BuildLaw Issue 26 December 2016 | Page 27

f) that certain types of records should contain facts only and offer no opinions;
g) the need to update records as necessary;
h) the need to maintain records for an appropriate amount of time; and
i) maintaining a collaborative document management system database.
These guidelines aim to deter disputes over the level of record-keeping and to reduce uncertainty when discussing an EoT. Whereas it falls short of recommending the use of Building Information Modelling (“BIM”) processes, it expressly recognises its growing use and recommends specific agreement regarding its content, use and ownership if such processes are adopted.
Documentation
Regarding programmes, little has changed other than a re-organisation of the section to make it more straightforward. With that said, the drafters have added new guidelines such as5:
a) the use of supplemental tools when works are output driven;
b) the incorporation of narratives to link programmes with method statements;
c) the Contract Administrator to specