projects.

DEFINITIONS

The Contract contains many of the terms familiar to other users of standard forms of contract,
however, because the Contract is intended to be operated using modern information technology,
there are many terms which do not appear in other standard forms of contract. Appendix A
identifies the capitalised terms used in the Contract and their meanings.

Timescales under the Contract are identified in Business Days, which are defined in Appendix A
as “Any days other than those indicated in the Special Conditions and/or the Contractor’s Pricing
Document as being days during which no work is to be carried out.”

In application, for example, where the Employer states in the Special Conditions that “Business
Days exclude weekends and Bank Holidays” and in the Contractor’s Pricing Document, the
Contractor states “Business Days exclude 28 March to 1 April 2016 and 23 December 2016 to
6 January 2017”, the global working calendar in the Working Schedule will define as non-working
days the more restrictive days of every weekend, Bank Holiday and the days 28 March to 1 April
2016 and 23 December 2016 to 6 January 2017.

Similarly, Working Hours are defined in Appendix A as “Any hours other than those indicated in the
Special Conditions and/or the Contractor’s Pricing Document as being hours during which no work
is to be carried out”.

So, for example, where the Working Hours are defined in the Special Conditions as 7.00 am to
6.00 pm, and the Contractor states in the Contractor’s Pricing Document that it intends to work from
8.00 am to 12.00 noon and from 1.00 pm to 5.00 pm, the global Working Hours in the Working
Schedule will be defined as the more restrictive period of 8.00 am to 12.00 noon and from 1.00 pm
to 5.00 pm.

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In the absence of any specified limitation on Business Days and/or Working Hours, the Contractor
will be assumed, for the purposes of the Working Schedule, to work 365 days per year (366 in a leap
year) and 24 hours per day and any failure to do so may be interpreted as suspension of work. It is
thus very important that any required limitation on Business Days and/or Working Hours is stated in
the Special Conditions and/or the Contractor’s Pricing Document.

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Contract Documents

The Contract comprises three documents, the Contract Agreement,1 the Contract Conditions2
and the Contract Appendices.3 These will typically be supplemented by Special Conditions,4
A Contract Model or Contract Federated Model,5 Contract Drawings,6 and Contract Specification,7
Contract Bill of Quantities,8 Contractor’s Pricing Document,9 Contractor’s Design,10 Development
Schedule and other Contract Documents11 the aggregate of which forms the Contract Documents
listed in the Contract Agreement.

Clause 3.5 requires the Contractor to check the Contract Documents to ascertain whether there is
any actual or potential impossibility, clash, conflict, discrepancy, omission, error, inconsistency and/or
ambiguity in or between any of them, or between any of them and Applicable Law.12

Unless a Clause 3.5 issue is covered by a Clause 3.3 or 3.4 priority, or it involves Contractor’s design,
any matter notified is to be corrected by an Instruction to be valued as a Variation.13 In order to
discourage the Contractor from failing to properly inspect the Contract Documents, or if inspected
from not disclosing any such issue until the last moment, the Contract provides that in regard to
anything not notified to the Contract Administrator within 20 Business Days of the date upon which
it is intended that the work affected is to be carried out, any consequential delay and delay-related
costs arising out of any such instruction for correction are at the Contractor’s risk.14

1
See “Contract Agreement”, on page 12
2
See “Contract Conditions”, on page 14.
3
See “Contract Appendices”, on page 14.
4
See “Special Conditions”, on page 12.
5
See “Contract Model”, on page 35.
6
See “Contract Drawings”, on page 35.
7
See “Contract Specification”, on page 34.
8
See “Contract Bill of Quantities”, on page 37.
9
See “Contractor’s Pricing Document”, on page 39.
10
See “Contractor’s Design”, on page 42.
11
See “Development Schedule” and “Other documents forming a part of the Contract”, on page 42.
12
Clause 3.5. This requires the Contractor to check for conflicts with the mandatory laws affecting the project notwithstanding that
they may be laws of a jurisdiction different from that of the governing Law of the Contract.
13
Clause 3.7.
14
Clause 3.8.

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CONTRACT AGREEMENT

The Contract Agreement is the operative part of the Contract, which joins the other parts
together and binds them to it. It is a brief document setting out

the Date of Contract

the names and details of the Employer and Contractor
the nature of the work and/or services to be provided by the Contractor
the description and address of the Works
The parties’ Authorised Representatives
the names and details of those having an administrative role under the Contract
the Law of the Contract
the list of Contract Documents
the price for which the Works are to be completed, and
the execution requirements.

In its published form, the Contract Agreement is designed to be operated under the Law of
England and Wales and to be executed as a deed. Wherever any other Law of Contract (that is,
the Law of the Contract is not that of England and Wales), or another form of execution is required
(for example, it is for execution under hand) the Contract Agreement must be edited accordingly.
The Contract Agreement makes no mention of initialling or signing the Contract Documents.
Nonetheless, it is common on high value construction contracts to page-turn and initial each page
of the Contract at execution, or to initial the front page of each separate contract document and
to also initial any printed pages which feature manuscript amendments or insertions. Unless
agreed otherwise, in regard to Insurances,15 a Performance Bond,16 Advance Payment Bond,17
Holding Company Guarantee,18 or where the Contractor is required to design the whole of
the Works,19 the parties’ obligations commence on the Start Date identified in Appendix B.

SPECIAL CONDITIONS

The Special Conditions take priority over the Contract Conditions.20 This is the project-specific
Contract Document which identifies any change to the terms of the standard Contract Conditions
whether by addition, deletion or amendment.

15
Clause 10.
16
Clause 9.1.2.
17
Clause 9.2.
18
Clauses 9.1.1.
19
See Clauses 15.1 and 37.5.
20
Clauses 3.3 and see also “Contract Conditions”, on page 14.

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Those matters referred to in the Contract Conditions and Contract Appendices as to be defined
in the Special Conditions are

The terms of any Connected Contract

any person permitted to use a Model and identified as Design User
The Site Services to be provided by the Employer for the Contractor’s use in carrying
out the Works.
Any special terms by which the status of the Employer’s Reference Design is to be
identified
Any Contractor obligations in relation to a design prepared by or under the direction
of the Employer21
The documentation required from the Contractor in order to demonstrate its financial
stability22
The terms on which access to the Site may be granted to the Contractor before the
Access Date23
The descriptions of any defined Sections and their Sectional Commencement and
Sectional Substantial Completion Dates24
The descriptions of any defined work to be completed by a Key Date and the specified
Key Dates25
Any limitation on the powers granted to the Employer’s Authorised Representative26
The form of any required Collateral Warranty27
The form of any required Holding Company Guarantee28
The form of any required Performance Bond29
The form of any required Advance Payment Bond30
Any insurances to be taken out by the Contractor and those to be taken out by the
Employer including the risks, the term and the insured sum31
Any special grounds for the rejection of any particular submission32
The terms and details of any joint access or joint possession where the Contractor does
not have sole access and possession33
Any licences or permits that the Contractor is not required to obtain34

21
Clause 3.6.
22
Clause 4.6.
23
Clause 5.3.
24
Clause 5.4.
25
Clause 5.5.
26
Clause 6.3.
27
Clause 8.1.
28
Clause 9.1.1.
29
Clause 9.1.2.
30
Clause 9.2.
31
Clause 10.2.
32
Clause 13.2.5.
33
Clause 27.3.
34
Clause 28.1.

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The terms under which the Employer is to have non-exclusive use of any part of the
Works before Substantial Completion35
The terms under which a Subcontractor can achieve substantial completion of the
Subcontract Works before Substantial Completion of the Works36
The form required of any Retention Bond37

CONTRACT CONDITIONS

The Contract Conditions sets out the standard terms and conditions under which the Works are
to be carried out. The Contract anticipates the completion of project-specific Special Conditions38
(referred to above) containing the terms and conditions specific to the particular project for which
it is being used.

The Contract also anticipates the completion of a Contract Specification39 describing the procedures
and standards of performance, in conformity with which the Contractor is to price and construct the
Works.

CONTRACT APPENDICES

There are seven separate appendices. Appendix A40 contains the definitions of terms and
Appendix G41 contains the Issue Resolution provisions, neither of which require any data to be
added. The project-specific data of Appendices B,42 C,43 D,44 E 45 and F 46 must be inserted by
the Employer or the Employer’s advisors and incorporated in the documents upon which the
Contractor’s Pricing Document will be based.

If a particular project requires data additional to that set out in the seven Appendices and there is
insufficient space provided in the standard form, the relevant part of the Appendix should be noted
to refer either to the clauses of the Special Conditions47 or to the parts of the Contract Specification48
which contain the relevant data.

35
Clause 53.5.
36
Clause 54.1.
37
Clause 59.4.
38
See “Special Conditions”, on page 12.
39
See “Contract Specification”, on page 36.
40
See “Appendix A”, on page 14.
41
See “Appendix G”, on page 34.
42
See “Appendix B”, on page 15.
43
See “Appendix C”, on page 32.
44
See ”Appendix D”, on page 32.
45
See “Appendix E”, on page 33.
46
See “Appendix F”, on page 34.
47
See “Special Conditions”, on page 12.
48
See “Contract Specification”, on page 36.

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APPENDIX A

This contains definitions of the capitalised terms used in the Conditions of Contract.

APPENDIX B

This contains the discrete project data required to give effect to the terms and conditions which
require project-specific contract data. Where such data is essential to the operation of the Contract,
default data is provided so that if anything is not completed by the user, the Clause will still function
by reference to the default data.

The default periods in Business Days49 assume a 5-day working week. Where a longer working
week is anticipated the project specific data for the relevant periods or intervals should be inserted,
otherwise the real-time period for performance will become correspondingly more difficult to
achieve.50

Listed Persons51

The Listed Persons are all those consultants acting for, or under the direction of the Employer,
other than the Contract Administrator, 52 who, during the course of the Works, are intended to have
continuing responsibilities for design, supervision, testing, inspection, or administrative functions
under the Contract. The Listed Persons must include the Time Manager 53 and, the Cost Manager. 54
A default listing of those disciplines which might be expected to be Listed Persons in a building
project is given in Appendix B, to which is to be added the particular details of the appointed Listed
Person against each relevant discipline. There is space provided in Appendix B for two additional
disciplines to be added. If other disciplines are required, or other data is to be made available, it
should be identified in the Special Conditions.

49
See also “Overview, Definitions”, on page 9.
50
For example, in some countries a 6-day or 7-day working week may be encountered and in some circumstances, even where a 5-day working week
is normal, a 6- or 7-day working week will be needed. It is important that the Business Days and Working Hours are identified in the Special Conditions
and/or the Contractor’s Pricing Document, otherwise, by default, the Contract will be based on 365 days/year 24 hours per day. See “Overview,
Definitions”, on page 9.
51
See “Roles and Responsibilities, – Listed Persons”, on page 53.
52
See “Roles and Responsibilities, - Contract Administrator”, on page 51.
53
See “Roles and Responsibilities, – Time Manager”, on page 51.
54
See “Roles and Responsibilities, – Cost Manager”, on page 52.

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Method of Measurement 55

Where quantities are provided to determine the scope of part of or the whole of the Works,
or where a schedule of descriptions is provided for pricing to be used in the valuations of variations,
it is essential to specify the rules by which the quantities will be or have been measured. In the
UK, quantities for building works were formerly measured by reference to “The Standard Method
of Measurement” (7th Edition1998),56 commonly referred to as SMM7. The “New Rules
of Measurement: Order of Cost Estimating and Elemental Cost Planning” has been published in
three volumes, volume 2 of which is entitled “Detailed measurement of building works” commonly
referred to as NRM2), and supersedes SMM7. Where the Works primarily consist of civil or other
engineering works, a different method of measurement will be appropriate and must be stated.

Holding Company 57

Unless stated otherwise the Contractor’s Holding Company is deemed to be its ultimate parent
company. When the Contractor is a member of a group of companies, it may be appropriate in some
instances, depending on the asset-holding structure of the group, for the Holding Company to be a
different group company of the Contractor’s from its ultimate parent company.

Monetary currency 58

This should be identified as the currency of the country in which the Site is situated. If none is
identified, the default currency applicable to the Works is the pound sterling. If parts of the Works
are to be paid in currencies other than that applicable to the Works,59 those parts and the currency
in which payment is to be made must be identified in the Special Conditions.

Base Date 60

The Base Date is the operational date to be used by the bidding Contractor in identifying the status
of relevant information for the purposes of pricing the Works. The use of the Base Date for pricing
ensures that competing bidders use compatible pricing data and that if changes in law are an
allowable ground for adjusting the price or the Works are to be priced on a fluctuating basis61 (the
terms of which must be identified in the Special Conditions), the Base Date is the date from which
the cost of the Works will be adjusted or will fluctuate. If none is stated, it is 20 Business Days
before the earlier of the Start Date and the Access Date.

55
See also “Contract Bill of Quantities”, on page 37.
56
Both documents are published by Royal Institution of Chartered Surveyors.
57
See “Appendix B, Holding Company”, on page 16.
58
Clause 2.3.
59
For example, design or fabrication work carried out in other jurisdictions.
60
Clause 2.4.
61
Clause 60.1.7.

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Access Date62

Unless access to the Works is to be made available in Sections,63 this is the date upon which the
Employer is to provide access to and possession of the whole of the Site to the Contractor. The
Contractor is obliged to commence the Works on Site on the Access Date stated.64

The Contractor is deemed to have satisfied itself that the access provided is satisfactory for the
purpose of carrying out the Works.65

Apart from access for the Employer, Contract Administrator, Time Manager, Cost Manager the Listed
Persons and other persons authorised by the Employer,66 the Conditions assume that unless
Sectional Access or Sectional Completion applies67 or a part of the Works is taken into Partial
Possession,68 the Contractor will have sole possession of the Site until Substantial Completion.69
If the Contractor is intended to have access only in common with others then the details of those
others together with the Access Date, the purpose of that work, its expected timing and
dependencies and other relevant information should be set out in the Special Conditions.

Date for Substantial Completion70

In the absence of any extension of time71 or instructed acceleration for an earlier date72 this is the
date by which the Contractor is contractually obliged to complete the Works.

Start Date73

Where the Contractor is required to design the Works,74 or where for particular purposes set out
in the Special Conditions, the Contractor is required to undertake particular obligations before the
Access Date on which the Works on Site are to commence, the Contract makes provision for a
separate Start Date to be identified.

62
Clause 5.1.
63
Clause 5.4.
64
Clause 5.2.
65
Clause 27.1.
66
Clause 27.2.
67
Clause 5.4.
68
Clause 53.
69
Clause 27.3 and see “Special Conditions” on page 12.
70
Clause 5.2.
71
See “Key Features, Extensions of Time, Compensation and Concurrency, Extension of time”, on page 59.
72
Improved Progress, Acceleration and Recovery on page 67.
73
Clause 5.3.
74
See Clauses 15.1 and 37.5.

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Dates for Sectional Access75 and Sectional Completion76

The table in Appendix B provides for the identification of up to ten defined Sections, the dates
upon which the Employer intends to grant access and/or possession of and the dates by which
the Contractor must complete each Section. The Sections must be described in the Special
Conditions77 and identified on the Contract Drawings, Contract Specification, Contract Model, and/or
the Contract Bill of Quantities. If the Contractor is intended to share possession of a defined Section
with others, then the details of what others, the purpose, expected timing and dependencies and
other relevant information should be set out in the Special Conditions.78

Key Dates79

Key Dates may be either a logical80 or fixed date81 by which any described submission, approval,
or supply is to be made of information, plant, materials or goods or the start or completion of
any specified trade, the work of any Subcontractor, supplier or sequence, or any other thing is
to be achieved.

Appendix B provides for up to 34 separate Key Dates to be listed with the Activity ID of the
relevant Milestone and performance dates. The details of each Key Date and what must be
achieved in order for it to be met must be set out in the Special Conditions.82 The status of Key
Dates to be achieved must be described in a way which renders compliance capable of being
objectively assessed, otherwise there will be a risk of ambiguity and they may be unenforceable.
The Contractor is obliged to perform by the Key Dates but, if the Contractor fails to do so, the
Employer will have to prove it has suffered loss before it can recover general damages from the
Contractor.83

75
Clauses 5.4.1 and 5.4.3.
76
Clauses 5.4.1 and 5.4.4.
77
Clause 5.4.1.
78
Clause 27.3 and see “Special Conditions” on page 12.
79
Clause 5.5.
80
For example, the date by which the Works are intended to be “weather-proof” may be indicated by a logical Key Date. Similarly, the date when plant
to be supplied by the Employer is required to be delivered for incorporation into the Works may be indicated by a logical Key Date, logically linked
to completion of the Activities which must precede the delivery. The predicted date on which the Works will achieve the status of “weather-proof”
or the plant is required to be delivered will then change dynamically in accordance with the progress of the works and its planning as the Working
Schedule is updated, revised or impacted.
81
For example, the date upon which the Employer warrants that it will supply Permanent Plant to the Works may be identified as a fixed calendar date.
82
Clause 5.5 and see “Special Conditions”, on page 12.
83
Key Dates are not subject to Liquidated Delay Damages. See Clause 57.

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Email Subject Code Data84

Ideally, all correspondence and other information flow should be managed by a document
management system (commonly referred to as a “DMS”) capable of making sure that parties
who are required to see documents actually get them and respond. However, if ordinary email is
used then, in order to assist parties in managing their mail, a facility is included here for a subject
code to be inserted. Subject to proof to the contrary, email is deemed to have been received when
sent provided that the stated subject code is used in the transmittal.

Holding Company Guarantee85

Where a Holding Company Guarantee is required, this must be indicated and the form in which the
guarantee is to be made is to be included in the Special Conditions. If not stated in Appendix B to be
provided, by default a Holding Company Guarantee is not required.

Performance Bond86

Where a Performance Bond is required, this should be indicated and the form in which the bond
is to be provided is to be included in the Special Conditions. If not stated in Appendix B to be
provided, by default a Performance Bond is not required.

Advance Payment Bond87

Where an Advance Payment Bond is required, this must be indicated and the form in which the bond
is to be made is to be included in the Special Conditions. If not stated in Appendix B to be provided,
by default Advance payment Bond is not required.

Status of the Reference Design88

Where the Contractor is required to design a part, or the whole of the Works and the Employer
provides any design work to illustrate its requirements in whole or in part, the status of the
Employer’s design must be identified. If it is warranted to be developed to a particular Design Stage,
or to a project-specific status identified in the Special Conditions, the Employer will be responsible
for the specified accuracy of that design to that Design Stage or status. Alternatively, it can be
identified as “for information purposes only and may not be relied upon by the Contractor for

84
Clause 4.22.
85
Clause 9.1.1.
86
Clause 9.1.2.
87
Clause 9.2.
88
Clause 11.1.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

any purpose” or it can be developed to a particular standard identified in the Special Conditions.
If nothing is stated, or the Design Stage or Design Level of Development is not stated against
option 2 the default status of any Reference Design provided is that the Reference Design is
provided for information purposes only and may not be relied upon, for any purpose.

Building Information Modelling Protocol89

This is the document which sets out the protocol for collaborative design where independent
Models or a Federated Model are required to be used. If none is stated, the default protocol is that
produced by the American Institute of Architects, G202–2013 or such later edition current at the
Base Date.90

It is important that whatever Building Information Modelling Protocol is adopted, Tables 1 and 2
of Apoendix C are configured to be consistent with it.

It should also be noted that by Clause 17.4 where there is any inconsistency between Clause 17 and
the Building Information Modelling Protocol, Clause 17 is to prevail.

Interval for Progress Meetings91

Progress Meetings are the collaborative forum in which the details of the Contractor’s Working
Schedule, and any revision or update of it, is reviewed in the light of the published Progress Records.
It is also the forum in which the calculated time and cost effect of any Event is to be reviewed.

By the rules of interpretation in Clause 2.5.4, a meeting includes a virtual meeting by video or
telephone conference, so long as the substance of it is recorded in writing.

No less than 5 Business days before each Progress Meeting, the following are required to be issued
for review by the meeting.

by the Contract Administrator

• Database of the Contractor’s general submissions and responses92
• Database of the Contractor’s design submissions and responses where design is not
using BIM93
• Instructions regarding any changes in the Employer’s time risk contingencies94

by the Time Manager

89
Clauses 17.1.1 and 17.2.2.1.
90
http://www.aia.org/aiaucmp/groups/aia/documents/pdf/aiab099086.pdf.
91
Clause 30.1.
92
Clause 13.9.
93
Clause 16.9.
94
Clause 47.1.

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• Database of the Contractor’s submissions of its Working Schedule and Planning Method
Statement and responses95
• Database of the Contractor’s submissions of its Progress Records and responses96

by the Contractor
• Details of any early warning and the impacted Working Schedule and Planning Method
Statement identifying the calculated effect of an Event97
• Notice of any loss or expense that is likely to be caused, is being caused or has been
caused by an Employer’s cost risk event98
• Planned changes to any Contractor’s time risk contingencies.99

The interval between Progress Meetings should be not so short that there is an unreasonable
burden placed upon those having to prepare information for it, nor so long that the participants are
deprived of a reasonable opportunity to manage the predicted consequences of emerging risks. If
no period is stated then, by default, Progress Meetings are to be held 20 Business Days after the
earlier of the Start Date or Access Date and at intervals of 20 Business days thereafter.

Status Interval for Publication of Progress Records100

This is the interval at which the Contractor is required to regularly status the Progress Records
database and publish it for acceptance so that it may be checked and accepted by the Project
Time Manager, or rejected or conditionally accepted (with reasons) within 5 Business Days of
the submission.101

The obligation to publish for acceptance the Progress Records database102 commences on the
stated interval following the Start Date or the Access Date, whichever is the earlier. If none is stated,
the default period is 10 Business Days after the earlier of the Start Date and Access Date and at
intervals of 20 Business Days thereafter. This requires the publication of the Progress Records
10 Business days before the default date of the Progress Meeting at which they and the Update
Working Schedule (which relies upon them) will be considered.

95
Clause 37.11.
96
Clause 39.5.
97
Clause 43.6.
98
Clause 44.1.
99
Clause 46.1.
100
Clause 39.2.
101
Clause 39.3.
102
For the meaning and implications of publication see Clauses 2.5.8 and 36.

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The model time-line on page 82 shows the relationship of the publication of Progress Records
to the update of the Working Schedule, the Progress Meeting dates and valuation and payment.
The optimum frequency for republication during the course of the Works of data collected will
usually be weekly, fortnightly or monthly intervals, depending upon the number of records
likely to be available for checking at the most intense period of working.103 The interval for update
of the Working Schedule is 5 Business Days after acceptance of the Progress Records.

Status Interval for Revision of Working Schedule 104

Whilst all aspects of the Working Schedule should be reviewed and revised from time to time,
the standard revision interval is related to the change from Medium Density to High Density of the
work in which the logic will change from that which is generally Activity-based to what must be
resource -and/or location-orientated.

The obligation to publish105 for acceptance the Draft Updated Working Schedule commences on the
stated interval following the Start Date or the Access Date, whichever is the earlier.

The default first date for publication of a Draft Revised Working Schedule is 5 Business Days after
the first Progress Meeting. The purpose of delaying the first revision until after the Progress meeting
is to permit a proper review of the progress achieved to be made, independently of the effects
of any change of intent, and to stagger the update and revision submissions throughout the duration
of the Works thereafter. The model time-line on page 94 shows the relationship of the publication
of the revision of the Working Schedule to the publication of Progress Records, update of the
Working Schedule and the dates of Progress Meetings.

The change from Activity-based to resource- and/or location-based logic is expected to be

incorporated in a revision made 60 Business Days ahead of the Data Date on which such work is
scheduled to be carried out. In most projects unless there are peculiar reasons for reducing
the High Density period to below 60 Business Days, a status interval of 20 Business Days will
be adequate. This provides at least three reviews of the sufficiency of information, the proposed
logic, the resources to be made available and their expected productivity before the work is actually
carried out. If nothing is stated the interval is 20 Business Days.

103
Clause 40.1.
104
Clause 41.1.
105
For the meaning and implications of publication see Clauses 2.5.8 and 36.

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Interval Between Schedule Quality Assurance Audits106

After appointment of the Contractor, an initial validation of the Contractor’s design of the Working
Schedule and Planning Method Statement for compliance with Appendix D and its intentions for
keeping Progress Records in compliance with Appendix E should be carried out on the materials
submitted prior to commencement.107

Subsequent and more detailed audits should then be carried out on the Progress Records, Working
Schedule and Planning Method Statement at regular intervals and prior to any new work stage
commencing.

When considering the frequency of schedule quality control audits, it should be borne in mind that
the longer the period between audits, the longer the examination will take and the more serious are
likely to be the consequences of any errors found. Accordingly, depending on the nature of the work
being carried out, detailed audits should be carried out against Progress Records, the Working
Schedule and Planning Method Statement at intervals no greater than two to three times the status
interval for submission of the Progress Records.108 If nothing is stated, the interval is 60 Business
Days from the earlier of the Start Date and the Access Date.

Post-Substantial Completion Retention Period109

This is the period after a Certificate of Substantial Completion has been issued,110 or Partial
Possession has occurred,111 during which the Contractor is responsible for making good at its own
expense any defects notified to it.112

Liquidated Delay Damages113

There are three issues to be considered in relation to Liquidated Delay Damages

1. Whether they are to apply at all, to the Works or to any Section.

2. If they are to apply in relation to the Works as a whole, then the limit on the period of
delay and the rate at which the Liquidated Delay Damages are to apply
3. If they are to apply to any Section, then the identity and value of that section together
with the limit on the period of delay and the rate at which Liquidated Delay Damages
are to apply.

106
Clause 42.2.
107
Clause 42.1.
108
Clause 39.2.
109
Clause 58.
110
See Clause 48.
111
See Clause 49.
112
See Clause 56.
113
Clauses 57.1 and 57.2.

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This part of Appendix B applies only to the first issue. If it is intended that Liquidated Delay Damages
should be applied for the failure of the Contractor to achieve Substantial Completion of the Works
or any Section by the Due Date, this must be indicated. If not indicated, then by default Liquidated
Delay Damages do not apply.

Liquidated Delay Damages for Failure to Complete the Works114

Where Liquidated Delay Damages for failure to complete the whole of the Works by the Relevant
Substantial Completion Date apply, they are to be calculated by reference to the stated rate for
the period between the Date identified in the Certificate of Failure to Complete and the Relevant
Substantial Completion Date,115 up to the cap specified, if any, on the period of delay against which
they may be levied.116

The rate of Liquidated Delay Damages should be that which represents, at the Base Date,117 the
reasonably foreseeable loss that the Employer is likely to suffer if the Works as a whole are not
completed by the Date for Substantial Completion.

Notwithstanding that the Contract records that the parties are agreed that the rate of Liquidated
Delay Damages is a pre-estimate of the Employer’s loss,118 care should be taken to ensure that the
rate inserted is compliant with Applicable Law. A figure inserted as Liquidated Delay Damages which
is not a genuine pre-estimate of loss, but which is intended to penalise the Contractor rather than
to compensate the Employer, may be disallowed as a penalty at common law.119 Accordingly, the
Contractor must be made aware of the calculation of Liquidated Delay Damages before the
Contract is entered into and both parties should take appropriate legal advice on and ensure that
they are content with the manner of calculation and that they stated Liquidated Delay Damages
represent a genuine pre-estimate of likely loss.

The point is undecided in English law (although there is obiter authority)120 that where liquidated
damages are construed as a penalty everything falls away including any cap or limit on liability for
liquidated damages.

Accordingly, to overcome the obvious difficulties that such an interpretation brings, the Contract
provides that if for any reason the provisions for Liquidated Delay Damages are subsequently found
to be unenforceable at law, the Liquidated Delay Damages calculated for the period of delay up to

114
Clause 57.1. See also “Appendix B, Damages for failure to complete a Section”, on page 25.
115
Clause 57.1.
116
Clause 57.4.
117
Clause 2.4 and see also “Appendix B, Base Date” on page 16.
118
Clause 57.3.
119
The concept is not unique to the common law, the French Civil Code, for example, also has the comparable concept of clause pénale.
120
See Steria Ltd v Sigma Wireless Communications Ltd, [2007] EWHC 3454 (TCC) at 114.

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the limit on the period of delay, or, if none, the sum calculated by reference to the rates payable as
Liquidated Delay Damages for the full period of delay to completion, are to act as a cap on the
recoverable general damages for delay.121

Provided that the Contract Administrator has issued a Certificate of Failure to Complete122 the
Employer may deduct or withhold the Liquidated Delay Damages at the specified rate from monies
due to the Contractor under any subsequent Notice of Payment Due and/or recover the amount due
as a debt.123

Liquidated Delay Damages for Failure to Complete a Section124

Where it is indicated that Liquidated Delay Damages are to apply and it is intended that they are
to apply for failure to complete by one or more Sectional Substantial Completion Dates the following
information must also be identified in relation to each applicable Section

1. The identity of the relevant Section

2. The value of the relevant Section calculated by reference to the data from the Contractor’s
Pricing Document
3. The rate of Liquidated Delay Damages to apply in relation to the relevant Section, and
4. The limit on the permitted period of delay to the relevant Section.

The identity of the relevant Section must be that stated in the Special Conditions and identified in
relation to the Contract Drawings, Contract Specification, Contract Model and/or Contract Bill of
Quantities.

The value of the relevant Section is important where Liquidated Damages are leviable for a failure
to achieve Substantial Completion of the Works as well as a failure in relation to an identified
Section.125 Without the value of the Section it will not be possible to calculate the correct residual
value of the Liquidated Delay Damages applicable to the remainder of the Works, which could render
them unenforceable.

Provided that the Liquidated Delay Damages can be calculated to apply they will be calculated by
reference to the relevant rate for the period between the date identified in the Certificate of Failure
to Achieve Substantial Completion and the relevant Sectional Substantial Completion Date.126

121
Clause 57.4.
122
Clause 56.1.
123
Clause 57.5.
124
Clauses 5.4.1, 5.4.2 and 57.2.
125
Clause 5.4.2.
126
Clause 57.2.

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Where a limit on the period during which Liquidated Delay Damages is indicated to apply in relation
to the Relevant Section it will provide a basis for the calculation of a cap for the purposes of general
damages, if Liquidated Delay Damages are found to be unenforceable127 and it will also identify a
date after which the Employer may terminate for undue delay.128

The rate of Liquidated Delay Damages should be that which represents, at the Base Date,129 the
reasonably foreseeable loss that the Employer is likely to suffer if the relevant Section is not
completed by the relevant Sectional Substantial Completion Date.

Notwithstanding that the Contract records that the parties are agreed that the rate of Liquidated
Delay Damages is a pre-estimate of the Employer’s loss,130 care should be taken to ensure that
the rate inserted is compliant with Applicable Law. A figure inserted as Liquidated Delay Damages
which is not a genuine pre-estimate of loss in relation to the relevant Section, but which is intended
to penalise the Contractor rather than to compensate the Employer, may be disallowed as a penalty
at common law.131

Accordingly, the Contractor must be made aware of the calculation of Liquidated Delay Damages
before the Contract is entered into and both parties should take appropriate legal advice on and
ensure that they are content with the manner of calculation and that they stated Liquidated Delay
Damages represent a genuine pre-estimate of likely loss.

Limit on the period of delay to completion132

The Employer should identify a long-stop period, after the end of which it is no longer willing to
accept Liquidated Delay Damages in compensation for culpable delay and after which it is entitled
to terminate the Contractor’s employment for default.133 If no limit is specified on the period of delay
for which Liquidated Delay Damages may be taken, then the Contractor’s employment may not be
terminated for default on the grounds of excessive delay to completion alone and the Employer is
then left with the choice of:

leaving the Contractor to complete when it can, or

terminating the Contractor’s employment without fault.134

127
Clause 57.2.
128
Clause 69.3.1.3.
129
Clause 2.4 and see “Appendix B, Base Date”, on page 12.
130
Clause 57.3.
131
The concept is not unique to the common law, the French Civil Code, for example, also has the comparable concept of clause pénale.
132
Clause 57.1.
133
Clause 69.3.1.3.
134
Clause 68.

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Limit of Liability135

If the Contractor fails to comply with properly and reasonably issued instructions for recovery of
the Contractor’s culpable delay,136 or for acceleration,137 and, as a result, the Contractor fails to
achieve Substantial Completion by a Relevant Substantial Completion Date then, following the
Contract Administrator’s certificate to that effect,138 the Employer will be entitled to the specified
Liquidated Delay Damages139 for the Contractor’s failure to complete by the Relevant Completion
Date. However, aggregated Liquidated Delay Damages for delay to completion to which the
Employer is then entitled will not always adequately compensate for the loss that the Employer
actually suffers when the Works are not completed on time. Accordingly, Clause 50 provides that
where, contrary to instructions, the Contractor fails to take the reasonable and appropriate action
it was instructed to take, the Contractor will become liable for the actual losses the Employer
suffers over and above the Liquidated Delay Damages recoverable.

Where the actual losses are expected to be so high as to not be realistically payable (or commercially
viable for the Contractor), this clause provides for the Contractor’s liability to be capped at a
commercially acceptable level.

Retention Fund for Making Good Defects140

The Contract provides the Employer with two alternatives regarding the security it may need if it
incurs the cost of making good defects: a retention fund or a Retention Bond.

The purpose of the retention fund is to provide an accruing portion of the Current Contract Value141
to be set aside against the costs likely to be incurred by the Employer in arranging to have defects
made good,142 if such defects are not corrected by the Contractor at its own expense within the
required period.

A figure of between 2% and 10% retained may be considered reasonable depending upon the scale,
complexity and risk of default. However, the more supervision and testing carried out during the
Works, the more reliable the Contractor and the less scope there is for defects, then the lower the
proportion of Current Contract Value retained against defects should reasonably be. If none is stated,
the default retention fund is 2.5% of the Current Contract Value.

135
Clause 58.
136
Clause 48.
137
Clause 49.
138
Clause 56.
139
Clause 57.
140
Clause 59.1.
141
Clause 61.
142
The amount to be retained is not for maintaining the works or putting right damage which occurs in use, those are matters for which the
Contractor is not liable.

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The sum retained under this provision does not belong to the Employer but is held by the Employer
on trust for the Contractor. If the Employer uses for its own purposes any of the funds deducted,
it will amount to a breach of trust for which the remedy is an application to the court of local
jurisdiction.

When the Certificate of Substantial Completion has been issued, half the retention fund is to be
released to the Contractor143 with the second half becoming due for release when the Contract
Administrator’s Certificate of Making Good Defects is issued at the end of the Post-Substantial
Completion Retention Period.144

Retention Bond145

Where a Retention Bond is adopted, its terms must be set out in the Special Conditions and
so long as the Bond is in place the terms regarding a retention fund will be inapplicable.

Interval of Statement of Current Value146

This is the period after deemed or actual acceptance of the Draft Updated Working Schedule 147
during which the Cost Manager is to prepare and issue to the Contract Administrator a statement
of the Current Contract Value. If nothing is stated, the default interval is 10 Business Days.

Within 5 calendar days (excluding Bank Holidays or Public Holidays)148 after the issue of the
statement of Current Contract Value, the Contract Administrator is to serve its Notice of Payment
Due,149 following which the Employer must make payment before the final date for payment.150

Final for Date Payment151

This is the period following the issue of a Notice of Payment Due within which the paying party must
make payment. If none is stated, the default period for payment is 20 Business Days from the date
of the Notice.

143
Clause 59.2.
144
Clause 63.2.
145
Clause 59.4.
146
Clause 61.1.
147
Clause 40.5.
148
See definition of Notice Date in Appendix A
149
Clause 64.1.
150
Clause 66.
151
Clause 66.3.1 and Clause 66.5.1.

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Interest Rate152

This is the rate of interest which is to be added to the principal sum in compensation for the effect
of late payment. The rate identified should be calculated to be compensatory for the loss the payee
is reasonably likely to suffer in the event of non-payment by the due date and should not be punitive,
or by Applicable Law it may be disallowed as a penalty.

The rate is to be identified as either a simple or a compound interest rate together with the rests at
which the interest due is to be calculated. If nothing is stated the default rate of interest is defined
as being five per cent per annum, simple, above the Official Dealing Rate.

Official Dealing Rate153

The Official Dealing Rate should be that set by the governing bank of the region or state in which
the Site is situated. If nothing is stated, the default Official Dealing rate is that set by the Bank of
England at the date that the payment became overdue.

Principal Expert154

This is the named Expert who is to administer the Issue Resolution procedure identified in
Appendix G and to produce any Determination required. Normally, this role will be taken by
one of the listed experts.

However, if none is identified, or the named individual is unable to act, then the Principal Expert
can be agreed by the parties or, in default of such agreement, is to be appointed by the Appointing
Body for the Expert.

List of Experts155

Appendix B makes provision for the appointment of experts to assist the Principal Expert in
contemporaneous Issue Resolution. The Appendix anticipates the appointment of experts in
eleven suggested disciplines, but the expert in Time Management also fills the role of the
Auditor under the Contract and is an essential appointment.

If more experts or more details of the experts are required, they should be set out in the Special
Conditions. Ideally, the proposed experts should be identified at tender stage and agreed to in the
Contractor’s Pricing document.

152
Clause 67.1.
153
Clause 67.1.
154
Clause 73.4.
155
Clause 73.5.

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Appointing Body156

The Contract Appendices make provision for the nomination of an Appointing Body to make the
appointment of the Principal Expert, Adjudicator and Arbitrator. If none is identified, the appointing
body for the Principal Expert is The Academy of Experts,157 and that for the Adjudicator and
Arbitrator is the CIOB.158

Adjudication159

A number of countries, including the UK, have passed legislation making adjudication available to
anyone carrying out work within the description of relevant operations. Section 108 of the Housing
Grants, Construction and Regeneration Act 1996, which applies to England, Wales and Scotland,
makes adjudication available “at any time” to any party to a construction contract having a dispute
or difference.160 Where statutory adjudication is unavailable under the Applicable Law, the parties
may elect to have adjudication as a primary form of dispute resolution under the Contract. In such
cases unless stated otherwise, adjudication will be available to the parties, by default.

Rules of Adjudication161

If the Applicable Law does not require adjudication but nevertheless the parties wish to adopt
adjudication as their primary dispute resolution forum, they may choose the adjudication rules
under which the adjudication will be processed. If adjudication is selected as a dispute resolution
forum, but no rules are identified, by default the rules are to be those of UK Statutory Instrument
2011 No. 2333, The Scheme for Construction Contracts (England and Wales) Regulations 1998
(as amended).

The Adjudicator162

The parties may name the Adjudicator in the Contract. The advantage of naming the same
adjudicator across the suite of contracts for a project should lead to greater consistency between the
various adjudication decisions, regardless of joinder/consolidation of claims. Where none is stated,

156
Clauses 73.4, 74.8 and 74.12.
157
Based at 3 Gray’s Inn Square, London, WC1R 5AH, United Kingdom (http://www.academyofexperts.org).
158
Based at 1, Arlington Square, Downshire Way, Bracknell, Berkshire, RG12 1WA,, United Kingdom (http://www.ciob.org.uk).
159
Clause 74.7.
160
Adjudication was introduced to Northern Ireland through the Construction Contracts (Northern Ireland) Order 1997 and is also available via
legislation in a number of other jurisdictions including the states and territories of Western Australia, Victoria, New South Wales, Queensland
and Northern Territory of Australia, New Zealand, the Isle of Man, Hong Kong, Singapore and Malaysia.
161
Clause 74.7.
162
Clause 74.8. More than one adjudicator may be appointed under these provisions (See Clause 2.5.1).

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the Adjudicator may later be agreed between the parties, or, if none is agreed, will be appointed by
the appointing body for the Adjudicator.163

Final Dispute Resolution Mechanism164

If the Employer wishes to have disputes resolved by the courts of a particular jurisdiction then
relevant jurisdiction must be stated in Appendix B. Otherwise, final dispute resolution will be
by arbitration.

Rules of Arbitration165

Unless Appendix B identifies the courts of a particular jurisdiction as the forum for final dispute
resolution the final dispute resolution forum is arbitration. Parties are at liberty to agree the rules
by which any arbitration is to be conducted, but if none is identified, the default rules are those
current at the Base Date of the London Court of International Arbitration.166

The Arbitrator167

As with adjudication, the advantage of naming the same arbitrator across the suite of project
contracts should lead to greater consistency between arbitral decisions, regardless of
joinder/consolidation of claims. Where none is named, the Arbitrator may be agreed between
the parties, or, if none is agreed, the appointment is to be made by the Appointing Body.168

APPENDIX C

Table 1 of Appendix C contains a description in terms of geometry, precision, content and use of the
design at each Design Stage and Design Level of Development to which the Contract Specification
requires the Contractor to design.

The project-specific data required to be inserted in Appendix C is the Contributor for each Design
Level of Development of each relevant Design Element. Where Table 2 does not reflect the nature
of the work contemplated, it should be deleted and replaced with an appropriate and suitable design
element/design stage/design author responsibility matrix.

163
See “Appendix B, Appointing Body” on page 30.
164
Clause 74.11.
165
Clause 74.11.
166
Based at 70, Fleet Street, London, EC4Y 1EU, United Kingdom (http:// www.Icia.org/).
167
Clause 74.12. More than one arbitrator may be appointed under these provisions (See Clause 2.5.1).
168
See “Appendix B, Appointing Body on page 30.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

The Special Conditions, Contract Specification and the Building Information Modelling Protocol are
to identify any other requirements including any limitation on the Design Stage or Design Level
of Development to which the Contractor is required to contribute and the particular Models
required.169

APPENDIX D

Appendix D contains the performance specification for the Working Schedule. This is the core
document upon which any post-Contract Design Contribution and the production of the Works
on Site are to be managed and controlled.170

The Working Schedule is to contain the data described in Paragraphs D3 and D4 coded according
to the data fields and values identified in Paragraphs D5 to D11. Where the Contractor is to design
the whole of the Works, or is required to make a Design Contribution, the Working Schedule
is to contain details of the Contractor’s design submissions and any submissions for licensing or
permissions identified in Paragraph D4. The Working Schedule submissions are to be managed by
means of a database and, if not managed in a Common Data Environment which tracks such
communications automatically, the Time Manager is to keep a log of submissions in accordance
with paragraph D13. The project-specific data required to be inserted in Appendix D is as follows

the software to be used for the Working Schedule171

the maximum duration of planned Activities for172

• the High Density period between the data date and three months after the
Data Date
• the Medium Density period between 4 months and 9 months after the
Data Date
• the Low Density period more than 9 months after the Data Date

the identity of the Contract Drawings, and/or Contract Specification and/or Contract
Models and/or Contract Bill of Quantities173 identifying the parts to be coded as:

• Sections
• sub-sections
• levels, and
• zones

169
See also “Key Features, Exchange of Information, Building Information Modelling”, on page 83.
170
See also “Key Features, The Dynamic Time Model”, on page 58.
171
Paragraph D1. There are many software products available, of varying degrees of usefulness. Not all offer the facilities needed to manage time on
major projects. The CIOB Guide (See Note 1) provides a listing of the features that are most desirable.
172
Paragraphs D7 and D8.
173
Paragraph D10.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

data entry fields required to be kept in addition to the default standard data fields in
regard to:

• Design Contributors174
• Milestones175 and
• trades.176

APPENDIX E

Appendix E contains the performance specification for the maintenance of Progress Records.
Depending upon the type of work, Progress Records may be made daily or even more frequently.
In rail and similar work, for example, in short possessions, it may be expedient to make records
hourly, or even half-hourly, depending upon the number of Activities and the complexity of their
interrelationships at the time the progress is being recorded.

The Contract requires the Progress Records to be kept on a database, to be published for
acceptance at regular intervals.177 This Appendix contains a default specification for the database
fields which will usually be required and the management of input and output from the database.
The Records are to be fully cross-referenced to the Working Schedule.178 This means that each
data entry must identify the Activity ID and Activity Description on the Working Schedule to which
it relates.

The data required to be inserted in Appendix E is as follows

the types of records to be made and kept other than the specified default types179
the software to be used for the database180
data entry fields required to be kept in addition to the default fields in regard to

• a change of, or unplanned Contractor’s design Activities, not contemplated

in the Working Schedule181
• a change of, or unplanned production Activities, not contemplated in the
Working Schedule182

174
Paragraph D12, a.
175
Paragraph D12, b.
176
Paragraph D12, h.
177
Clause 39.2.
178
Paragraph E3.
179
Paragraph E1.
180
Paragraph E2. Some scheduling software products contain a Progress Records database; others interface with time control software which
contains the necessary features. Otherwise, generally available database software should be sufficiently powerful.
181
Paragraph E5, b.
182
Paragraph E6, b.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

approvals, information, drawings, design model information, details or instructions

• requested183
• supplied184

quality control,185 and

Events.186

A database log of submissions and acceptance or rejections is also to be kept by the Time Manager
and made available to the Contractor, Contract Administrator and Listed Persons 5 Business Days
before each Progress Meeting. 187

APPENDIX F

Appendix F is a table in three parts stating the descriptions of the foreseeable occurrences which
may delay the progress of the works.

The first part, Paragraphs F1 to F15, are those Events identified as being within the control of the
Employer, or under the control of those acting under the Employer’s direction and at the Employer’s
risk as to both time and cost. If any of those Events described in Paragraphs F1 to F15 occur to
delay the progress of the Works the Contractor may become entitled to an extension of time 188
and/or compensation. 189 No change should ever be made to those Paragraphs F1 to F15 as,
depending upon the Applicable Law, if one should occur to delay a Relevant Date for Substantial
Completion and the Employer was not empowered to extend the time for performance, the
Employer Risk Event could be construed as an act of prevention which could remove the
Contractor’s obligation to complete by the Due Dates. The second part contains the descriptions
of those other occurrences, which are not normally within the Employer’s or Contractor’s control,
and are identified as discretionary Events at Paragraphs F16 to F23. By striking out the option which
does not apply, these risks can be indicated to be at the Employer’s or Contractor’s risk, as to time,
and/or cost, as the parties determine according to the commercial desirability of the chosen risk
allocation. If no selection is made of the options in relation to each risk, by default it is at the
Contractor’s risk as to Time and Cost.

183
Paragraph E7, a.
184
Paragraph E7, b.
185
Paragraph E8, a.
186
Paragraph E9, a.
187
Paragraph E10 and Clause 39.5.
188
Clauses 43 and 51.
189
Clauses 43, 44 and 60.1.3.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

The third part of this Appendix provides space for a further 11 project-specific risks to be defined
and allocated to the Employer or Contractor (by striking out the option in relation to each described
risk which does not apply). In order to avoid ambiguity, care must be taken to make sure that each
risk is clearly described and that those risks which are actually or ostensibly within the control of
the Employer, its employees, consultants or directly appointed contractors are not allocated to the
Contractor (see first part, Paragraphs F1 to F15 above).

The Contract also provides that, irrespective of whether it is identified as being the Employer’s or
Contractor’s risk, if any of the occurrences described in Appendix F occurs to delay the progress of
the work for a continuous period of 120 Business Days or more, either party may notify the other
that if the suspension continues for a further five Business Days it intends to terminate the
Contractor’s employment under the Contract.190

APPENDIX G

This contains the procedure for Issue Resolution. It sets out the role, responsibilities, powers and
duties of the Principal Expert, and of other Experts, procedural matters, time scales, and so on.191

CONTRACT MODEL

Where a Model is prepared as a Contract Document, the Drawings are to be generated from the
Model and hence, for the purposes of identifying the consequences of inconsistencies between
them, the Model must rank in priority above any Drawings included in the Contract Documents.192

A Federated Model is a collection of separate Models which can be combined electronically for
the purposes of, for example, conflict checking.

CONTRACT DRAWINGS

The Contract Drawings are to be listed as Contract Documents in the Contract Agreement.
Drawings are defined as two-dimensional plans, sections, elevations, details, sketches, three
dimensional projections that are not extracted from a Model and two-dimensional projections
extracted from a Model which are supplemented with data, information or projections, any of
which are not extracted from a Model.

190
Clause 71.1.2. See also “Key Features, Termination”, on page 85.
191
See “Key Features, Issue and Dispute Resolution”, on page 88.
192
Clause 3.3.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

CONTRACT SPECIFICATION

Unless the Contract Specification is contained in the Contract Bill of Quantities,193 a separate
Contract Specification is required. This will usually contain details of anything specifically required
by the Employer in connection with the procedures and standards of performance required to
carry out the Works. The following is intended as a brief checklist of those project-specific details,
the description of which the Contract Conditions and Appendices require to be set out in the
Specification

The work required to be constructed by the Contractor

The work required to be designed by the Contractor
Temporary Work required
testing required
Completion Testing required before Substantial Completion
Operation manuals required before Substantial Completion
Permanent Plant
Predicted Climatic Conditions
Any Findings expected to be discovered on the Site194
Special standard of the Reference Design
Description and location of the Site
Welfare Facilities to be provided by the Employer
work to be carried out by the Employer or others engaged by the Employer
where the Working Schedule is to not include the Design Execution Plan195
where the Progress Records are not required to include Contractor’s design progress records196
the date of supply of specific information197
whether the Contractor is to design the whole of the Works198
Design Stages to which the Contractor’s Design is to be prepared199
where the Contractor is to design the whole of the Works using BIM200
any labour, goods, materials or plant not required to be provided by the Contractor201
Standard required of the Contractor’s labour, goods, materials and Contractor’s Plant202
where samples are required for approval of work, goods, materials and/or plant203
materials or goods to be supplied by the Employer as Free Issue204

193
See “Contract Bill of Quantities”, on page 37.
194
Appendix F, Paragraph F21.
195
Appendix D, paragraph D4.
196
Appendix E, paragraph E5.
197
Clause 12.4.3.
198
Clause 15.1.
199
Clause 16.2.4.
200
Clause 17.3.
201
Clause 24.3.
202
Clause 24.3.
203
Clause 24.6.
204
Clause 24.8.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

the time for delivery of Free Issue materials and goods205

any limitation on Working Hours206
any limitation on Business Days207
the terms and conditions under which the Employer will provide any area required for Temporary
Buildings208
the terms and conditions under which the Employer will provide any area required for Laydown209
any listed Subcontractors210
Employer’s Prime Cost, Provisional and Contingency Sums required211
Employer’s Time Contingencies required.212

CONTRACT BILL OF QUANTITIES

In general, the Bill of Quantities is not prepared for the purposes of construction, but as a vehicle
for obtaining a contract sum and valuing changes to it. Accordingly, where a Bill of Quantities
is identified as a Contract Document, it will form the basis of the Contractor’s Pricing Document.
Unless the Employer provides an Activity-based Bill of Quantities as a part of the bid documents
it is often preferable for the Bill of Quantities used for bidding to be trade-based and the
subsequent allocation of costs to Activities carried out by the successful Contractor.213

The Bill of Quantities sets out the quantity and quality of the Works required by the Employer and,
unless the description within the Bill of Quantities defines the quality and quantity of work by making
reference to a particular Drawing or Specification clause, it is the sole document upon which the
pricing is based. On the other hand, depending upon the adopted Method of Measurement,
reference to a Model or Drawings may be required in order to give an idea of complexity, which
may not be required to be stated in the chosen Method of Measurement.214

Ultimately, it will be beneficial for quantities to be operationally allocated so that resources can
more easily be allocated to Activities in the Working Schedule.

Where a Model or Federated Model is prepared as a Contract Document, or the Contractor is

required to design the whole of the Works using Building Information Modelling, the quantities
of materials will be extracted from the Model and no separate Bill of Quantities is required.215

205
Clause 24.8.1.
206
Clause 24.17.
207
Clause 24.17.
208
Clause 25.1.
209
Clause 25.5.
210
Clause 29.3.
211
Clause 31.1.1.
212
Clause 45.1.
213
Clause 38.
214
See “Appendix B, Method of Measurement” on page 16.
215
See also, “Contract Appendices, Appendix C”, on page 32, “Contract Model”, on page 35 and “Key Features, Exchange of Information, Building
Information Modelling”, on page 83.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Where a Model does not form a part of the Contract Documents there are five possibilities as to
the role a Bill of Quantities might take; it may be

1. prepared by, or on behalf of the Employer, forming the basis of the Contractor’s lump sum
contract price for the Works
2. the basis of the Contractor’s bid or bid aggregate price where the Contract is based upon
remeasurement
3. a quantified schedule of rates to be used only for the valuation of Variations
4. a partly quantified schedule of rates, or
5. ad hoc quantities to provide for provisional allowances.

1. Prepared by, or on behalf of the Employer, forming the basis of the Contractor’s lump sum price
for the Works

Under this option, the Bill of Quantities will be prepared by the Cost Manager named in the
Contract Agreement and measured in accordance with the Method of Measurement Specified in
Appendix B. The accuracy of the quantities and description is then the Employer’s responsibility.
Whilst it is theoretically possible to shift the risk of liability to the Contractor for the cost of an error
in the Bill of Quantities, no such exclusion or limitation appears in the Contract and if there is a
divergence between the Bill of Quantities and what is actually required to be built (whether
shown on the Contract Drawings or by subsequent amendment to the Contract Drawings) it will
be dealt with as a Variation and will be an Employer’s Time and Cost Risk Event.216

2. Bill of Quantities is the basis of the Contractor’s price for the Works to arrive at a “bid” sum

Under this option, the Bill of Quantities will be prepared by the Cost Manager named in the Contract
Agreement and measured in accordance with the Method of Measurement Specified in Appendix B.
However, this option is used when at the time of pricing the work, the Works have not been fully
designed and the scope cannot be accurately defined. Accordingly, this type of document is
commonly referred to as a bill of approximate quantities.

Before this can be used as the Contractor’s Pricing Document, the design must be refined to a state
in which it is possible to identify the Activities to be carried out in sufficient detail for the costs to be
allocated to the Activities in the High Density217 part of the Working Schedule.

As with option 1, above, with this possibility the risk of the accuracy of the quantities and description
remains with the Employer.218

216
See Appendix F, Paragraphs F1, F4, F6 and F7.
217
See Clause 38.3 and Appendix D, Paragraphs D7 and D8.
218
See Appendix F, Paragraphs F1, F4, F6 and F7.

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3. Bill of Quantities is a quantified schedule of rates and used for the valuation of variations only

This option applies wherever a lump sum contract is required and where the Employer wishes to
control the mechanism for pricing of variations, for example where the Contractor is required to
design the whole of the Works or, where the design is based upon a Model or a Federated Model.219
Under this option the Contractor takes responsibility for whatever quantification it adopts for the
purposes of pricing. However, for the purposes of the Contractor’s Pricing Document, the pricing
must be Activity based and be related to the Working Schedule.220

4. Bill of Quantities is a partly quantified schedule of Works

In this option the Bills of Quantities are prepared by or on behalf of the Employer, but is only a part of
the matrix of documents which the Contractor is required to price to arrive at a contract price. This
document may be a hybrid of options 1–3, above.

5. Ad hoc quantities to provide for provisional allowances

This is a hybrid of item 1. A lump sum contract based on Bill of Quantities is intended to be an
accurate reflection of the scope of works (not approximate or subject to measurement with
variations being dealt with on an add and omit basis). That is to say that there will only be a change
in the cost of work done where either a variation has been instructed or a conflict/error is found.

However it is commonplace in a lump sum contract based on Bill of Quantities, to include ad hoc
provisional quantities to deal with such things as BWIC221 since, (notwithstanding the underlying
presumption of the use of a lump sum Bill of Quantities contract is that the scheme has already
been fully designed), the reality is that the Works are rarely fully designed and where they are
not, the author of the Bill of Quantities has to make assumptions by filling the gap with provisional
quantities. Provisional quantities are also used on an ad hoc basis to deal with unknowns such as
breaking out pre-existing structures and ground-related issues.

CONTRACTOR’S PRICING DOCUMENT

Details of the Contractor’s pricing of the Works are to be kept confidential.222 Where the Contract
Documents include a Bill of Quantities, the priced Bill of Quantities will usually be the basis
of the Contractor’s Pricing Document.223 However, unless the Contractor’s Pricing Document is
Activity based, before the rates and prices can be transferred to the Working Schedule, the allocation
of costs between Activities and Levels of Effort must be agreed with the Cost Manager.224

219
See also, “Contract Appendices, Appendix C”, on page 32, “Contract Model”, on page 35, and “Key Features, Exchange of Information, Building
Information Modelling”, on page 83.
220
See Clause 38 and Appendix D.
221
“Building Work in Connection With...”
222
Clause 18.
223
See Also “Contract Bill of Quantities”, on page 37.
224
Clause 38.10.

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Apart from the usual items for pricing, consideration should be given to how the Contractor should
be required to price the work involved in complying with the Contract requirements for

publication of design and time and cost management information225

preparation of the Working Schedule226
revisions to the Working Schedule227
Progress Records228
updates to the Working Schedule,229 and
Progress Meetings.230

These should not be included as unspecified items in a general Preliminaries or Overheads items,
but should be priced as separate elements of cost. This may become important if they are not
properly performed as without an individual priced element, it will be difficult to identify the value
to be deducted from valuations for non-performance.231

Depending upon the experience of the Contractor involved, at tender or bid stage there may also
be a benefit to be achieved in identifying these items to be covered by a Provisional Sum or, for
matters other than the Progress Meetings,232 a Prime Cost Sum.233 When the value is identified as
a Prime Cost or Provisional Sum, any difference between the Provisional or Prime Cost Sum and
the effect of the actual work and cost required will be an Event.234

If provided, a Provisional Sum, or Prime Cost Sum, should not include the costs of

the correction and resubmission of any rejected or conditionally accepted submission235

impacting the effect of Events236
instructed acceleration,237 and

225
Clause 2.5.8 and see also “Publication” on page 56.
226
Clause 37 and Appendix D.
227
Clause 41 and Appendix D.
228
Clause 39 and Appendix E.
229
Clause 40 and Appendix D.
230
Clause 30.
231
Clause 61.2.1 and 61.2.2.
232
Clause 30.
233
In the past, Contractors have been required to include their costs of complying with management requirements in their general, project-wide
Preliminaries, without identifying the costs individually. In many construction contracts this has proved to be an unsatisfactory arrangement. Contracts
have tended to be awarded to those contractors with lowest Preliminaries and Overhead costs who did not plan to spend too much time or money
managing the Works. The result has generally been manifest in confusion, delay and claims. The purpose of the Provisional or Prime Cost Sum is to
take out of the bidding equation the costs of scheduling and recording the construction process and to make the cost of those elements a common
factor amongst all bidding contractors.
234
Appendix F, Paragraph F2.
235
These are at the Contractor’s risk for which it should allow its own contingencies, if thought necessary.
236
Clauses 43 and 44. This is a cost arising directly as a result of the Event concerned and is properly recoverable under Clause 60.1.4
237
Clause 49.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

instructed recovery.238

Because the software and hardware will have a value to the Contractor beyond any particular
contract, it is recommended that purchase, installation and any training in the use of the specified
software and any necessary computers be a cost to be included in the Contractor’s priced bid in the
item of general Overheads and Profit.

Apart from including the cost of the labour, goods, plant and materials for carrying out the Works,
the Contractor’s Pricing Document should also include separate rates and prices for

trades and ranks239

Activities
Design Elements
Preliminaries
dayworks240
Overheads and Profit
Prime Cost Sums
Provisional Sums, and any
Employer’s Cost Contingency.

The Contractor’s Pricing Document must contain Provisional Sums for work which is defined or
undefined and state whether Preliminaries are included for them. It is important that the rates
for Preliminaries and Overheads and Profit are set out individually and identified in the Working
Schedule as priced Levels of Effort.241 The Contract makes it clear that the Contractor is to
include in its Working Schedule either the time allowance identified in the Specification242 or, if
none is specified, then a fair allowance for such provisional work.243 If no rate is indicated, it is
deemed to be agreed that the Contractor is not entitled to recover Preliminaries and/or Overheads
and Profit as a part of the loss and/or expense incurred as a result of any of the Employer’s Cost
Risk Events.244 Apart from that, without an adequate pricing mechanism, the Contractor may not
be fully compensated in the event of termination for Employer default.245

238
Clauses 48. This is a matter at the Contractor’s risk for which it should allow its own contingencies, if thought necessary.
239
It is important to recognise that there is a difference between the rates for ranks within trades as well as between trades. For example, master
tradesman, apprentice, labourer, etc.
240
A method of valuing work based upon “all-inclusive rates” usually used when the extent of work required cannot be foreseen and the bid rates are
inapplicable. The all Inclusive rates, include not only the prime cost of labour but also an allowance for incidental costs, overheads and profit. The
all-inclusive rates are fixed for the period of the Contract. However, where a fluctuating price contract is used, or where the rates in the contract are
to be index-linked, the all-inclusive rates are adjusted by the appropriate index in accordance with the Special Conditions.
241
Clause 38.4.
242
Clause 45.1.
243
Care should be taken to avoid conflicts when using the UK standard SMM7 as the Method of Measurement. SMM7 only requires an allowance
to be made for “defined” provisional sums. According to the definition contained in SMM7, where they are “undefined” no allowance for time
or preliminaries is to be made against the undefined provisional sum and this is in conflict with Clause 45.2.
244
See Clause 38.5 and Clause 60.1.3.
245
Clause 70.7.1.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

CONTRACTOR’S DESIGN

By definition, Contractor’s Design includes the design or Design Contribution prepared by or under
the direction of the Contractor comprising Drawings and any specifications, calculations, analyses,
or other information relating to the design or Design Contribution, or a Model prepared by or under
the direction of the Contractor and any drawings specifications, calculations, analyses, or other
information extracted from the Model, or any other design or Design Contribution for which
the Contractor is required to assume responsibility.

DEVELOPMENT SCHEDULE

The Development schedule is defined as a critical path network schedule, prepared by or on behalf
of the Employer which identifies the planned process of project procurement from inception to
completion and which functions as the Employer’s time and cost model for the project as a whole.

In those projects containing a single contract for the Works to be carried out and managed by
a single Contractor, in which procurement does not start until after the Contract is signed, the
Development Schedule will have no part to play in the construction Contract. However, where
pre-contract procurement is required of specialist components, enabling works are necessary, work
is to be carried out by multiple prime contractors, or where the Special Conditions are written to
enable the Works to be carried out by the procurement method known as Management Contracting,
then the Development Schedule identifying the intended relationship between the various
procurement contracts may be a necessary Contract Document.

The particular version of the Development Schedule required as a Contract Document must be
identified in the Contract Agreement.

OTHER DOCUMENTS FORMING A PART OF THE CONTRACT

Other documents which are to be included in the Contract Documents will depend upon the special
circumstances of the particular project. Other documents should be listed as Contract Documents
in the Contract Agreement.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Roles and Responsibilities

EMPLOYER

The Employer is the party identified in the Contract Agreement as being responsible for paying for
the Works.246

CONTRACTOR

The Contractor is the party identified in the Contract Agreement as being responsible for carrying
out the Works and, so far as concerns Contract, the term Contractor includes Subcontractors and
suppliers employed by or working under the direction of the Contractor.

SUBCONTRACTORS

Subject to the Contract Administrator’s approval, Subcontractors may be employed to carry out any
Activity, or part of the Works on behalf of the Contractor. Where it is stated in the Specification, the
Contract Administrator’s prior authority to subcontracting any specified part is not required.247
The CIOB Time and Cost Management Subcontract , 2015 Edition, should be used as, or
incorporated in, the subcontract conditions of contract.248 This provide consistency with and
transparency between the terms of the Contract and those of the Subcontract. The Subcontract
deals with the following standard matters

Defined Terms249
Interpretation250
The Subcontract251
Obligations of the Parties252
Commencement and Completion253
Authorised Representatives and Site Supervision254
Communications255

246
In other standard forms this party has also been called the “Government” “Owner”, “Client”, “Authority”, “Purchaser”, “Principal”, etc.
247
Clauses 29.2 and 29.3.
248
Clause 29.4.
249
Clause 1.
250
Clause 2.
251
Clause 3.
252
Clause 4.
253
Clause 5.
254
Clause 6.
255
Clause 7.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Subcontractor Collateral Warranties256

Security for Subcontractor’s Performance257
Insurances258
Information259
Subcontractor’s Requests for Supply260
Subcontractor’s Submissions261
Intellectual Property262
Design Execution Plan263
Subcontractor’s Design Contribution264
Building Information Modelling265
Confidentiality266
Findings267
Unforeseeable Conditions268
Temporary and Ancillary Work and Contractor’s Facilities269
Health, Safety and Welfare270
Subcontractor’s Methods271
Labour, Plant and Materials272
Temporary Buildings and Laydown273
Quality Control274
Completion Testing275
Access276
Permits and Licences277

256
Clause 8.
257
Clause 9.
258
Clause 10.
259
Clause 11.
260
Clause 12.
261
Clause 13.
262
Clause 14.
263
Clause 15.
264
Clause 16.
265
Clause 17.
266
Clause 18.
267
Clause 19.
268
Clause 20.
269
Clause 21.
270
Clause 22.
271
Clause 23.
272
Clause 24.
273
Clause 25.
274
Clause 26.
275
Clause 27.
276
Clause 28.
277
Clause 29.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Assignment and Sub-subcontracting278

Site Meetings279
Contractor’s Instructions280
Variations281
Valuation of Variations282
Early Warning283
Risk Management284
Failure to Provide Risk Management Information285
Subcontractor’s Scheduling Contribution286
Incorporation of Subcontractor’s Pricing Document287
Progress Records288
Updated Scheduling Contribution289
Revised Scheduling Contribution290
Calculation of Effect of Event on Time291
Calculation of Effect of Event on Cost292
Float and Time Contingencies293
Subcontractor’s Improvement of Progress294
Contractor’s Improvement of Progress295
Instructed Recovery296
Instructed Acceleration297
Failure to Comply With an Instruction to Recover or Accelerate298
Extension of Time299

278
Clause 30.
279
Clause 31.
280
Clause 32.
281
Clause 33.
282
Clause 34.
283
Clause 35.
284
Clause 36.
285
Clause 37.
286
Clause 38.
287
Clause 39.
288
Clause 40.
289
Clause 41.
290
Clause 42.
291
Clause 43.
292
Clause 44.
293
Clause 45.
294
Clause 46.
295
Clause 47.
296
Clause 48.
297
Clause 49.
298
Clause 50.
299
Clause 51.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Concurrency300
Partial Possession and Use of the Subcontract Works301
Handover302
Making Good Defects303
Failure to Achieve Handover304
Liquidated Delay Damages305
Limit of Liability306
Retention Fund307
Working Schedule and Planning Method Statement308
Predicted Subcontract Cost309
Current Subcontract Value310
Penultimate Subcontract Value311
Final Subcontract Value312
Contractor’s Notice of Payment Due313
Subcontractor’s Notice of Payment Due314
Payment315
Interest on Unpaid Amounts316
Termination Without Fault317
Termination for Subcontractor Insolvency or Default318
Termination for Contractor Insolvency or Default319
Termination for Impossibility, Illegality or Prolonged Suspension320
Consequences of Termination321

300
Clause 52.
301
Clause 53.
302
Clause 54.
303
Clause 55.
304
Clause 56.
305
Clause 57.
306
Clause 58.
307
Clause 59.
308
Clause 60.
309
Clause 61.
310
Clause 62.
311
Clause 63.
312
Clause 64.
313
Clause 65.
314
Clause 66.
315
Clause 67.
316
Clause 68.
317
Clause 69.
318
Clause 70.
319
Clause 71.
320
Clause 72.
321
Clause 73.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Issue Resolution322
Dispute Resolution.323

The Standard form of Time and Cost Management Subcontract also contains the following Contract
Appendices

APPENDIX 1 Defined Terms

APPENDIX 2 Contract Particulars
APPENDIX 3 Building Information Modelling
APPENDIX 4 Working Schedule
APPENDIX 5 Progress Records
APPENDIX 6 Events
APPENDIX 7 Issue Resolution.

There are no special conditions for nominated Subcontractors in this form. If the Contract
Administrator wishes any part of the Works to be carried out by a specific Subcontractor, the
particulars must be clearly defined and made a term of the Contract by being setting out in
the Special Conditions.324

CONSULTANTS

The CIOB Consultancy Appointment is written to promote consistency with and transparency
between the terms of the appointment of the Consultants and those of the Contractor working
under the Contract and those of the Subcontractor working under the terms of the Subcontract.
The Consultancy Appointment deals with the following standard matters

Defined Terms325
Interpretation326
The Appointment327
Obligations of the Parties328
Commencement and Completion329
Authorised Representatives330
Communications331

322
Clause 74.
323
Clause 75.
324
See “Special Conditions”, on page 12.
325
Clause 1.
326
Clause 2.
327
Clause 3.
328
Clause 4.
329
Clause 5.
330
Clause 6.
331
Clause 7.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Collateral warranties332
Insurances333
Security for Consultant’s Performance334
Information335
Submissions336
Intellectual Property337
Design Execution Plan338
Design Contribution339
Building Information Modelling340
Continuing Design Services341
Confidentiality342
Personnel343
Access and Accommodation344
Permits and Licences345
Assignment, Subcontracting and Novation346
Progress Meetings347
Employer’s Instructions348
Suspension of Services349
Variations350
Early Warnings351
Risk Management352
Failure to Provide Risk Management Information353

332
Clause 8.
333
Clause 9.
334
Clause 10.
335
Clause 11.
336
Clause 12.
337
Clause 13.
338
Clause 14.
339
Clause 15.
340
Clause 16.
341
Clause 17.
342
Clause 18.
343
Clause 19.
344
Clause 20.
345
Clause 21.
346
Clause 22.
347
Clause 23.
348
Clause 24.
349
Clause 25.
350
Clause 26.
351
Clause 27.
352
Clause 28.
353
Clause 29.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Scheduling Contribution354
Incorporation of Schedules 8 and 9355
Progress of Design Services Records356
Updated Scheduling Contribution357
Revised Scheduling Contribution358
Calculation of Effect of Interference on Time359
Calculation of Effect of Interference on Cost360
Float and Time Contingencies361
Consultant’s Improvement of Progress362
Employer’s Improvement of Progress363
Instructed Recovery364
Instructed Acceleration365
Failure to Comply with an Instruction to Recover or Accelerate366
Extension of Time367
Progress of Non-Design Services Records368
Failure to Complete369
Liquidated Delay Damages370
Limit of Liability371
Development Schedule372
Predicted Cost of Services373
Current Value of Services374
Final Value of Services375

354
Clause 30.
355
Clause 31.
356
Clause 32.
357
Clause 33.
358
Clause 34.
359
Clause 35.
360
Clause 36.
361
Clause 37.
362
Clause 38.
363
Clause 39.
364
Clause 40.
365
Clause 41.
366
Clause 42.
367
Clause 43.
368
Clause 44.
369
Clause 45.
370
Clause 46.
371
Clause 47.
372
Clause 48.
373
Clause 49.
374
Clause 50.
375
Clause 51.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Cost Manager’s Notice of Payment Due376

Consultant’s Notice of Payment Due377
Payment378
Interest379
Termination Without Fault380
Termination for Consultant Insolvency or Default381
Termination for Employer Insolvency or Default382
Termination for Impossibility, Illegality, or Prolonged Suspension383
Consequences of Termination384
Issue Resolution385
Dispute Resolution.386

The Standard form of Time and Cost Management Consultancy Appointment also contains the following
Contract Schedules

Schedule 1 – Additional Defined Terms

Schedule 2 – Appointment Particulars
Schedule 3 – Building Information Modelling
Schedule 4 – Scheduling Contribution and Development Schedule
Schedule 5 – Progress of Design Services Records
Schedule 6 – Time and/or Cost Risks
Schedule 7 – Issue Resolution
Schedule 8 – Services
Schedule 9 – Fees and Expenses

376
Clause 52.
377
Clause 53.
378
Clause 54.
379
Clause 55.
380
Clause 56.
381
Clause 57.
382
Clause 58.
383
Clause 59.
384
Clause 60.
385
Clause 61.
386
Clause 62.

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CONTRACT ADMINISTRATOR387

The Contract Administrator may be any experienced professional associated with the industry in
which the Works are carried out, or may be a professional Contract Administrator. The Contract
Administrator’s role is to make sure, in so far as it can, that the machinery of the Contract runs
smoothly and operates as it should.

Unless an issue is referred for Issue Resolution,388 the Contract Administrator is the sole arbiter
of the parties’ rights under the Contract and as such, notwithstanding that it is also employed and
paid by the Employer as its consultant, it is nonetheless required to act independently and fairly389
and if it fails to do so, the consequences will be at the risk of the Employer.390

For a full listing of the Contract Administrator’s duties under the Contract, reference should be
made to Schedule 8, the Model Schedule of Services for the Contract Administrator’s Appointment.

TIME MANAGER

The Time Manager is the Contract Administrator’s adviser on the time-related matters related to
the project. Notwithstanding that it is also employed and paid by the Employer as its consultant,
is nonetheless required to act independently and fairly391 and if it fails to do so, the consequences
will be at the risk of the Employer.392

The Time Manager must be kept informed of the state of the Works and has a vital role in the
management of risk, mitigation, recovery of culpable delay and acceleration. Accordingly, the
party who undertakes that role must always be a Listed Person.393

The Time Manager is responsible for ensuring that the Contractor’s time management processes
are satisfactory and can be relied upon for the purposes of decision making by the Contract
Administrator and the other Listed Persons. It is the Time Manager’s job to check, on a regular
basis, whatever is produced by the Contractor by way of time-related information and to accept it,
if satisfactory, or reject it, or accept it subject to conditions and to maintain a log of submissions.394

387
In other standard forms this party has also been called the “Employer’s Agent”, “Employer’s Representative”, “Contract Manager”, “Project
Manager,” “Supervising Officer”, “Superintendent”, “Superintending Officer”, “ Architect”, “Engineer”.
388
Clause 73 provides for either party faced with what it considers to be an unfair or unreasonable act, omission or decision to refer the issue to
an independent expert.
389
Clause 4.2.
390
Appendix F, Paragraph F15.
391
Clause 4.2.
392
Appendix F, Paragraph F15.
393
Appendix B and see “Roles and Responsibilities, Listed Persons”, on page 53.
394
Clause 37.11, Appendix D, Paragraph D13, Clause 39.5 and Appendix E, Paragraph E10.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

For a full listing of the Time Manager’s duties under the Contract, reference should be made
to Schedule 8, the Model Schedule of Services for the Time Manager’s Appointment.

COST MANAGER395

The Cost Manager is appointed by the Employer to advise the Employer, Contract Administrator and
Listed Persons on the content of the Contractor’s Pricing Document and the valuation of Activities in
the Working Schedule,396 the measurement and valuation of Variations,397 the Predicted out-turn cost
of the Works398 and for payment purposes the Current Contract Value of the Works, from time to
time.399 Notwithstanding that it is employed and paid by the Employer, it is nonetheless required to
act independently and fairly400 and, if it fails to do so, the consequences will be at the risk of the
Employer.401

Because, during the course of the Works, the Cost Manager must be kept informed of the state
of the Works and have a part to play in the management of risk, the person taking on that role
should always be included as a Listed Person.402

AUDITOR

The Auditor is that person named in Appendix B as the Time Management Expert or, subject to any
reasonable objection by the Employer, such other person as the Time Manager may appoint as the
Auditor, from time to time.

The role of the Auditor is to examine before work commences and the intervals stated in
Appendix B403 the state of the Contractor’s

Planning Method Statement

Working Schedule, and
Progress Records.

395
In other contracts the role of the Employer-appointed quantity surveyor (sometimes referred to as the “PQS”) is synonymous but not identical
to the role of the Cost Manager. The Cost Manager’s duties are more extensive than those normally undertaken by an Employer-appointed
quantity surveyor.
396
Clause 38.
397
Clause 33.
398
Clause 60.
399
Clause 61.
400
Clause 4.2.
401
Appendix F, Paragraph F15.
402
See “Roles and Responsibilities, Listed Persons”, on page 53.
403
Clauses 37.5, 37.6, 39.2 and 41.1.

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The purpose of the audit is to ensure that the Contractor’s submittals comply with the CIOB
Guide404 and the specific requirements of the Contract and that they form a suitable basis for
the management of the Employer’s and Contractor’s time risks from time to time.

The issues which the Auditor is normally to consider are set out in the CIOB Guide405 any other
considerations should be set out in the Contract Specification and be included in Schedule 8,
the Model Schedule of Services for the appointment of the Auditor.

LISTED PERSONS

At Appendix B, the user is to identify those consultants having a continuing part to play during the
course of the Works, either in the provision of design or other information, inspection, supervision
or administration.406

Typically, these will include the Architect and Engineers, but will also include Clerks of Works
or other superintendents of work and other professionals who are to be involved.

The Listed Persons must always include the Time Manager and Cost Manager and, if there is an
Employer’s Building Information Model, then they should also include the design coordination
manager.

404
See Note 1.
405
See Note 1.
406
See “Appendix B, Listed Persons”, on page 15.

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Key Features

INFORMATION TRANSFER

Generally, the Contract requires all communications to be in writing.407 Although the Contract does
not forbid correspondence from being reduced to hard copy and delivered by post408 or by hand,409
electronic data transfer by email,410 an agreed File Transfer Protocol411 or by being kept in a Common
Data Environment412 is the preferred method of communication.

In order to promote transparency and collaboration between the Contractor, Subcontractors, the
Consultants and the Employer, particular document types are identified as being required to be
“distributed”413 or “published”.414

DISTRIBUTION

Distribution is the term used to describe the issue of a document in Portable Document Format.415
Where a document is required to be distributed, it is to be issued to the other party, or if issued by
another person, to both parties and to the

Contract Administrator
Time Manager, and
Cost Manager

Because it must be issued in Portable Document Format, it must be issued electronically, by means
of email or by an agreed File Transfer Protocol.

407
Clause 7.1.
408
Clause 7.5.
409
Clause 7.6.
410
Clause 7.2.
411
Clause 7.3.
412
Clause 7.4.
413
Clause 2.5.7.
414
Clause 2.5.8.
415
Commonly referred to as a PDF document.

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Those Documents required by the Contract to be distributed are

By the Contractor

• general submissions416
• Design Execution Plan417
• statement of working methods418
• Draft Planning Method Statement419
• Draft Updated Planning Method Statement420
• Draft Revised Planning Method Statement421
• Draft Impacted Method Statement422
• specified details of any Event impacted423
• notice of loss and/or expense or delay to a Due Date424
• access codes and passwords to published materials425

By the Contract Administrator

• decision on extension of time426

• Certificate of Partial Possession427
• Certificate of Substantial Completion428
• Certificate of Failure to Achieve Substantial Completion429
• Notice of Payment Due releasing half of Retention Fund430
• Notice of Payment Due releasing balance of Retention Fund431

By the Auditor

• Report on schedule quality assurance.432

416
Clause 13.1.
417
Clause 15.1.
418
Clause 23.2.
419
Clause 37.2.
420
Clause 40.3.
421
Clause 41.3.
422
Clause 43.5.
423
Clause 43.6.
424
Clause 44.1.2.
425
Clause 72.1.
426
Clause 51.2.
427
Clause 53.2.2.
428
Clause 54.4.
429
Clause 56.1.
430
Clause 59.2.
431
Clause 59.3.
432
Clause 42.4.

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PUBLICATION

The Contract requires complete transparency in the submission of information required for the
collaboration between the Contractor, its Subcontractors, the Consultants and the Employer in the
management of risk. This is achieved by requiring such documents to be issued electronically in
native file format by the process referred to as publication.433 Where a document is required to be
published, it is to be issued to the other party, or if issued by another person, to both parties and
to the

Contract Administrator
Time Manager, and
Cost Manager.

Because it must be issued in native file format, it must be issued electronically, by means of an
agreed File Transfer Protocol, by virtue of its management in a Common Data Environment to
which the necessary persons have access or by email. However, for the majority of documents
required to be published email is may not be a satisfactory method of transference simply because
of the possible size of the files concerned.

Those Documents required by the Contract to be published are

By the Contractor

• the Contractor’s Design434

• Model and/or Federated Model435
• Working Schedule including Contractor’s Design436
• Working Schedule for the Works437
• database of Progress Records438
• Draft Updated Working Schedule439
• Draft Revised Working Schedule440
• corrected Working Schedule441
• Draft Impacted Working Schedule442
• Contractor’s Design Contribution443

433
Clause 2.5.8. This is a file transmitted electronically in editable file format, in the software in which it was created.
434
Clause 16.8.
435
Clause 17.3.2.3.
436
Clause 37.5.
437
Clause 37.6.
438
Clause 39.2.
439
Clause 40.1.
440
Clause 41.1.
441
Clause 42.5.
442
Clause 43.6.
443
Clause 72.1.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

By the Contract Administrator

• database of records of general submissions444

• database of records of design submissions445

By the Time Manager

• database of records of Working Schedule submissions446

• database of records of Progress Records submissions.447

If the Contractor refuses or neglects to properly plan and schedule the Works, the Employer
and its management team cannot plan and schedule the Works in its place. However, under of
the Contract, to fail to produce a contractually compliant submission, or to fail to disclose the
Progress Records of the resources and productivity achieved may lead to a series of unwelcome
consequences:

1. there will be foreseeable difficulties for the Contractor in receiving payment for work
done as the Working Schedule and Progress Records are at the root of the interim
payment mechanism448 and, without them, the Contract Administrator will necessarily
be hampered in formulating promptly an accurate Notice of Payment Due,449 or gauging
the accuracy of the Contractor’s Notice of Payment Due450

2. because the Working Schedule and Progress Records are at the root of the time and
cost adjustment mechanism, in the event of excusable and/or compensable delay there
will be foreseeable difficulties for the Contractor in obtaining an accurate extension of
time451 and/or time-related compensation452

3. the Contractor is not entitled to be paid for the provision of management information
which it has either not competently prepared, or not published as required453

4. the Contractor may not start the Works until compliant management information is
published454
444
Clause 13.9.
445
Clause 16.9.2
446
Clause 37.11.
447
Clause 39.5.
448
Clauses 38, 60, 61, 64 and 66. See also the model time-line on page 94 illustrating their relationship.
449
Clause 64.
450
Clause 65.
451
Clauses 43 and 51.
452
Clauses 38, 44 and 60.1.3. Under the Contract the Contractor is not permitted to choose for itself how it demonstrates entitlement to more time
or money. Clauses 43.8 and 44.3 make it plain that in the event that the Contractor does not follow the procedures in the Contract the Contractor’s
entitlement is to be calculated after the relevant Substantial Completion Date according to the materials then available to the Time Manager and
Cost Manager.
453
Clauses 61.2.1 and 61.2.2.
454
Clauses 23.7, 37.5, 37.6 and 37.10.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

5. when the work is underway, the Contract Administrator may instruct the Contractor to
cease work (at the Contractor’s risk as to time and cost) until compliant management
information is published455

6. the Employer may employ others (at the Contractor’s expense) to investigate, record the
resources, productivity and sequence of work achieved and to provide any schedule of
anything carried out upon which the Contractor has not published contractually compliant
information,456 and

7. the Contractor’s employment may be terminated for default.457

Notice of the Employer’s intention to employ others to make investigations, produce schedules
and/or make Progress Records of work carried out is not strictly necessary: the Employer’s right to
do so arises on default continuing for five Business Days after the Contract Administrator’s notice
of failure to provide a compliant submission.458 However, giving notice of the employment of others
for such investigation, record keeping and scheduling, permits the matter to be monitored by
both parties for the avoidance of future disputes about the facts.

Flow Chart No. 1, “Failure to Publish”,459 illustrates the various procedures of submission, decision
and redress and its relationship to Flow Chart No. 11, “Termination”.

The expense incurred by the Employer in carrying out the investigations, record keeping and
scheduling arising out of the Contractor’s default may be deducted in a Notice of Payment Due,460
withheld in a Notice of Payment Due,461 or may be recoverable as a debt.462

THE DYNAMIC TIME MODEL

Working Schedule is the name given to the Contractor’s critical path network schedule which
identifies the Contractor’s intentions for the future conduct of the Works and which, together with
the Planning Method Statement (containing the assumptions and calculations on which the Working
Schedule is based)463 function together as the Contractor’s time and cost model for the Works.464

Unlike the requirements of other standard forms of contract, in the Contract the Working Schedule
is required

455
Clauses 23.7 and 37.10.
456
Clause 36.2.
457
Clauses 36.1 and 69.3.2.1.
458
Clause 36.2.
459
See page 95
460
Clause 66.6.1.
461
Clause 66.6.2.
462
Clause 66.6.3.
463
Clause 37.2.
464
Clause 37. See also “Appendix D”, on page 33.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

to be described in terms of content calculations and assumptions in a Planning

Method Statement465
to be priced in conformity with the Contractor’s Pricing Document466
to be prepared to a controlled standard467
to contain the Contractor’s short-term resource logic468
to be revised at regular intervals469
to be updated with progress achieved in accordance with quality controlled Progress
Records470 to be used to calculate

• interim valuations for payment471

• predicted out-turn cost472
• an extension of time,473 and
• time-related compensation474

and to be published only electronically and transparently in native file format. There is no provision
in the Contract for the Working Schedule to be printed by the Contractor or distributed by paper copy
alone.475

Depending upon whether the Contractor is to design the whole of the Works, the first submission
for acceptance is to be made either 20 Business Days after the Start Date, or 20 Business Days
before the Access Date. For convenience, the model time-line illustrated on page 82 shows all
periods in Business Days and the first submission both 20 Days after the Start Date and 20
Days before the Access Date, although necessarily where the Contractor designs the whole of the
Works a considerably longer period will be usually required between the two dates.

If the Contractor is required to design the whole of the Works the first submission is required to
embody the Contractor’s Design Execution Plan,476 the first 60 Business Days of design procedures
(at High Density) and the Contractor’s intentions for the remainder of the design and the construction
of the Works (at Medium and Low Density).477

465
Clause 37.2 and Appendix D, Paragraphs D2 and D3.
466
Clause 38.
467
Clauses 37.1 and 42 and Appendix D.
468
Clause 37.7.
469
Clauses 41.1 and 41.2.
470
Clauses 39 and 40.
471
Clause 61.
472
Clause 60.
473
Clauses 43 and 51.
474
Clauses 43 and 44.
475
Whilst the practice of accompanying a copy of the electronic file in native format with a print to a PDF document may appear to be superficially
helpful, it should be recognised that whatever is printed to a PDF document can never be any more than that which the author wishes to convey
in the PDF. It may be neither what the recipient needs to see, nor wants to see. Transparency is best achieved by access to the Working Schedule
in native file format from which the recipient can make its own investigation and print what it needs to see.
476
Clause 15.
477
Clauses 37.5 and 37.7 and Appendix D, Paragraphs D4 to D8.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Otherwise, the first submission is to be made 20 Business Days before the Access Date and to
demonstrate the first 60 Business Days of construction (at High Density) and the Contractor’s
intentions for the remainder of the Works (at Medium and Low Density).478

Flow Chart No. 2, “Working Schedule”,479 illustrates the procedure of preparation, incorporation of
the Contractor’s Pricing Document,480 submission and decision and the relationship of this to Flow
Charts No. 1, “Failure to Publish” and No. 12, “Issue Resolution”.

SCHEDULE UPDATE

The Working Schedule is to be updated at regular intervals from the Progress Records,481 to
demonstrate the effect of progress achieved on both time and cost.

Through the incorporation of the Contractor’s Pricing Document in the Working Schedule,482 the
Update of the Working Schedule is also the basis of valuation of the Predicted Cost of the
Works,483 the Current Contract Value of work done484 and stimulates the issue of the Contract
Administrator’s Notice of Payment Due.485

If the Contractor’s update demonstrates that as a result of slow progress, any Due Date is unlikely to
be met, it is to revise its intentions for the future conduct of the Works to overcome the predicted
delay.486

Because the updated part of the Schedule is necessarily in High Density, containing both the
resources used and productivity actually achieved, it can also be used to validate the planned
duration and resources of similar future activities.

Flow Chart No. 4, “Update of Working Schedule”,487 illustrates the procedure of preparation,
submission and decision on the updated Working Schedule and Planning Method Statement and
the relationship of this Flow Chart to Flow Charts No. 1, “Failure to Publish”, No. 3, “Progress
Records” and No. 12, “Issue Resolution”.

478
Clauses 37.6 and 37.7 and Appendix D, Paragraphs D3 to D8.
479
See page 96.
480
Clause 38.
481
See “Key Features, Progress Records”, on page 66.
482
Clause 38.
483
Clauses 38 and 60.
484
Clauses 38 and 61.
485
Clause 64. See also the model time-line illustrating the relationship of the update to submission of Progress Records, Progress Meetings
and valuation and payment on page 94.
486
Clause 40.4.
487
See page 98.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

REVISION

The Working Schedule is not a fixed target and is not only expected to change, but is required to
be revised in both content and detail to reflect changes in the Contractors intended method of
working,488 any improvements of progress against that planned,489 instructed recovery490 or
acceleration491 the quality of information currently available from time to time, and the necessary
shift in the Contractor’s intentions from Activity-based logic to resource- and location-based logic.492

If the Contractor’s revision demonstrates that as a result of its change in intentions, any Due Date
is unlikely to be met, it is to further revise its intentions for the future conduct of the Works to
overcome the predicted delay.493

Flow Chart No. 5, “Revision of Working Schedule”,494 illustrates the procedure of preparation,
submission and decision on any revision of the Working Schedule and the relationship of this Flow
Chart to Flow Charts No. 1, “Failure to Publish” and No. 12, “Issue Resolution”.

SCHEDULE QUALITY CONTROL

The Working Schedule is to be prepared to a rigorous standard required by the Conditions, 495
the CIOB Guide and the default specification contained in Appendix D.496 It is to be in different
densities, according to the degree of detailed information about design, resources and
productivity that is available from time to time497 and is to be checked for compliance by the
Time Manager 498 and by an independent quality assurance Auditor.499

488
Clause 23.
489
Clauses 46 and 47.
490
Clause 48.
491
Clause 49.
492
Clause 41.1. See also “Appendix B, Status Interval for revision of the Working Schedule”, on page 22 and see the model time-line illustrating
the relationship of the impacted Working Schedule to the updated and/or revised Working Schedule, Progress Meetings and valuation and
payment on page 94.
493
Clause 41.4.
494
See page 99.
495
See Clauses 37, 38, 40, 41 and 42.
496
Clause 37.1 and Appendix D.
497
Clause 37.7 and Paragraph D8 of Appendix D defines the special attributes of the High Density part of the Working Schedule. Paragraph D7
of Appendix D provides for a limitation to be specified on the maximum duration of any Activity within the three specified densities. For further
information on schedule density, see the CIOB Guide (Note 1) at Paragraph 3.7.11.
498
Clauses 37.8, 40.5 and 41.5.
499
Clause 42.

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SCHEDULE SOFTWARE

The software to be used for the Working Schedule is to be specified in Appendix D.500 Depending
upon its degree of complexity and ability to handle a quantity of data, the software adopted for a
Building Information Model501 may also be capable of producing the time management data,
but that will not always be the case.

Accordingly the Contract is written in such a way that the time management functions can be
performed irrespective of whether a Model is adopted for design management or, if it is so adopted,
irrespective of whether the Model is developed to an appropriate Level of Development, and/or the
software used is capable of being used for time management.502

SCHEDULE CONTENT

Paragraph D3 of Appendix D sets out a description of the work content to be included in the Working
Schedule and Planning Method Statement. Where the Contractor is to have a design role during the
course of the Works, Paragraph D4 describes the design Activities to be included, together with
periods for consideration, correction/amendment and resubmission and, where licensing and
approvals (including those of Statutory Authorities) are required to be included for Activities related
to preparation of submission, submission, consideration and approval.

MILESTONES, ACTIVITIES AND LEVELS OF EFFORT

The Contractor is required to prepare the Working Schedule by reference to three different types of
content: Milestones, Activities and Levels of Effort. All are to bear a unique ID and Activity
Description,503 but otherwise have radically different characters.

A Milestone has neither resources nor time. It signals a point in time on which something in a Key
Date description is required to occur, is planned to occur or does occur such as the date of creation
of a QA/QC record (e.g. material approval, permissions to proceed, ceiling closure approval, etc.),
the start or finish of a process, or a state of completion. Milestones must be included for those
described504 and such other occurrences as may prove useful in the management of the Works
such as the initiation date of an Event, for example, or the date upon which an instruction for a
Variation is issued.

500
Appendix D, Paragraph D1.
501
See “Contract Model”, on page 35.
502
See also “Key Features, Exchange of Information, Building Information Modelling”, on page 83.
503
Appendix D, Paragraph D12.
504
Appendix D, Paragraph D3.

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An Activity has both duration and resources. An Activity identifies the duration over which a task is
planned to be performed, or is actually performed. The planned duration is to be identified in three
densities.505 At Low and Medium Density, the duration and resources must usually be estimated.
At High Density, the planned duration is required to be calculated by reference to the expected
productivity of the resources which are planned to be available in order to execute the task,506 and
when completed is required to show the resources which were actually used to execute the task
during its actual duration.507

A Level of Effort has duration but no resources attached to it. This is the type of indicator to be used
to identify the duration over which Preliminaries are planned to be expended or Overheads and Profit
are planned to be recovered.508 If the periods change over which the Preliminaries and Overheads
and Profit are planned to be recovered, the amount to be recovered will change pro-rata the duration
and, by comparison of the figures before and after the impact, the calculation is made of the
prolongation costs likely to be, or actually incurred as a result of the change in any Due Date.
If Level of Effort durations are not priced in the Working Schedule, it is deemed to be agreed that
the Contractor is not entitled to recover delay-related costs for the effect of Events.509

TIME CONTINGENCIES AND FLOAT

The Contract Conditions distinguish between different types of float, between float and time
contingencies,510 and between time contingencies owned by the Employer and those owned
by the Contractor.511

Float is not a time contingency. Neither party owns any float in the Working Schedule.512

The Contractor is encouraged to identify in its Working Schedule any time contingency it requires to
absorb any risks which it can foresee as being likely to occur to cause slippage in the progress of the
Works.513 Any such contingencies are owned by the Contractor and are to be used only for
mitigating the effect of the Contractor’s risks unless, by a separate agreement, their benefit is
transferred to the Employer.

Where Contractor’s Time Contingency periods are on the Critical Path to a Relevant Substantial
Completion Date, and hence included in the Contract duration, the effect of those time
contingencies in the priced Working Schedule is to require the Contractor to pre-price (by virtue

505
Appendix D, Paragraph D7.
506
Clause 37.7 and Appendix D, Paragraph D8.
507
Clause 40.1.
508
Clause 38.4.
509
Clause 38.5.
510
Clause 45.5.
511
Clauses 45.1 and 45.4.
512
Clause 45.5.
513
Clause 45.4 and Appendix D, Paragraph D3 (d).

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of its tender or bid) the prolongation costs it is likely to suffer as a result of those contingency
periods later being absorbed by Contractor’s risks.

If the Contractor does not use its critical contingencies then, all other things being equal, there will
be a reduction in the duration of the work, a reduction in the Contractor’s costs for the work and an
earlier Substantial Completion Date, to the Contractor’s benefit. There is no provision in this contract
by which the Employer can refuse to accept the completed Works, merely because they are
completed earlier than the Substantial Completion Date.

The Employer is also encouraged to identify in the Specification whatever time contingencies it
requires in order to cover the time effect of those risks listed in Appendix F which, at the time of
tender/bid, it can foresee might be needed.514 If the Specification requires the Contractor to include
in the Contractor’s Pricing Document any Prime Cost, Provisional or Contingency Sum in the
Contractor’s Pricing Document, but the Specification does not identify a commensurate time
contingency, then the Contractor is required to include what it considers to be a reasonable
Employer’s Time Contingency for the expenditure of those items.515

The Employer’s Time Contingencies are owned by the Employer and cannot be used by the
Contractor unless, by a separate agreement, their benefit is transferred to the Contractor.
If by improving its progress the Contractor is able to reduce the time needed for future work, instead
of leaving that additional time as float it may, if it wishes, secure that additional time as its own time
contingency to be used in managing future risks.516

Similarly, if by the omission of any Activities, or obligations, the Employer is able to reduce the time
needed for future work, instead of leaving that additional time as float it may, if it wishes, secure that
additional time as its own time contingency to be used as it decides in managing future risks.517

Where Employer’s Time Contingency periods are on the Critical Path to a Relevant Substantial
Completion Date, and hence included in the Contract duration, the effect of those time
contingencies in the priced Working Schedule is to require the Contractor to pre-price (through
its tender or bid) the prolongation costs it is likely to suffer as a result of those contingency
periods later being absorbed by Events. If the Employer does not use its critical contingencies
then, all other things being equal, there will be a reduction in the duration of the Works, an earlier
Substantial Completion Date and hence a reduction in the Contract price, to the Employer’s benefit.

In principle, to the extent of the duration of such Employer’s Time Contingencies, in relation to
the occurrence of an Event which would otherwise delay achievement of a Relevant Substantial
Completion Date, their effect is:

514
Clause 45.1 and see “Contract Specification”, on page 36.
515
Clause 45.2 and see also “Contract Specification”, on page 36; “Bill of Quantities”, on page 37; and “Contractor’s Pricing Document”, on page 39.
516
Clause 47.1.
517
Clause 31.1.2.

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where caused by an Employers’ Time Risk Event, to avoid the obligation to award an
extension of time, and/or
where caused by an Employers’ Cost Risk Event to avoid the obligation to pay
prolongation costs.

If the aggregate delay that is actually suffered to a Relevant Substantial Completion Date is less
than the aggregate of Employer’s Time Contingencies on the Critical Path to the Relevant
Substantial Completion Date, the effect of the omission of the unused contingency period518 will
be to

bring the Due Date forward to an earlier date,519 and

reduce the Predicted Cost of the Works.520

Where the ultimate aggregate duration of delay to a Relevant Substantial Completion Date is
greater than the aggregate Employer’s Time Contingency period included on the Critical Path to
the Relevant Substantial Completion Date, then, to the extent that aggregate delay exceeds the
aggregate Employer’s Time Contingency, the Contractor will become entitled to an award of an
extension of time,521 and where the delay is caused by an Employer’s Cost Risk Event, payment
of disruption and/or prolongation costs.522

However, merely because all the Employer’s and Contractor’s contingency periods are absorbed
does not mean that delay to completion is rendered thereby inevitable, since the Contract
Conditions also contain powers to instruct both acceleration and recovery, where practically it can
be achieved.523

WORK BREAKDOWN STRUCTURE AND ACTIVITY CODES

The purpose of Work breakdown structure is to provide a logical process against which the Working
Schedule can be designed and filtered for examination and analysis in use. Paragraph D7 of
Appendix D provides for seven levels of content.

Paragraph D11 sets out standard data fields and values for the coding of particular Activities,
Milestones and Levels of Effort. The purpose of this is two-fold: firstly, it provides the minimum
necessary categorisation of data to permit filtering, retrieval and sorting of data for analysis
and management reporting during the course of the Works. Secondly, it provides a structure
for benchmarking and comparative analysis of data between projects.

518
Clause 31.1.2.
519
Clause 49.3.
520
Clause 60.1.3.
521
Clause 51.
522
Clauses 44 and 60.1.3.
523
See “Key Features, Improved Progress, Acceleration and Recovery”, on page 67.

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Where a specific project requires data to be coded in addition to the standard data fields, Paragraph
D10 of Appendix D provides for project-specific coding in addition to the standard data fields.

PROGRESS RECORDS

Although the Working Schedule cannot be accurately updated without Progress Records524 and
they are thus the essential informational resource for managing time525 and essential for
determining the extent to which an Event has caused delay or disruption,526 the Contract is unique
amongst standard form contracts in requiring the Contractor to maintain any Progress Records other
than those in support of a claim.

Apart from reliable progress data being vital to the calculation of the cause and effect of disruption
and lost productivity and to the production of the updated Working Schedule, it is exceptionally
important as a management tool: a departure from the planned productivity of a given resource
cannot be identified without records of the productivity actually achieved.

The Progress Records are required to be maintained on a database for ease of validation, sorting,
filtering and reporting. The Contract contains provisions for the submission of the database for
acceptance shortly after commencement of work and at regular intervals thereafter.527 The Working
Schedule cannot be updated without publication of the Progress Records and hence the efficacy
of the Progress Meetings and the payment provisions are also dependent upon them. The model
time-line on page 94 shows the relationship of the progress records to other submission, the
Progress Meetings and valuation and payment.

The comparison of resources and productivity planned with that achieved is particularly important
where a particular resource is planned to be engaged over long periods in different parts of the Site,
for example for such things as earth moving, piling, pipework, track laying and so on, or where a
number of repetitive cycles are to be performed. Without good records of productivity achieved to
compare with what was planned, the progress of the Works can easily get out of control before it
is possible to identify the consequential delay to progress in an update of the Working Schedule.

If adequate attention is paid to recording the way work is scheduled and performed, the later
retrieval of such data can also lead to increasingly improved accuracy of forward planning and quality
control in project development.

524
Clause 40.1.
525
See CIOB Guide, Section 4.3.
526
Society of Construction Law “Delay and Disruption Protocol”, October 2002.
527
See “Appendix B, Status Interval for publication of Progress Records”, on page 21.

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Flow Chart No. 3, “Progress Records”,528 illustrates the procedure of preparation, submission and
decision on the updated Working Schedule and Planning Method Statement and the relationship
of this Flow Chart to Flow Charts No. 1, “Failure to Publish”, and No. 12, “Issue Resolution”.

IMPROVED PROGRESS, ACCELERATION AND RECOVERY

IMPROVED PROGRESS

The Contractor is encouraged to make improvements in performance wherever it can. However,

unlike other standard forms, the Contract permits the Contractor to keep any float created by
its efforts and preserve for its own benefit of any time it has saved as a Contractor’s
Time Contingency.529

Similarly, if by the omission or reduction of obligations, the Employer is able to improve progress it
can preserve for itself the benefit of any float it has created by such omissions and save it as an
Employer’s Time Contingency.530

INSTRUCTED RECOVERY

If the Contractor should find itself slipping against the progress planned to be achieved, it must take
action to recover the lost time.531

The Time Manager is not obliged to accept any Draft Working Schedule which indicates that a Due
Date is unlikely to be achieved except when the cause of such failure is the occurrence of an
Event. 532 In other words, the Contractor must plan to overcome its own culpable slippage and, if it
does not do so, the Contract Conditions contain the powers necessary for the Contract
Administrator to control the way the slippage is to be recovered.533

Once the Time Manager is satisfied that, irrespective of the cost of compliance, such instructions
can be complied with, it should advise the Contract Administrator, who within 5 Business Days is
then to issue the appropriate instructions for recovery at no cost to the Employer.534

528
See page 97.
529
Clause 46.1.
530
Clause 47.1.
531
Clause 40.4.
532
Clause 40.4.
533
Clause 48.
534
Clause 48.2.

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The instructions issued under these recovery provisions are for the purpose of recovery of lost time
only and may not be used to achieve an earlier completion date.535

INSTRUCTED ACCELERATION

If the Employer wishes to achieve a Due Date earlier than that identified in the Contract
Documents536 or, if, as a result of delay to progress caused by an Event, the Contractor shows in
its Working Schedule that a Due Date is likely to be missed, and the Employer wishes either to
achieve the Due Date, or reduce the period of likely delay to the Due Date,537 then the Time
Manager is to consult with the Contractor to see what instructions can reasonably be issued to
achieve the Employer’s wishes.

The Contractor is entitled to be paid for its work in preparing proposals for acceleration and for
achieving any such acceleration.538 Once the Time Manager is satisfied that it is practically
possible to comply with the instructions, it is to inform the Contract Administrator, who within 5
Business Days of receipt of the Time Manager’s advice, is to issue the acceleration
instructions to the Contractor as a Variation.539

REDRESS FOR FAILURE TO COMPLY WITH AN INSTRUCTION TO RECOVER

OR ACCELERATE

Unlike other standard forms in which the Contractor may ultimately ignore instructions to recover
lost time or fail to achieve paid-for acceleration with impunity, the Contract contains four significant
sanctions for a failure to carry out the instructions which, following proper investigation, the Time
Manager has ascertained can reasonably be complied with:

1. it can arrange for work which the Contractor has failed to carry out according to
instructions to be carried out by others,540 and recover any expenditure and/or loss from
the Contractor.541 This will enable the Employer to increase resources of its own accord

2. where a Relevant Substantial Completion Date is missed as a result of the Contractor

failing to take prescribed action for recovery of culpable delay, the Employer will be
entitled to the specified Liquidated Damages542

535
Clause 48.3.
536
Clause 49.3.
537
Clause 49.1.
538
Clauses 49.4 and 60.1.4.
539
Clause 49.1.
540
Clause 31.5.
541
Clause 31.5.3.
542
Clause 57.

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3. where as a result of a delayed completion caused by the Contractor’s failure to recover

culpable delay the Employer suffers expenditure and/or loss over and above the
rate of Liquidated Delay Damages for delayed completion, or the Contractor fails
to accelerate as instructed, the actual losses suffered by the Employer can be recovered
up to the Limit of Liability, if any, identified in Appendix B,543 and

4. the Employer may terminate the Contractor’s employment for default.544

EXTENSION OF TIME, COMPENSATION AND CONCURRENCY

EXTENSION OF TIME

There are no provisions in the Contract for a subjective assessment by the Contract Administrator
of a “fair and reasonable” extension of time or an “equitable adjustment”. The Contractor is
only entitled to the time it can prove by calculation that it should actually need. Since the Working
Schedule is a fully linked critical path network complying with the standards of the CIOB Guide,
it operates as a predictive tool, which is to be used contemporaneously to calculate the
consequences of any Event impacted upon it.545

The Working Schedule is to be impacted by the effect of Events that can be foreseen,546 and/or
have occurred547 to demonstrate their effect on Due Dates and other Milestones. When a Variation
is instructed for work to be carried out in the future, or any other Event is predicted to be likely to
occur, the Working Schedule is to be impacted to reflect the likely effect of the Event.548 Ultimately,
unless the predicted time effect of the Event has been pre-agreed,549 the actual progress and
resources required by the Variation, or the ultimate effect of any other Event will be recorded in the
update of the Working Schedule to reflect the actual time effect of the Event on the progress of the
Works and on the Due Dates.550

Unless the Contractor fails to produce a contractually compliant Working Schedule, and Progress
Records, the latest accepted updated Working Schedule551 is the base-line against which the effect
of Events is measured for the purposes of calculating the effect of an Event on the timing of the

543
Clause 50.2.
544
Clause 69.3.2.1.
545
Clause 43.
546
Clause 35 and 43.1.
547
Clause 43.1.
548
Clauses 43 and 44.
549
Clause 51.3.
550
See Clauses 36.2, 44.3 and 51.5.
551
This should include the date when Variations are carried out and in relation to work executed, any changes in quantity or provisional quantities
(and re-measurement in a re-measurement contract) and the resources used.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Works,552 the award of an appropriate extension of time553 and payment including compensation for
disruption and/or prolongation.554

Calculation of the effect of Events is based upon what is commonly referred to as “Time Impact”555
or “modelled/additive/multiple base”556 analysis. This method uses the latest updated and accepted
Working Schedule as a baseline against which to measure the effect of an Event by

adding the relevant non-working period of a suspension or a Fragnet of changed work to

the Working Schedule557
recalculating the Critical Path by rescheduling,558 and
calculating the effect of the Fragnet or non-working period by reference to the difference
between the Working Schedule before the Event occurred and that after the Event
is added.559

Where a number of Events occur in a single reporting period, the method is to be carried out using
what is colloquially referred to as the “Windows”560 or “modelled/additive/multiple base/stepped
insertion/fixed periods”561 process.

The Calculation is to be prepared and published as a Draft Impacted Working Schedule and Draft
together with a Draft Impacted Planning Method Statement562 describing the Event and its
calculation no less than 5 Business Days before the next Progress Meeting.563 If a Time Risk Event
occurs within 5 Business Days of the next Progress Meeting, or for any other reason the Contractor
is not able to prepare the required calculation before the next Progress Meeting, it is to be provided
in advance of the subsequent Progress Meeting.564

On the basis of the calculation contained in the Draft Impacted Working Schedule, the Time Manager
is to check the Contractor’s calculations and make sure that:

552
Clause 43. See also the model time-line illustrating the relationship of the impacted Working Schedule to the updated and/or revised Working
Schedule, Progress Meetings and valuation and payment on page 94.
553
Clause 51.
554
Clauses 44 and 60.1.3. See also “Key Features, Extensions of Time, Compensation and Concurrency”, on page 69.
555
See also Society of Construction Law, “Delay and Disruption Protocol” (October 2002) and Keith Pickavance, “Delay and Disruption in
Construction Contracts”, (4th Ed. 2010) at Paragraphs 15-144 to 15-158.
556
American Association of Cost Engineers, International, Recommended Practice No. 29 R-03 (2009).
557
Clause 43.4.1.
558
Clause 43.4.2.
559
Clause 43.4.3.
560
Clause 38.5.2. See also Mirant Asia-Pacific Construction (Hong Kong) Ltd v Ove Arup And Partners International Ltd [2007] EWHC 918 (TCC),
at Paragraphs 132 to 133 and Keith Pickavance, Delay and Disruption in Construction Contracts, (4th Ed. 2010) at Paragraphs 15-159 to 15-170.
561
American Association of Cost Engineers, International, Recommended Practice No. 29 R-03 (2009).
562
Clause 43.5.
563
Clause 43.6.
564
Clause 43.7.1.

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the Event described has in fact occurred565

the Event is an Employer’s Time Risk Event566
any Fragnet is either an accurate record of the Activities and the resources, durations and
sequence arising as a result of the Event, or is a reasonable estimate of the quantity of
work, Activities and the resources, productivity, durations and sequence likely to
flow directly from the Event567
any non-working period is either an accurate record of the duration of any period of
suspension which occurred as a result of the Event, or is a reasonable estimate of
the duration of suspension likely to flow directly from the Event,568 and
the impact of the Event calculated is likely to prevent the Works or any part thereof from
being completed by a Relevant Date for Completion after a Relevant Completion Date has
passed.569

Provided those five conditions are satisfied then within the 10 Business Days following the
Contractor’s distribution and publication of the required information, the Time Manager is to consult
with the Contractor and ascertain what acceleration instructions can reasonably be given to
overcome, or avoid in whole or in part, the calculated likely effect of the Event570 and advise the
Contract Administrator accordingly.571

If there are accelerative measures that can be taken, then the Contract Administrator should confer
with the Employer and make sure that the Employer would prefer to pay the costs of the
acceleration rather than suffer a delayed completion and, within 5 Business Days of receiving
the Project Time Manager’s advice, the Contract Administrator must then

award an extension of time by fixing a new Relevant Substantial Completion Date

commensurate with the impact calculated by the Draft Impacted Working Schedule,572 or
issue acceleration instructions for a reduction of time required for any part of the work573
and, commensurate with the predicted impact of the Event in the light of such
instructions, either
• confirm the Relevant Substantial Completion Date,574 or
• award an extension of time by fixing a new Relevant Substantial Completion
Date.575

565
Clause 51.1.1.1.
566
Clause 51.1.1.2 and Appendix F.
567
Clause 51.1.2.
568
Clause 51.1.3.
569
Clause 51.1.4.
570
Clauses 47 and 49 and see also “Key Features, Improved Progress, Acceleration and Recovery, Instructed Acceleration”, on page 68.
571
Clause 51.1.6.
572
Clause 51.1.5.
573
Clause 51.1.6.
574
Clause 51.2.2.1.
575
Clause 51.2.2.2.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Where an extension of time is awarded on the basis of assumed data, the Contract provides for any
extension of time granted to be recalculated on the basis of the facts, when they become
available.576

If the Contractor fails to comply with the Contract Conditions with the result that there is no
Working Schedule and/or Event Analysis that can be used contemporaneously for Time Impact
Analysis, then the Contract provides that any entitlement the Contractor may have can only be
demonstrated using the method known as the “Collapsed As-Built”577 or “modelled/ subtractive/
single simulation”578 analysis after the Works or relevant Section has been completed using

any Employer’s records and schedules prepared during the course of the Works following
the Contractor’s default579 or, if none were made
such other records and schedules as in its absolute discretion the Time Manager adopts
for the purpose of calculating the Contractor’s entitlement.580

Flow Chart No. 7, “Extension of Time and Compensation”,581 illustrates the procedure of submittal
and operation of the procedure for identifying the impact on time and cost of an Event and the
relationship of this Flow Chart to Flow Charts No. 9, “Valuation”.

COMPENSATION FOR DELAY AND/OR DISRUPTION

Where a Draft Impacted Working Schedule indicates that any part of the Works or the productivity
of any resources has been adversely affected by an Employers Cost Risk Event, the Contractor
may suffer loss and/or expense for which it is entitled to be compensated.582

Accordingly, where the Contractor is likely to suffer, is suffering, or has suffered loss and/or
expense, the Contractor is required to notify the Contract Administrator, no later than 5 Business
Days before the next Progress Meeting.583 The Contractor must provide with the notice such
information as is then available concerning the Employer’s Cost Risk Event and its
consequences and if any of the stipulated information to be provided584 is not then available or for
any other reason the Contractor is not able to prepare the required calculation before the next
Progress Meeting, it is to be provided in advance of the subsequent Progress Meeting.585

576
Clause 51.3.
577
See also Society of Construction Law, “Delay and Disruption Protocol” (October 2002) and Keith Pickavance, “Delay and Disruption in
Construction Contracts”, (4th Ed. 2010) at Paragraphs 15-112 to 15-143.
578
American Association of Cost Engineers, International, Recommended Practice No. 29 R-03 (2009).
579
Clause 51.5.1.
580
Clause 51.5.2.
581
See page 101
582
Clause 44.1.1.
583
Clause 44.1.
584
Clause 44.2.
585
Clause 44.4.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

Although notice is required as soon as there is a likelihood of loss and/or expense occurring, the
Contractor is only permitted to recover the loss and/or expense that it has actually incurred.586 The
purpose of this provision is not to penalise the Employer, but to compensate the Contractor for
loss and/or expense actually suffered.

Where the information provided to the Cost Manager demonstrates that the Contractor has suffered
loss and/or expense as a result of an Employer’s Cost Risk Event, the Predicted Cost of the Works is
to be adjusted by:

any loss and/or expense incurred by the Contractor which has been caused by the
Employer’s Cost Risk Event,587
any expense incurred by the Contractor arising from the calculation of the effect
of the Event,588

and, as a result, those costs are then automatically included in the next valuation589 and paid for
under the next Notice of Payment Due.590 It is thus in the Contractor’s interests to keep the
necessary records and to produce them as soon as it is able to do so.

Flow Chart No. 7, “Extension of Time and compensation”,591 illustrates the procedure of submission
and operation of the procedure for identifying the impact on time and cost of an Event and the
relationship of this Flow Chart to Flow Charts No. 9, “Valuation”.

COMPENSATION FOR PROLONGATION

The Contractor is required to identify its Preliminaries592 and Overheads and Profit593 by Levels of
Effort logically linked to the Activities to which they relate.

Provided that the information required has been incorporated in the Working Schedule,594
prolongation costs can be estimated during the course of the Works based upon the extent by which
any Levels of Effort are adjusted from time to time by the impact of an Employer’s Cost Risk
Events on the Working Schedule.595

586
Clauses 44.2.4 and 60.1.3.
587
Clause 60.1.3.
588
Clause 60.1.4.
589
Clauses 60.1 and 61.2.
590
Clause 64.
591
See page 101.
592
Clause 38.4.1.
593
Clause 38.4.2.
594
Clause 38.5.
595
Clauses 44.1 and 60.1.3.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

However, because the Contractor is only entitled to be compensated for loss and/or expense that it
has actually suffered,596 it cannot be compensated for prolongation costs until after the relevant
Due Date has passed and then, only if the prolongation which has occurred arose as a result of an
Employer’s Cost Risk Event.

Flow Chart No. 7, “Extension of Time and Compensation”,597 illustrates the procedure of submission
and operation of the procedure for identifying the impact on time and cost of an Event and the
relationship of this Flow Chart to Flow Charts No. 9, “Valuation”.

CONCURRENCY

Concurrency is defined as occurring in two cases. The first is when a delay to progress is caused to
a single Activity by two or more causative events, at least one of which is the Contractor’s liability
and at least one of which is an Event.598 In the second, concurrency is defined as occurring when
a delay to progress is caused to a single Activity by one or more causative events at the risk of
the Contractor and, over the same period of delay to progress, in whole or in part, a delay to
progress is caused to another Activity by one or more Events.599

When, at the date upon which the delay to progress occurs, the Event is an Employer’s Time and
Cost Risk Event and the delayed Activity is, or both delayed Activities are, on a Critical Path to a
Relevant Date for Substantial Completion, the predicted delay to the Relevant Date for Substantial
Completion so caused shall be deemed to be one for which the Contractor is entitled to an extension
of time, but not compensation.600

Where any part of a delay to progress is caused by an Employer’s Cost Risk Event so that only
entitlement to compensation is a relevant consideration, it is important that the costs which
the Contractor wishes to recover are caused by and are traceable back to the effect of that
Employer’s Cost Risk Event.601 Otherwise, the Contractor is not entitled to compensation.602

Flow Chart No. 8, “Concurrency”,603 illustrates the decision making process regarding the
Contractor’s entitlement in circumstance of concurrency and the relationship of this Flow Chart
to Flow Chart No. 9, “Valuation”.

596
Clauses 44.2.4 and 60.1.3.
597
See page 101.
598
Clause 52.1.1.
599
Clause 52.1.2.
600
Clause 52.2.
601
Clause 52.3.
602
Clause 52.4.
603
See page 103.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

VALUATION

Apart from adjustments of Prime Cost, Provisional and Contingency sums604 and fluctuations in
prices,605 if applicable, there are four possible changes in cost that remain to be ascertained during
the course of the Works

1. The direct cost of Variations606

2. The loss and or expense arising out of delay to progress of the Works caused by an
Employer’s time risk Event607
3. The extended Preliminaries and/or Overheads and Profit arising out of delay to a Due
Date caused by an Employer’s time risk Event608
4. The cost of calculating the impact of an Event.609

VALUATION OF VARIATIONS.

Variations are closely defined.610 Whenever a Variation is instructed or circumstances occur which
amount to a Variation, the Contractor is always entitled to have the direct effect of the Variation
valued and added or omitted from the Contract Sum.611 That is so irrespective of whether the
Variation causes delay or disruption, the cost effect of which also remains to be ascertained under
items 2 and 3 above.

For the direct costs

1. omissions are always valued at the rates and prices in the Contractor’s Pricing
Document612

2. additional or substituted work is to be valued primarily by reference to the Contract rates

and prices.

where is to be executed under similar conditions and is similar in character and quantity
to that priced in the Contractor’s Pricing Document, the Variation is to be valued pro
rata the rates and prices in the Contractor’s Pricing Document.613 This also applies to work

604
Clause 60.1.5.
605
Clause 60.1.7.
606
Clause 33.
607
Clauses 38 and 44 and Appendix F.
608
Clauses 38 and 44 and Appendix F.
609
Clause 60.1.4.
610
Appendix A.
611
Clause 33.1.5.
612
Clause 33.1.3.
613
Clause 33.1.1.1.

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the subject of approximate quantities where the work carried out is plus or minus 10%
of the stated quantity614

where any part is materially different from that priced, the Contractor is entitled to a fair
allowance for the difference in description or quantity.615 This also applies to work the
subject of approximate quantities where the work carried out differs in quantity from the
described work by more than 10%616

3. where the value of any work or liabilities cannot be ascertained by application of those
rules then the Contractor is entitled to a fair valuation.617

VALUATION OF DELAY TO PROGRESS

Delay to progress can be manifest in a suspension of work or in a loss of productivity that is, work
taking longer to complete than it should. Where work is suspended for any reason, the Activities
concerned must be identified in a published Draft Impacted Working Schedule618 supported by
distributed back-up information.619

Delay to progress caused by lost productivity is not always so easy to demonstrate. However
provided that the High Density part of the Working Schedule has been competently calculated620
and the calculations supported in a Planning Method Statement621 and comparable records of
undisturbed work622 then the evidence of the lost productivity, if any, will be manifest in the
difference between the planned productivity in a given Activity and that achieved as evidenced
by the Progress Records.623

Whenever the Contractor considers that loss and/or expense is likely to be, is being or has been
caused by the suspension or lost productivity it must distribute a notice to that effect624 together
with the necessary supporting information.625

614
Clause 33.1.2.1.
615
Clause 33.1.1.2.
616
Clause 33.1.2.2.
617
Clause 33.1.4.
618
Clause 43.3.
619
Clauses 43.5 and 43.6.
620
Clause 37.7.
621
Clauses 37.2.
622
Clause 40.1.
623
Clause 39.
624
Clause 44.1.1.
625
Clause 44.2.

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VALUATION OF EXTENDED PRELIMINARIES AND/OR OVERHEADS AND PROFIT

Provided that the Contractor has indicated with Levels of Effort the Preliminaries and Overheads
and Profit it needs to recover,626 any change in those arising from the impact of an Event will
automatically be calculated by the Impacted Working Schedule that contains the Event.627

VALUATION OF THE COST OF CALCULATING THE EFFECT OF AN EVENT

The cost of implementing the procedures in Clauses 43 and 44 flows from the Initiation Date of
the Event until the procedures are completed. Depending upon the nature of the Event, these costs
may reasonably comprise some management time, the time of one or more schedulers and, where
the Event is an Employer’s Cost Risk Event, the time of one or more Contractor’s quantity surveyors.

FORECASTING THE FINANCIAL EFFECT OF CHANGE ON THE PREDICTED COST

The Activities in the Working Schedule are to be attributed with values in accordance with the
Contractor’s Pricing Document628 and when a Variation is instructed for work to be carried out in
the future, or any other Employer’s Cost Risk Event is predicted to be likely to occur, the Working
Schedule is to be impacted to reflect the likely effect of the instruction, or Employer’s Cost Risk
Event. 629 Thus, when the Working schedule is updated with progress achieved,630 unless the
predicted indirect cost effect of the Variation or other Event has been pre-agreed,631 it will also reflect
in the relevant Levels of Effort the consequential effect of Variations, changes in provisional
quantities (and changes of quantity in a re-measurement contract) and other Employer’s Cost Risk
Events on the progress of the Works and on the Due Dates.632

Accordingly the updated Working Schedule provide the calculation of the interim value of the work
completed for the purposes of payment633 and the ultimate projected out-turn cost of the Works.634

Flow Chart No. 9, “Valuation”,635 illustrates the process of valuation in relation to the updated
Working Schedule and the relationship of this Flow Chart to Flow Charts No. 2, “Working Schedule”
and No. 12, “Issue Resolution”.

626
Clause 38.4.
627
Clause 43.4.
628
Clause 38. See also “Contractor’s Pricing Document”, on page 39.
629
Clauses 43 and 44.
630
Clause 40. Competent valuation requires Variations and any changes in quantity or provisional quantities (and re-measurement in a remeasurement
contract) to be timeously quantified and resourced together with the date when such events are actually progressed. See Clauses 33 and 44.
631
Clause 52.2.
632
See Clauses 33.5, 43, 44 and 51.3.
633
Clauses 28, 33 and 54.
634
Clause 53.
635
See page 103.

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PAYMENT

The primary mechanism for payment under the Contract is the Contract Administrator’s Notice of
Payment Due,636 which is dependent upon the Cost Manager establishing the Current Contract Value
of the Works,637 which is dependent upon the Cost Manager establishing the out-turn Predicted
Cost of the Works,638 which, in turn is dependent upon the Contractor’s updated Working Schedule639
and the Progress Records.640

The Contract provides for the Contractor to pay the Employer as well as for the Employer to pay the
Contractor.641

If the primary mechanism for payment breaks down, the Contractor may formulate its own Notice
of Payment Due, which then takes effect on its date of issue.642

There is a defined time scale for the issue of the Notice of Payment Due and the ultimate payment
to the Contractor. Appendix B provides for the periods to be identified but, if none is stated, the
default final date for payment is 20 Business days from the Notice Date.

If either party has a legitimate cause for paying less than stated in the Notice of Payment Due, it
may pay less provided that the calculation of and reason for the deductions is set out in a notice to
the payer issued no less than 5 Business Days before the final date for payment.643

Unless Applicable law requires otherwise, interest at the rate stipulated in Appendix B, is chargeable
on any late payment.644

Where payment in full is not made by the due date, in default of such notice, where the Employer
is to pay the Contractor, the Contractor may suspend all or any of its obligations until payment is
made, at the time and cost risk of the Employer.645

Flow Chart No. 10, “Payment”,646 illustrates the process of payment, deductions and the parties
redress for non-payment and late-payment in relation valuation and the relationship of this
Flow Chart to Flow Charts No. 9, “Valuation” and No. 12, “Issue Resolution”.

636
Clause 64.
637
Clause 61.
638
Clause 60.
639
Clause 40.
640
Clause 39.
641
Clauses 66.3 and 66.5.
642
Clauses 65 and 66.2.
643
Clauses 66.3.2 and 66.5.2.
644
Clause 67.1.
645
Clause 66.4.
646
See page 104.

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EXCHANGE OF INFORMATION

EARLY WARNING AND RISK MANAGEMENT

This contract provides the parties with all the tools necessary to reach a contemporaneous binding
determination on the Contractor’s entitlement to additional time. It therefore avoids the likelihood
(which is faced in many other types of standard forms) of claims for additional time and/or money
being left to the end, resulting in confusion of responsibility during the course of the Works and
costs wasted in retrospective litigation, arbitration and adjudication to determine liability for the
ultimate unmanaged loss.

If anyone becomes aware of anything likely to interfere with the progress of the works or its cost,
they are to issue a notice to that effect to the Contractor, following which the Contractor is to issue
an Early Warning,647 following which the Contract Administrator is to arrange for a risk management
meeting to identify how the risk should be dealt with, to update the Risk Register and to issue
appropriate instructions for avoidance or mitigation of its effects.648

Flow Chart No. 6, “Early Warning”,649 illustrates the procedure of submission and operation of an
Early Warning and the relationship of this Flow Chart to Flow Charts No. 5, “Revision of Working
Schedule”, and No. 7, “Extension of Time and Compensation”.

PRE-EXISTING CONDITIONS

The status of any information provided by the Employer in relation to the accuracy of any
investigation report, data, maps, Drawings, historical records or any other information of any kind
provided by the Employer concerning existing structures, the physical ground conditions, subsurface
conditions, geology, below ground services and/or any other significant features (such as a sculpture
in the grounds of an existing building) must be stated in the Contract Specification. Unless advised
to the contrary, the Contractor may rely upon whatever information is provided.650 However, unlike
other standard forms, under the Contract the parties have the option of carving out elements of
responsibility for various risks.

One possibility is that the Employer might assign a survey report to the Contractor. Assignment
(or otherwise giving contractors the ability to rely on surveys) could result in lower bid returns.

Another possibility is that the Employer might obtain a reliance letter for the Contractor from the
producer of any survey report.

Ultimately it is for the Employer to decide how to deal with its risks. It can

647
Clause 34.
648
Clause 36.
649
See page 100.
650
Clause 11.2.

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provide no site data at all and let bidders price for the cost of carrying out their own
surveys651
arrange for letters of reliance to be given to the Contractor and exclude the provisions
of Clause 11.2, or
leave Clause 11.2 in place, but be aware that to the extent that the Contractor claims
time and/or costs for the consequences of deficiencies in it, the Employer may similarly
have to claim against the producer of the site data.

If any limit is to be placed upon the reliability of any Site data provided, or the Contractor is not to
rely upon anything provided, but to make its own investigations, this must be made clear in
the Contract Specification.652

Suspension of any part or the whole of the Works as a result of the discovery of Unforeseeable
Conditions may be identified as being entirely at the Contractor’s Risk, entirely at the Employer’s
Risk, or the liability for time and cost can be allocated separately to one or the other.653 Unless a
distribution of risk is identified in Appendix F, the risk of both time and cost caused by suspension
as a result of the discovery of Unforeseeable Conditions is at the Employer’s Risk.654

INFORMATION, DRAWINGS, DETAILS, AND ANYTHING THE EMPLOYER

IS TO PROVIDE

Where the Specification stipulates a date by which the Employer warrants that it will supply any
information, Drawings, details, or anything which the Employer is to provide to the Contractor, the
supply is to be identified by a Key Date in the Working Schedule. 655

Where no fixed date is stipulated, the Contractor is to indicate the logical date for receipt in its
Working Schedule656 and make its request for any acceptance, or approval of a submission,657 the
supply of anything the Employer is to provide,658 instructions and other information,659 no later than
10 Business Days before it would like to receive any response.660

651
If data exists it should be disclosed. However, if the Contractor is not permitted to rely on it, it should be disclosed with a warning to the effect
that the data is provided for information only and no representation is made by the Employer as to its accuracy, completeness or sufficiency. The
contractor should also be advised to conduct its own investigations and warned that a failure to do so will not constitute a clash, conflict, discrepancy,
omission, error, inconsistency and/or ambiguity in information provided by the Employer, (correction of errors in Contract Documents), or Clause 19.3
(investigation and disposal of Findings).
652
Clause 11.2.
653
Appendix F, Paragraph F20.
654
Appendix F. See asterisk footnote to Paragraph F20.
655
See “Contract Specification”, on page 36, and Appendix D, Paragraph D3 j. and k.
656
Appendix D3, Paragraph D3 k.
657
Clause 12.1.1.
658
Clause 12.1.2.
659
This obligation does not extend to instructions for a Variation other than instructions to which Clause 3.7 (correction of errors in Contract Documents),

or Clause 19.3 (investigation and disposal of Findings) apply.

660
Clause 12.3.

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Where any such request is made, the Contract Administrator is to respond no later than the later
of four possibilities.661 In effect, this means that irrespective of any date by which the Contractor
requests that anything is to be supplied or the Employer warrants that anything will be supplied, if
the currently accepted Working Schedule shows that it is not needed until a later date, it need not
be supplied until that later date.

Only if it is not supplied by that later date is there a delay in supply for which the Employer is at risk
as to the time and cost consequences.662

EMPLOYER’S REFERENCE DESIGN

Where the Employer produces a Reference Design for the purposes of describing its requirements,
it must be made clear in Appendix B663 that it has been prepared

1. For information purposes only and cannot be relied upon for any purpose
2. to a defined Design Stage or Design Level of Development, or
3. to a particular status defined in the Special Conditions.

The use to which a design completed to a particular Design Stage or Design Level of Development
is indicated in Table 1 of Appendix C by reference to geometry and content.

Where the Reference Design has been prepared to a defined Design Stage or Design Level of
Development referred to in Table 1 of Appendix C, that stage must also be inserted in Appendix B,
otherwise option 2 becomes inapplicable.

Unless the status is made clear by deletion and the insertion of appropriate data, the Reference
Design will be deemed to be supplied for information purposes only and may not be relied upon
by the Contractor for any purpose.

CONTRACTOR’S DESIGN

The Contract provides for the possibility of the Contractor designing the whole of the Works,664
making a Design Contribution to a design prepared by or under the direction of the Employer,665
or having no design responsibilities at all.666 Any value engineering, or suggestion by the Contractor
as to how the Works may be made more cost effective, is deemed to be a Contractor’s Design
Contribution.667

661
Clause 12.4.
662
Appendix F ,Paragraph F12.
663
Clause 11.1.
664
Clauses 16 and 17.3.
665
Clauses 16 and 17.2.
666
In which case, Clause 16 is of no effect.
667
Clause 16.1.

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Unless prepared as a Building Information Model in a Common Data Environment, which

automatically records such information, the Contractor’s Design submissions are to be recorded
in a database by the Contract Administrator.668 Unless instructed otherwise, the Contractor may
not start any Design Stage until the previous stage has been signed off as satisfactorily
completed.669

Necessarily, the Contractor’s Design also includes any design prepared by a Subcontractor or
supplier and by the terms of the Subcontract each Subcontractor it is to indemnify the Contractor
against any deficiency in its design and warrants to the Employer the sufficiency and quality
of its design.

The duration and cover required of any Professional Indemnity insurance to be taken out by the
Contractor must be stated in the Special Conditions. It should be borne in mind in this regard
that post-completion design liability is notoriously difficult to predict and the Employer might use-
fully consider requiring a single premium payment for the Contractor’s project-specific professional
indemnity insurances.670

Where the Contractor designs the whole of the Works and unless the Special Conditions state
otherwise, apart from those licences and permissions required for the carrying out of the Works,671
the Contractor must also obtain those required for the development of land and occupation of the
finished project.672

Where a Contractor’s Design is a Contract Document it must conform to the other Contract
Documents. 673 In the event that there is in it, or between it and any other Contract Document or
Local Law, any actual or potential impossibility, clash, conflict, discrepancy, omission, error,
inconsistency and/or ambiguity, it must be notified to the Contract Administrator,674 who is obliged
to issue instructions for correction. The time and cost effect of compliance with such instructions is
at the Contractor’s risk.675

Whilst the Contractor owns the copyright in any design it produces, the Employer is to have a
perpetual, irrevocable, non-exclusive and royalty-free licence to use the Contractor’s Design676
in connection with

constructing the Works

resolving any issue or dispute arising out of or in connection with the Contract

668
Clause 16.9.
669
Clause 16.5 and 16.6.
670
Clause 10.
671
Clause 28.1.1.
672
Clause 28.1.2.
673
Clause 3.3.
674
Clauses 3.5.
675
Clause 3.7.2.
676
Clause 14.2.

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commissioning, maintaining and operating the finished project

promotional activity, advertising, leasing or selling, and/or
repairing or altering the project, irrespective of who performs such repairs or alterations.

BUILDING INFORMATION MODELLING

Building Information Modelling can be achieved in a number of different prescribed levels of

sophistication ranging from uncoordinated 2D computer aided design Drawings, printed on paper,
to a fully integrated and collaborative virtual web based Model, which includes construction
sequencing, cost and scheduling data and operations and maintenance management information.
The lowest level of maturity is referred to as Level 0 and the highest, Level 3. The Contract provides
for working at Level 2, as a coordinated three-dimensional Model or a Federated Model comprising
separate Models, with data attached.677

Where the design is to be prepared by the Contractor using Building Information Modelling, the
Contractor is responsible for appointing its own design coordination manager,678 who must produce
a Design Execution Plan for the Contract Administrator’s approval within 20 Business Days after the
Start Date.679

The Conditions anticipate the preparation of a Building Information Modelling Protocol identifying
the participation and responsibility of the various designers in the preparation of whatever individual
Models are required or a Federated Model. If a project-specific Protocol is not identified in
Appendix B then for the avoidance of ambiguity, it is important to delete from the default Protocol680
any clause giving that Protocol priority over the Contract Conditions.

Where the Works are designed by or under the direction of the Employer, the party responsible
for the maintenance of the Model will be the Employer’s design coordination manager (usually
working under the direction of the lead design consultant) to ensure the proper coordination of
that Contribution.

The Contract requires time and cost data to be contained in the Working Schedule,681 which can
be integrated with a Model if required. In any case, where a Model is used the Working Schedule
must adopt the same coding structure as the Model.682

677
The UK Government’s published Building Information Modelling strategy requires the industry to achieve this Level 2 maturity by 2016.
678
Clause 17.3.2.1.
679
Clause 15.1.
680
Clauses 17.4 and see also ”Appendix B, Building Information Modelling Protocol”, on page 20.
681
Clauses 37 and 38.
682
Appendix D, Paragraph D6.

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INSURANCES

There are no default provisions for insurances under the Contract. The Contract provides for those
insurances which are specified in the Special Conditions to be taken out for the duration and cover
stated and for redress if they are not.683 The parties are advised to take professional advice from
their insurance brokers on the insured risks cover and duration which is appropriate in relation to
the parties, the project and the nature of the work or services to be performed.

TESTING AND COMPLETION TESTING

The Contract provides for the interim testing of any samples of work, materials, goods or plant and
also provides for Completion Testing.684

Interim testing and Completion Testing are to be separately defined in the Specification which is
required to identify everything to be tested, its location, the method of testing and the Standards
to be achieved.

Completion Testing is relevant to any tests which must be carried out and satisfactorily completed
after the Works or any Section have been carried out and before it is deemed to be Substantially
Complete.685

In complex mechanical and/or electrical plant or engineering,686 commissioning and Completion

Testing requirements are often extensive and on such projects, the Contractor is also likely
to be required to provide Performance Bonds, guarantees and Collateral Warranties.687

Where any interim or Completion Testing is required, the appropriate Activities must be indicated
in the Working Schedule and described in the Planning Method Statement. The Activities are to
be logically linked to the completion of Activities, trades, resources or sequences to which
they relate.688 The anticipated extent and timing of any testing will thus be plain for all to see from
the Working Schedule and Planning Method Statement.689 Nonetheless, the Contract also provides
for notice of any testing to be given no later than five Business Days before any test is to be carried
out.690 All testing is to be witnessed by the Contract Administrator and such other persons whose

683
Clause 10.
684
Clause 26.
685
By definition, Substantial Completion cannot be achieved until all the work required under the Contract has been performed and operation and
maintenance manuals required by the Specification have been provided.
686
For example, power stations, wind farms, hospitals, advanced science laboratories, high technology buildings and other projects procured
on a turnkey basis.
687
See Clauses 8 and 9.
688
Clause 37 and Appendix D, Paragraph D3.
689
Clauses 26, 37 and 38.
690
Clause 26.3.

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attendance may have been required, such as any relevant designer, supervisor, clerk of works or
the Employer.691

The Contractor may proceed with any testing on the scheduled date irrespective of whether the
Contract Administrator or any other person required attends, unless the Contract Administrator
instructs otherwise.692 If the Contract Administrator instructs the Contractor to defer the tests, the
instruction is an Employer’s Time and Cost Risk Event.693

TERMINATION

The Contract provides for termination of the Contractor’s employment under the Contract in four
categorised situations. These are for

without fault on either side694

the Contractor’s insolvency or specified default695
the Employer’s insolvency or specified default,696 and
where without fault on the part of the Contractor it becomes impossible or illegal to
continue or part or the whole of the Works is suspended by reason of any of the
occurrences in Appendix F for a continuous period of 120 Business Days or more.697

The latter case applies to all occurrences described in Appendix F, irrespective of whether they are
described as being at the Employer’s or Contractor’s risk as to time and/or cost.

INSOLVENCY

Unlike termination for default, there is no power to repair insolvency and termination is immediate.
If at any time before issue of the Certificate of Substantial Completion either party698

becomes bankrupt or insolvent,

goes into liquidation,
has a receiving or administration order made against it,

691
Clause 26.1.
692
Clause 26.4.
693
Appendix F, Paragraph F10.
694
Clause 68.
695
Clause 69.
696
Clause 70.
697
Clause 71.
698
Clauses 69.1 and 70.1.

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compounds with its creditors, or

carries on business under a receiver, trustee or manager for the benefit of its creditors, or
anything occurs which under Applicable Law has the effect of depriving the that party of
the power to manage its financial affairs,

the other party may notify defaulter that the Contractor’s employment is immediately terminated,
stating the Clause under which the termination is effected and the Contract Termination Date.

If, at the time of termination for Contractor insolvency, it has failed to provide in accordance with
Clause 8.1.2 any requested sub-contractor Collateral Warranties in favour of the Employer that
include step-in rights which would allow the Employer to take over the sub-contracts and complete
the Works, then to the extent it fails to do so and to the extent the failure is not due to sub-
contractor insolvency, the Employer may withhold a reasonable proportion of any sums owing to
the Contractor until such Collateral Warranties are provided.699

On the other hand, where notice of termination is given for a specified default,700 the notice must
state

the nature of the default

the date of its occurrence, and
the action required to remedy the default or, if appropriate, that it believes the default
is incapable of being remedied

the defaulting party is then given 10 Business Days to correct the default following which, within 5
more Business Days the Contractor’s employment may be terminated.701

Notwithstanding that the innocent party believes the default to be incapable of being remedied, the
defaulting party may nevertheless, within 5 Business Days propose a solution, which at the innocent
party’s discretion may be accepted or rejected, or if further details of the proposal are requested,
they must be provided within a further 10 Business Days before the Contractor’s employment may
be terminated.702 In all cases, on termination the Contractor is entitled to be paid for the Current
Contract Value of work done, valued in accordance with Clause 61, together with the value of any
Contractor’s Plant, Temporary Work, or Welfare Facilities remaining on Site after termination.
Where termination is without fault, the Contractor is entitled to be paid in addition

the cost of removal from the Site of any Contractor’s Plant, Temporary Work, or Welfare
Facilities which are to be removed703
any costs and loss and/or expense incurred by the Contractor and arising directly from the
termination704

699
Clause 69.2.
700
Clauses 69.3 and 70.2.
701
Clauses 69.4 and 70.3.
702
Clauses 69.5, 69.6, 70.4 and 70.5.
703
Clause 68.2.1.
704
Clause 68.2.4.

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the amount of any unrecovered Overheads and Profit on the uncompleted work at
the date of termination.705

Where termination is for Contractor default, the Contractor’s basic entitlement arising out of
termination without fault is to be reduced by

any expenditure and/or loss arising directly from the termination incurred by the
Employer, and
the cost to the Employer of completing the Works.706

Where termination is for Employer default, the Contractor is also entitled to paid in addition

the amount of any Overheads and Profit on work not completed at the date of
termination707
the cost of removal from the site of any Temporary Work, Contractor’s Plant, or Welfare
Facilities which are to be removed708
the value of any Contractor’s Plant. Temporary Work and unfixed goods and materials
remaining on Site709
any costs and loss and/or expense suffered by the Contractor and arising directly from
the termination.710

Where termination occurs because it is impossible or illegal to proceed or there has been a
prolonged suspension caused by one of the stipulated risks the Contractor is also entitled to be
paid for the value of any Temporary Work, Contractor’s Plant and unfixed goods and materials
remaining on Site.711

Apart from the stated heads of claim, the Contractor is not be entitled to any other consequential
loss or damages for termination.712

Flow Chart No. 11, “Termination”,713 illustrates the timescales and process of the various methods
of termination.

705
Clause 68.2.1.
706
Clause 69.9.
707
Clause 70.7.1.
708
Clause 70.7.2.
709
Clause 70.7.3.
710
Clause 70.7.4.
711
Clause 71.3.
712
Clause 72.4.
713
See page 105.

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Issue and Dispute Resolution

The Contract provides for the private processes of mediation714 conciliation715 and Expert
Determination for the contemporaneous resolution of differences of opinion. However, if the
parties cannot agree, or do not accept the Expert’s Determination, either party may refer their
dispute to adjudication and/or arbitration according to the appropriate rules, or if it identified as
such in Appendix B, the courts of a particular jurisdiction.716 In such formal proceedings, either
party may call the Principal Expert or any other Expert who has played a part in the Determination
as a witness and the Expert’s Determination may be produced as evidence in the proceedings.717

Unless the parties agree otherwise, as it is with the decision of a court, any Adjudicator’s Decision
and/or the Arbitrator’s Award is a public document.718

Flow Chart No. 12, “Issue Resolution”,719 illustrates the timescales and process of the various
methods of dealing with differences between the parties by conciliation, Issue Resolution,
Adjudication and Arbitration. Mediation is available to the parties at any time, by agreement.720

ISSUE RESOLUTION

The Contract takes the view that differences of opinion as to liability and hence the party who is
empowered to control the risk should be dealt with immediately, otherwise the party ultimately
responsible will be deprived of its ability to control its exposure to risk. Accordingly, the Contract
provides that differences of opinion arising during the Contract should not be permitted to remain
unresolved until it is too late to do anything about them other than compensate the injured party,
but should be brought to the fore immediately and resolved privately, if possible.721

Where the difference of opinion concerns the rejection or conditional acceptance of a submission or
the power to issue particular instructions or certificates, the issue must be resolved immediately,
or within 5 Business Days must be submitted for Issue Resolution. If not so submitted, those
particular issues are deemed to be agreed and can then no longer form the basis of a dispute.

The particular issues upon which a time limit is imposed before agreement is deemed to have
been reached are

714
Clause 74.1.
715
Clause 73.3.
716
Clause 74.11
717
Clause 73.11.
718
Clause 74.6.
719
See page 106.
720
Clause 74.1.
721
Appendix G, Paragraph 1.

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015 88

TIME AND COST MANAGEMENT CONTRACT USER NOTES

Difference of opinion Clause Clause subject matter

Conditional approval amounts to a Variation 13.6 General submissions

Rejection is not empowered by the Contract 13.6 General submissions
Conditional approval amounts to a Variation 15.6 Design Execution Plan
Rejection of submission is not empowered by the Contract 15.6 Design Execution Plan
Whether conditions are unforeseeable 20.4 Unforseeable Conditions
Whether notice has been properly given for inspection 26.10 inspection of work, goods, materias and Permanent Plant
Whether work the subject of a search is defective 26.10 search for defective work
Objection to instructions not issued 31.4 obligation to issue instructions
Rejection of instructions issued 31.4 power to issue instructions
Rejection of valuation of Variation 33.6 valuation of variations
Rejection of a valuation or measurement 33.6 valuation of variations
Conditional approval amounts to a Variation 38.11 values attributed to Activities in Working Schedule
Rejection is not empowered by the Contract 38.11 values attributed to Activities in Working Schedule
Conditional approval amounts to a Variation 39.4 Progress Records
Rejection is not empowered by the Contract 39.4 Progress Records
Conditional approval amounts to a Variation 40.5 conflict between Progress Records and Draft Updated
Working Schedule
Rejection is not empowered by the Contract 40.5 conflict between Progress Records and Draft Updated
Working Schedule
Conditional approval amounts to a Variation 40.8 Draft Updated Working Schedule
Rejection is not empowered by the Contract 40.8 Draft Updated Working Schedule
Conditional approval amounts to a Variation 41.6 Draft Revised Working Schedule
Rejection is not empowered by the Contract 41.6 Draft Revised Working Schedule
Instructed acceleration or recovery cannot be complied with 50.1 Instructed acceleration or recovery
Instructed acceleration or recovery is not empowered 50.1 Instructed acceleration or recovery
by the Contract
Objection to notice of Substantial Completion 54.3 Substantial Completion

Within 5 Business Days of notice of an Issue referral, the Employer’s Representative and
Contractor’s Representatives (if available722) are to formally attempt to agree the matter, if at
all possible.723 If they have not done so within a further 5 Business Days (10 Business Days from
the notice), the matter is automatically referred to the Principal Expert for Determination.724

If the Principal Expert is not identified in Appendix B, then the appointment can be agreed between
the Employer’s Representative and Contractor’s Representative for a specific reference, or in default,
the Principal Expert is to be appointed by the Appointing Body (if any) and, if none is identified then
by default, the Academy of Experts.725

722
If not then aother Director of the Company or senior employee with authority to agree the issue.
723
Clause 73.3.
724
Clause 73.4.
725
Clause 73.5 and see Appendix B, “Appointing Body”, on page 30.

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015 89

TIME AND COST MANAGEMENT CONTRACT USER NOTES

For any particular issue, the Principal Expert may call on other experts named in Appendix B. Where
it is necessary to consult another expert not identified in Appendix B, either because none is
identified in the appropriate discipline or, if identified, is not available at the time, the Principal Expert
may consult such other person as it considers necessary.726

For every issue referred to Issue Resolution, the Principal Expert is required to determine727

whether the Contractor’s submission properly complies with the Contract and, if not, with
which term of the Contract it is in breach
whether the rejection of the submission, valuation, or measurement, if any, was proper
in the circumstances
whether the conditions applied to acceptance, if any, would properly have rendered the
submission, valuation, or measurement not in conformance with the Contract
whether the conditions applied to acceptance, if any, amount to a Variation of the Contract
whether and, if so, what other conditions should reasonably be applied to acceptance, and
any other questions identified or required by the parties having regard to the nature of the
Issue.

The procedure to be adopted is set out in Appendix G. In summary, the other party has 5 Business
Days in which to formulate its response,728 during which time the parties’ representatives are to
meet to attempt to resolve the issue. If the issue is not resolved to their mutual satisfaction within
a further 5 Business Days, the Principal Expert takes over management of the Issue Resolution
procedure and must make its Determination within a further 20 Business Days,729 the whole
procedure from notice of referral to Determination being completed in 30 Business Days from
notice of referral.

The Principal Expert’s Determination may be relied upon by either party in any subsequent dispute
resolution procedure and the Principal Expert and/or any other expert who has contributed to the
Determination may be called as a witness, by either party, the nominated court or the arbitral
tribunal, in any subsequent dispute resolution proceedure.730

Flow Chart No.12, “Issue Resolution”,731 illustrates the timescales and process of Issue Resolution
in relation to Adjudication and Arbitration.

726
Clause 73.5.
727
Appendix G, Paragraph G 2.
728
Appendix G, Paragraph G 3.3.
729
Clause 73.7.
730
Clause 73.11.
731
See page 106.

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015 90

TIME AND COST MANAGEMENT CONTRACT USER NOTES

ADJUDICATION

The Contract contains provision for final dispute resolution by the courts of a named jurisdiction732
and for private dispute resolution by both Adjudication and Arbitration.733 However, unless Local Law
requires that a dispute may be referred to Adjudication at any time, (as it does, for example, in the
UK and several other jurisdictions734), no dispute arises unless and until the Principal Expert has
issued its Determination.

In order to provide transparency in the operation of the Contract and to provide the industry with
guidance on the way disputes under the Contract are dealt with, unless the parties agree otherwise
both the Adjudicator’s Decision and the Arbitrator’s Award are to be public documents.735

When Local Law does not, Appendix B permits the Employer to identify whether Adjudication is to
apply,736 and if so, by what rules the adjudication is to be conducted 737 and who the adjudicator
should be.738 If no rules are identified in Appendix B but adjudication is identified as a means of
dispute resolution then, by default, the rules to be applied are the Scheme for Construction
Contracts modified as necessary to meet any requirements of adjudication under Local Law.739 If
no adjudicator is named in the Contract or subsequently agreed, then the appointing body for the
purposes of the Scheme is the CIOB.740 Joinder appears to be rarely sought in adjudication and it is
not provided for in the standard form.741 If the parties require joinder provisions for adjudication
they should be included in the Special Conditions.742

Flow Chart No.12, “Issue Resolution”,743 illustrates the timescales and process of Adjudication in
relation to Issue Resolution.

732
Clause 74.11.
733
Clause 74.
734
See Note 160.
735
Clause 74.6.
736
Clause 74.7 and see “ Appendix B, Adjudication”, on page 30.
737
Clause 74.7 and see ”Appendix B, Rules of Adjudicator”, on page 31.
738
Clause 74.8 and see ”Appendix B, The Adjudicator, on page 31.
739
Clause 74.7.
740
Clause 74.8 and see Appendix B, “Appointing Body”, on page 30.
741
Whether joinder of statutory adjudication is permissible is undecided in English law although there is obiter authority, see Yuanda (UK) Co Ltd v WW
Gear Construction Ltd, [2010] EWHC 720 (TCC) per Edwards-Stuart J.
742
Clause 74.14.
743
See page 106.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

FINAL DISPUTE RESOLUTION

COURT

Where it is intended that final dispute resolution is to be by the courts of a particular jurisdiction,
that must be stated where indicated in Appendix B, otherwise the final dispute resolution process
will be arbitration. Arbitration can be advantageous due to the ease with which an arbitral award
obtained in one country can be enforced through the courts of another country. Enforcement
can be a key consideration on international projects. This is because 146 states (as at the time of
writing) are signatories to the New York Convention 1958,744 under which they have agreed to such
reciprocal enforcement, subject to a few exceptions. In comparison, there is no similar treaty of
equal spread to deal with the reciprocal enforcement of foreign court judgements.

ARBITRATION

Unless the courts of a particular jurisdiction are identified in Appendix B as the tribunal of final
dispute resolution, final dispute resolution is by Arbitration according to the rules identified in
Appendix B,745 or if no rules are identified then in accordance with the Arbitration Rules of the
London Court of International Arbitration.746

The arbitrator may be named in the Contract.747 The appointment of the same arbitrator across
all Connected Contracts, Consultancy Appointments and Subcontracts should lead to greater
consistency between the various arbitral awards, regardless of joinder/consolidation of claims.
If not specified in the Contract or subsequently agreed, the appointing body is the CIOB.748

Joinder provisions permit the Contractor to be joined to arbitrations commenced in respect of other
agreements involving the Employer and provide for the Contractor’s consent to joinder of third
parties to an arbitration under the Contract.749

Contracts between the Employer and a third party such as Connected Contracts (e.g. finance
agreements and development agreements) and consultancy appointments (e.g. contracts
with the Contract Administrator and Listed Persons) should also provide for the third party
to be joined to an arbitration under the Contract.

The Contract contains joinder provisions which permit the Contractor to be joined to arbitrations
commenced about disputes related to other agreements involving the Employer and require

744
The International Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
745
Clause 74.11.
746
Clause 74.11 and see” Appendix B, Rules of Arbitration”, on page 31.
747
Clause 74.12 and see ”Appendix B, The Arbitrator”, on page 31.
748
Clause 74.11 and see “ Appendix B, Appointing Body”, on page 30.
749
Clauses 74.13 and 74.14.

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TIME AND COST MANAGEMENT CONTRACT USER NOTES

the Contractor to consent to the joinder of third parties to an arbitration under the Contract. In order
to make sure that contracts between the Employer and a third party allow such third party to be
joined, they should contain a clause to the effect that

“Notwithstanding any other provision of this agreement, the parties hereby agree to
be bound by Clause 66.14 of the [Construction Contract] and acknowledge that they
shall be Consenting Parties for the purposes of that clause.”

The consolidation of claims, combining arbitrations under different agreements into a single
proceeding, is more complex because the contracts may range from upstream Connected
Contracts750 to agreements which sit alongside the construction contract.751 Whilst it may not be
easy to agree consistent arbitration clauses, the joinder/consolidation clauses752 will bind both the
Employer and the Contractor in respect of the Contract as well as any third party which has agreed
to be bound by the provisions.753 Such third party agreement can either be set out in the contract
with the Employer or the third party can confirm its agreement by a short side letter to the Employer
in the terms suggested above.

The arbitrator with jurisdiction to hear the consolidated dispute will be the arbitrator appointed in
respect of the first referred claim.754 If that claim did not arise out of the Contract, the arbitration
procedure for the consolidated proceeding will be that which is set out in the relevant contract (or
which was agreed ad hoc for that contract) and the applicable law, arbitration rules and seat and
procedural law which then apply may differ from those agreed in the Contract.

Clauses 74.14 and 74.15 also permit the Employer to consolidate against the same Contractor two
or more claims it has under different contracts into one for the purposes of the arbitration.755
Flow Chart No.12, “Issue Resolution”,756 illustrates the timescales and process of Arbitration in
relation to Issue Resolution and Adjudication.

750
For example, finance and development agreements which will largely dictate the construction terms under the construction contract rather than
vice versa.
751
For example, service agreements with the Contract Administrator, Listed Persons directly appointed specialist contractors, and so on.
752
Clauses 74.14 and 74.15.
753
A party with which the Employer has entered into an agreement. This will include appointments of Listed Persons, development agreements,
agreements for lease, collateral warranties from novated consultants, and so on.
754
Clause 74.15.
755
For example, where the Contract serves as the construction contract but the Employer has also entered into a project-specific operation and
maintenance agreement with the same Contractor.
756
See page 106.

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015 93

 Clause 40.1
Contractor provides
Update MODEL TIME-LINE
of Working Schedule
to Time Manager for acceptance

Clauses 60 and 61 Clauses 64 Clauses 66.3.2 Clauses 66.3.1

Clause 5.1
Predicted Cost and 65 and 66.5.2 and 66.5.1
reviewed, latest date for
Access Date Notice Date
statement of Final Date
(earliest date for and service of a
commencement of
Current Value Pay Less for
issued, Notice of
Works on Site) Notice Payment
and Payment Payment
becomes Due Due

5 5 5

20 Business Days 20 Business Days

Business Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21222324 25 26 27 2829 30 3132 3334 3536 3738 39 40 41 424344 4546 4748 4950 51 5253 545556 5758 59 60 61 626364 6566 67 68 6970 71 72 73 74 7576 77 78 79 80 8182838485 86 87 88 89 90 Business Days
TIME AND COST MANAGEMENT CONTRACT USER NOTES

20 Business Days 20 Business Days 20 Business Days 20 Business Days

Start Date

Clause 15.1 5 5 5 5 5 5
submission of
Design
Execution Plan Clause 5.1
and Clauses Clause 30.1
37.5 and 37.6
Access Date Clause 30.1
(earliest date for Progress Progress
submission of
commencement of Meeting
Working Meeting
Schedule Works on Site)
for acceptance

20 Business Days

Clause 43.6 Clause 43.6

Latest date for inclusion of Impact on last accepted Latest date for inclusion of Impact on last accepted
updated Working Schedule updated Working Schedule

Clause 39.5 Clause 39.5

Clause 41.1 Time Manager Clause 41.1
Time Manager Contractor provides Contractor provides
provides
provides
Revision Database Revision
Database
of Progress of Working Schedule of Progress of Working Schedule
to Time Manager for acceptance Records to Time Manager for acceptance
Records
Submissions Submissions

20 Business Days 20 Business Days

Clause 39.2 Clause 39.2 Clause 39.2

Contractor provides Contractor provides Contractor provides
Database Database Database
of Progress Records of Progress Records of Progress Records
to Time Manager for to Time Manager for to Time Manager for
acceptance acceptance acceptance

Clause 40.1 Clause 40.1 Clause 40.1

Contractor provides Contractor provides Contractor provides
Update Update Update
of Working Schedule of Working Schedule of Working Schedule
to Time Manager for acceptance to Time Manager for acceptance to Time Manager for acceptance

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

94
 FLOW CHART NO.1 – FAILURE TO DISTRIBUTE OR PUBLISH 1

Clauses 15.7 and 23.7 Clauses 40.4,

Contractor may not carry out any work not 41.4 and 48.2
Contractor Clause15.6 and 23.6
described by a compliant submission, if work has Accepted submissions No
Yes Yes recovers culpable Yes Contractor provides Yes Yes
been started Contract Administrator reflected in further
delay at its own compliant submittal
instructs suspension of the works, Working Schedule action
Temporary Works or any part of them expense

No No
TIME AND COST MANAGEMENT CONTRACT USER NOTES

There has been a

failure to distribute a Clause 15.1
contractually distribution of Design
Clauses 15.7, 23.7 and 57
compliant submission Execution Plan
Contractor is responsible
for acceptance
for delay to progress, and
liable for expenditure Go to
and/ or loss, liquidated Go to Flow Flow Chart 1
No Chart 11 (failure to
damages and/ or
consequential loss up to (termination) publish)
Clause 23.2 the limit of the specified
distribution of caps, if any
No Contractor’s working Yes
methods

Clause 36.1 Clause 36.2 Clauses 43.8.1 and 44.3.1

Clause 36.1 Clause 36.1 Employer may employ Contract Administrator
Clauses 37.5, 37.6, 39.2, 40.1, At any time thereafter
There has been a Project Time Default others to make must use the records and
40.6, 41.1 or 42.5 Contract Administrator
failure to publish Manager notifies Continues for investigations, keep schedules to determine
Submission concerns Progress Yes notifies Contractor of Yes Yes
a contractually Yes Contract more than 5 records and make Contractor’s entitlement to
Records or the Working default and instructs
complaint submission Administrator of Business Days schedules of work done extension of time
Schedule Contractor to make good
for acceptance Contractor’s default and/or compensation
its specified default

No No
Clause 43.6
Submission concerns
No Impact of an
Event on the
Working Schedule Clauses 43.8.2 and 44.3.2
Contract Administrator
No Clause 64.3.1
may use any information
further Employer recovers
suitable for
action cost from
determining Contractor’s
entitlement Contractor

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

95
 FLOW CHART NO.2 – WORKING SCHEDULE 2

Clause 37.5 Clause 38.10

Start Contractor required to 20 Business Clauses 37.5 Cost Manager advises Time
5 Business
Date design whole of the Days and 37.6 Manager on sufficiency
Days
Works Contractor of pricing
publishes Draft
Working
Schedule with
Clause 37.2
Planning Method Clause 37.8
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Statement and Time Manager Clause 13.6 Go to Flow

Clause 37.7 High notifies Contractor that Contractor disagrees
20 Business Days 10 Business 5 Business Contractor submits Chart 12
No Density data submission is rejected or Yes with Time
before Access Days Days issue for Issue (Issue
conditionally accepted Manager’s decision
Date Resolution Resolution)
specifying reasons

No No
No

Clauses 13.4
Contractor
10 Business corrects defects 5 Business
Days and publishes Days
compliant Draft
Working Schedule
Appendix D Paragraph D13 Clause 37.9
No
Submittal maintained in Time Manager advises Yes
further Yes Common Data Contract Administrator that
action
Environment submittal is accepted

No No

Clause 37.11 Go to Flow

Time Manager Chart 1
maintains database (failure to
record of submission publish)

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

96
 FLOW CHART NO.3 – PROGRESS RECORDS 3

Clause 15.1
Start Contractor required to Clauses 39.2
Date design whole of the Contractor
Works maintains Clause 39.3
Clauses 39.2
progress records Time Manager Clause 13.6 Go to Flow
Clause 39.2 Contractor Contractor disagrees
for each notifies Contractor that Contractor submits
At status interval publishes 5 Business with Time 5 Business Chart 12
Business Day Submission is rejected or issue for Issue
specified in Progress Days Manager’s decision Days (Issue
after conditionally accepted resolution
Appendix B Records Resolution)
commencement specifying reasons
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Database for
in accordance acceptance
Contractor
with
commences
Appendix E
No work on Access
Date

No Yes No

No No
Go to flow Clause 13.4
Chart 1 5 Business Contractor
(failure to Days corrects
publish) defects
and publishes
compliant
Progress
Clause 39.4
No Appedix E Paragraph E 10 Records
Time Manager
further Yes Progress Records advises Contract Yes
action maintained in Common Administrator that
Data Environment submission is accepted

No
No

Clause 39.5 Go to Flow

Time Manager Chart 1
maintains database (failure to
record of submission publish)

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

97
 FLOW CHART NO.4 – UPDATE OF WORKING SCHEDULE 4

Clause 40.4 Clause 40.5

Clauses40.1
Clause 40.2 Contractor Time
and 40.3
Clause 39.1 Clause 40.1 Contractor revises its Manager
Work has Contractor
and 39.2 Contractor resets Data intentions notifies Clause 13.6
been carried out Progress publishes Contractor Go to Flow
inputs Date, so as to Contractor Contractor
since status date Records 5 Business Draft Updated disagrees Chart 12
Progress reschedules overcome 5 Business that 5 Business submits
of last accepted Yes have been Days Working Yes with Time (Issue
Records into Working any Days submittal is Days issue for Issue
Working Schedule published for Schedule and Manager’s Resolution)
Working Schedule and predicted rejected or Resolution
acceptance distributes decision
Schedule recalculates delay to conditionally
Planning Method
Critical Paths achievement accepted for
Statement for
of a specified
acceptance
Due Date reasons
TIME AND COST MANAGEMENT CONTRACT USER NOTES

No

Yes No

Go to Flow
Chart 3
(Progress
Records) Clause 54.4
Certificate of
Substantial
No Yes 10 Business No 5 Business Clause 13.4
Completion issued
Days Days Contractor
since the last
published update corrects
defects and
submits
compliant
Draft Updated
Working
No Schedule and
Planning
Method
Clause 40.7
Statement
No Appendix D paragraph D13 Time Manager advises
further Submission is maintained Contract Administrator
Yes that submission is
Yes
action in Common
Data Environment accepted

No
No

Clause 37.11 Go to Flow

Time Manager Chart 1
maintains database (failure to
record of submission publish)

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

98
 FLOW CHART NO.5 – REVISION OF WORKING SCHEDULE 5
Clause 23.5
Clause 23.3 Contract Administrator
Clause 23.3 25 Business Contractor revises notifies Contractor that
Within 15
Contractor Days before its statement of submittal is rejected or
Yes Business
wishes to change work is carried working methods conditionally accepted
Days
its way out and distributes it for specified reasons
of working for acceptance

No
No
Contractor’s proposals
are deemed accepted Clauses 41.1, Clause 41.5
TIME AND COST MANAGEMENT CONTRACT USER NOTES

41.2 and 41.4 Time

Clause 41.2 Clause 41.2
Contractor Manager
Contractor has Yes Contractor revises the
publishes notifies Contractor
obtained better Working Schedule Go to Flow
Clauses 41.4 Draft Revised Contractor disagrees Clause 13.6
information about accordingly 5 Business Chart 12
Contractor recalculates Critical Paths Working that Yes with Time 5 Business Contractor
the work to be done Schedule and Days submission is submits (Issue
and revises its intentions so as to Manager’s Days
or the resources distributes rejected or issue for Issue Resolution)
overcome any predicted delay to decision
to be used Planning Method conditionally Resolution
Clause 41.1 achievement of a Due Date
Statement for accepted for
Contractor recalculates
acceptance specified
durations and logic in
reasons
high density part of
No Working Schedule No
No
according to intended
resources and
productivity and revises No
the Working Schedule
Clause 41.1 and Planning Method Clauses 13.4
Status interval Statement accordingly Contractor
Yes 5 Business
identified in corrects
Days
Appendix B defects and
has elapsed publishes
compliant Draft
Revised Working
Clause 41.6 Schedule and
No Appendix D paragraph D 13 Time Manager Planning Method
No Submittal is maintained advises Contract
further Yes Yes Yes Statement
in Common Administrator that
action
Data Environment submission is accepted

No
No

Clause 37.11 Go to Flow

Time Manager Chart 1
maintains database (failure to
record of submission publish)

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

99
 FLOW CHART NO.6 – EARLY WARNING 6

Clause 35.2
Contract
Clause 35.1 Clause 35.1 Clause 35.3
Clause 34.1 Administrator
Contractor Administrator Risk Management Instructions issued Go to Flow
Event described in Clause 34.2 updates Risk
adds Event to Risk meeting determines involve a revision Chart 5
Appendix F is Contractor is aware Clause 34.2 As soon as 5 Business Register
Yes 5 Business Register, convenes risk strategy for dealing of Working Yes (revision of
perceived to be of the material Contractor possible Days identifying new
Days management meeting with risk of Event Schedule and Working
likely to occur or circumstances prepares Data Date,
and issues any and/or its Planning Method Schedule)
is occuring description and revisions of risk,
necessary instructions consequences Statement
likely effect on agreements
progress and made and
issues to Contract instructions
Administrator Yes issued
TIME AND COST MANAGEMENT CONTRACT USER NOTES

No and Listed
Persons No
as an Early Clause 43.2 Clause 43.2
Warning Event comprises Contractor
a change in a prepares logically
Clause 34.1 Yes Yes
planned Activity linked Fragnet
Employer, Contract or an additional of Event
Administrator or Activity No
Listed Person notify further
Contractor of material action
circumstances
Other Events
have occured
No since last
Clause 43.4 and Clause 43.4
Progress Meeting
43.5 Contractor Contractor
adds Fragnet or non- publishes Draft
working period to Impacted Working Appendix D
Working Schedule Schedule and Paragraph D 13 Go to Flow
Clause 43.3 Clause 43.3 5 Business Chart 7
sequentially, Planning method Submission is
Event comprises Contractor dentifies Days before (extension of time
recalculates the Statement maintained
a suspension Yes non-working No next Progress Yes and
Critical Path, identifies showing effect of in Common
of a working period in Meeting compensation)
effect and publishes Data
period appropiate working all Events occuring
Draft Impacted Environment
calendar since the last
Working Schedule
and Planning Method Progress Meeting
Statement for for acceptance
acceptance

Clause 43.7.1 No
Contractor proceeds
to prepare submission
No
in time for next
Progress Meeting Clause 37.11
Time Manager
maintains database
record of submission

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

100
 FLOW CHART NO.7 – EXTENSION OF TIME AND COMPENSATION 7

No
Clause 49.1
Contract Administrator instructs
Contractor to consult wth Project
Time Manager to explore accelerative
measures to overcome likely delay

Clause 51.1.4
Clause 43 Clause 51.1.2 and 51.1.3 Clauses 51.2.1 and 51.2.2 Clause 49 Clause
Clause 51.1.1.1 Impact of the Event is
Draft Impacted Clause 51.1.1.2 Accurate Fragnet illustrates Time Manager Contract Administrator 51.2.2.1 Contact
Event identified likely to prevent the
Working schedule Event is an activities, duration, 10 Business advises Contract 5 Business instructs accelerative Administrator
in Appendix F works or a Section from Yes Yes
and Planning Method Employer’s resources and sequence or being completed by a Days Administrator of Days measures to overcome confirm Relevant
has occured Statement have non-working period entirely the likely
Time Risk Event Relevant Date for calculated effect of Completion
been published that has occured effect of the Event
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Substantial Completion Event or instructions Date

that may be given to
overcome predicted
effect of Event in
whole or in part

Yes
No No No No
Clauses 44.1.1
and 44.1.2
Delay to Clause 44.1
progress or Clause 51.3 Delay to Clause 49 Contract
Clause 44.1 Clause 44.1 Administrator
Contractor suspension Clause 51.3 Contractor progress Clauses
has caused, Contractor does not instruct
gives notice Clause 44.1 Any award and Clause 44 or suspension 51.2.2.1 and
5 Business 5 Business gives notice accelorative
that loss is causing Event is an previously Employer Event is also has caused, 51.2.2.2 Contract
Days before Days before that Loss measures
or is likely Yes Employer’s made is agree Yes an Employer’s is causing Yes Administrator
and/or next Progress next Progress and/or or instructs
to cause Cost Risk revised in Contractor’s Cost Risk or is likely awards extension
expense is Meeting Meeting expense is measures
prolongation Event only Event of time
likely to be light of estimate of to cause only to overcome
of level of likely to be accordingly
caused facts time effect Contractor part of likely
Effort caused
of event loss and/or effect of Event
durations expense
and/or loss
and/or
expense
Go to Flow
Chart 9 No Go to Flow
(valuation) Chart 9
(valuation)
No
Clause 51.3
Estimate of effects
Yes subsequently revised
in accordance with
No
accurate record
further
action

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101
 FLOW CHART NO.8 – CONCURRENCY 8

Clause 52.1 Loss and/or expense

Flow Chart 6 Clause 52.1.1 Clause 52.3 Clause 52.4
Without Event suffered as a result of the
Draft Impacted Progress of single Event is an Contractor is
same delay to progress delay to progress would
Working Schedule Yes Activity has been Yes Yes Employer’s Cost Yes not entitled to
would have been caused have been suffered
published for delayed between RIsk Event only compensation
to same Activity by a irrespective of the
acceptance identified dates
Contractor’s risk occurence of the Event
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Clause 52.3
some loss and/or expense suffered Go to Flow
No Yes No No as a result of the delay to progress Chart 9
would not have been suffered if the (valuation)
Event had not occurred

Clause 52.1.2 Clause 52.1.2 Delay to a Relevant

Event has caused delay Completion Date would Go to Flow
No Contractor’s risk has Clause 52.2.1
to progress of another have been suffered Chart 7
further delayed progress of Yes Delays are
Activity between the irrespective of the (extension of
action an Activity between concurrent
same identified dates occurence of the time)
identified dates
Contractor’s culpability

Clause 52.2.1
Delay to progress caused
No by Contractor is not on
a Critical Path to a
Relevant Completion Date

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 Clause 44.2 FLOW CHART NO.9 – VALUATION
Clause 44.1 Clause 60.1
9
Contractor produces Clause 61.2
Updated Working Costs and
all information and Cost Manager
Schedule indicates loss and/or expense
documentation reasonably calculates
Clause 38 progress affected incurred are
required relevant to proof Predicted Cost
Contractor’s Pricing Clause 40 by Employer’s included in Working
of costs and loss of Works
Document has been Working Cost Risk Event Schedule
and/or expense incurred
satisfactorily Schedule and
incorporated in the Planning
Working Schedule Method Clause
and Method Statement 60.1.2
Statement Updated with Predicted
Yes No No No
progress cost includes
achieved value of
Variation
Clauses 44.3
No Loss and/or expense not included in Predicted Cost
prior to Penultimate Valuation
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Clause 33.2
Variations are
Variation was
included in Predicted
5 Business Yes valued at the time Yes
Cost of the Works
Days it was instructed

Clauses 33.2
Revised time for 5 Business
valuation agreed Days
Clause 38.10 Clause 64
Go to Flow
Valuer advises Contract Administrator
Chart 12 No
Yes Project Time prepares a Notice
(Issue
Manager of of Payment Due
Resolution) No
defects in pricing

Clause 33.6 Clause 33.6

Clause 33.5 Clause 33.3
5 Business Days Clause 33.2.2 Disputed Valuation
Variation has 10 Business 5 Business
Clause 60.1.2 Yes notice of Variation measurement deemed
No been carried out Days is valued Days
No Contractor intention to corrected agreed
and completed
produces all measure
information and
documentation
reasonably No No
Clause 38.11 required
Clause 65
Values attributed are relevant to proof
Contractor
conclusive of the Yes of value Clause 33.5
prepares Go to Flow
value of Activities Valuation submitted to Clause 33.6
a Notice of 20 Business Chart 12
and Level of effort Contractor for 5 Business
Payment Due Days Contractor submits Valuation Yes
durations agreement Days (Issue
for Issue Resolution
Resolution)

No
No

No Clause 33.1.4 5 Business

further Valuer
Days
action makes a fair
valuation

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 60 Business
Days after termination or, FLOW CHART NO.10 – PAYMENT 10
in the case of Contractor default
the earlier of 100 Business Days after
Clauses 68, termination or 60 Business Days
69, 70 or 71 after completion by another
Notice of contractor Clause 62.2
termination Contractor provides any
has taken outstanding information
effect Yes 40 Business or documentation 20 Business
Days required for valuation Days

No Clauses 68.2, 69.9, 70.7 and 71.3

No Cost Manager issues statement
of Penultimate Valuation and Clause 66.3.2 or
payment becomes due 5 Business Clause 66.3.2 66.5.2 unless
Days before or 66.5.2 prohibited by
Final Date Payer issues
Yes
Applicable Law
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Flow Chart 9 Clause 62.3 for Payment a pay less

Clause 53 or 54 payer may pay
Predicted Cost Cost Manager uses 20 Business
Certificate of Partial notice lesser amount
of the Works available information Days
Possession or
has been Substantial
established Completion issued
Period Clause Payer
60 Business
Clause 65.1 stated in 66.3.1 pays in No
Days
Contractor issues Appendix B or 66.5.1 full Further Clause 66.4
5 Calendar or if none, final date
Yes Contractor
Notice of amount Action
Days Payment Due 20 Business for properly suspends all or any
Days payment due of its obligations
until payment is
Clauses 61.1, 64.1 and 66.1 made in full
At intervals Clause 67.1,
Cost Manager issues statement 5 Calendar
identified in unless prohibited by
of Current Value to Contract Days
Appendix B Applicable Law payee is
Administrator No No entitled to interest
Notice on unpaid amount
Date at rate stated in No
Appendix B
Clause 55.6
Certificate of 5 Calendar Clause 64.1
5 Business
Making Good Clause 63.2 Days Contract Administrator
Days
Defects issued Cost Manager issues Notice of Payment Due Clause 66.4
Contractor Payer
issues pays in
issues
statement Payee is the full
notice of 10 Business
of Final Contractor Yes amount
Clause 64.5 intention
Valuation Days
Final Valuation to suspend properly
Contractor all or any due
conclusive of amount
accepts Final Yes of its
due and work to
Valuation obligations
Contract
Administrator’s No
satifaction

Clause 66.6
Employer may
Go to Flow Payee is the deduct amount
Contractor refers Chart 12 from future amounts
20 Business Employer
No Final Valuation for (Issue due or recover
Days Issue Resolution Resolution) as a debt

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 FLOW CHART NO.11 – TERMINATION 11

Clause 69,3 Clause 69.3

Contractor has Employer notifies Contractor
committed an Yes 10 Business of nature and date of
act or omission Days default and if capable of remedy,
giving rise to what must be done to remedy
termination default

10 Business Clause 69.4 or 70.3 5 Business

Days Defaulting party fails to remedy default Days

Clause 69.5
No Clause 69.5 or 70.4 5 Business or 70.4 5 Business Clause 69.4.2,
5 Business
Defaulting party proposes a remedy Days Proposal is Days 69.6.2, 70.3.2
Days
rejected or 70.5.2
Termination
TIME AND COST MANAGEMENT CONTRACT USER NOTES

Clause 70.2 Date is

Clause 70.2
Contractor notifies Employer confirmed
The Employer has
of nature and date of default
committed an act or Yes 10 Business
and, if capable of remedy, what
omission giving rise Days
must be done to remedy
to termination
default

No
No

Clause 71.1 Clause 71.1

Clause 71.1.1 Either party Clause 69.7 or 70.6 Clause 69.5.1
Illegality,
It is illegal or notifies the 5 Business Defaulting party
5 Business impossibility Defaulting Party 10 Business or 70.4.1 5 Business
impossible to other of Days
Yes remedies the
Days or repeats the default Days Proposal is Days
proceed intention to default
suspension at any time accepted
terminate continues

No Yes
Clauses 68.1.2,
69.1.8, 69.4.2,
69.6.2, 69.7.2, 70.1.8, non-defaulting
Clause 71.1.2 70.3.2, 70.5.2, 70.6.2 Yes party notifies Yes
The Works or any part and 71.2.2 Clause 69.5.3 or 70.4.3 Clause 69.4.2, 69.6.2,
the other
has been suspended as Termination Date Defaulting party 70.3.2 or 70.5.2
a result of of an is confirmed required to provide 10 Business Defaulting party Yes
occurence listed in further details Days provides further details
Appendix F for more of proposed remedy of proposed remedy
than 120 Business Days Clause 69.1
or 70.1
Either party
Clause 68.1 becomes
insolvent
5 Business
Yes Employer wishes to terminate 5 Business No Days
without fault Days

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 Clause 73.3
5 Business
5 Business Authorised Representatives FLOW CHART NO.12 – ISSUE RESOLUTION 12
Days
Days meet to resolve issue

Clause 73.4
10 Business
Issue is resolved
Days
Clause 73.1
Clauses 13.9, 15.5, 23.5, Notice issued to
Clause 73.1 37.8, 38.10, 39.3 and 41.5 other party of a No
Issue concerns rejection or 5 Business matter for Issue
Disagreement Yes
conditional acceptance of a Days Resolution
has arisen
submittal Clause 73.4
Principal Expert is identified in Appendix B, or Clause 73.6
Yes subsequently agreed Yes Procedure in Appendix G
is followed

No
No
20 Business
Appointment date
TIME AND COST MANAGEMENT CONTRACT USER NOTES

No Days
of Principal Expert
Clauses 20.4, 24.11, 25.2, 25.6, 26.10,
31.4, 33.5, 33.6, 40.8, 50.1 and 54.3
Clauses 13.6,
Issue concerns other matters in which Yes 15.6, 20.4, 23.6, 24.9,
there is a brief time for referral
25.2, 25.6, 26.10, 31.4, Clause 73.7
33.4, 33.5, 33.6, 33.7, 38.5, Clause 73.4 Parties accept
Principal Expert appointed by Principal Expert
38.11, 39.4, 40.8, 41.6, Yes Expert’s Issue produces Issue
50.1 and 54.3 Appointing Body identified Determination
in Appendix B Determination
No
Issue is deemed
to be agreed
No
Another issue Clause 73.1 further
has arisen Notice is given to action
requiring an 20 Business Yes
other party of a
independent Days
matter for issue
opinion resolution No

Clause 74.7 Clause 74.7

No Adjudication Yes Procedure and
is applicable timing determined
by Adjudication
Rules identified in
Appendix B
No

Clause 74.11
Procedure and
Clause 74.11
timing determined
matter referred to court of nominated Yes by Court or
jurisdiction or arbitration commenced within
Arbitration Rules
limitation period imposed by Applicable Law
identified in
Appendix B

No
triable No
issue

2015 EDITION © CHARTERED INSTITUTE OF BUILDING 2015

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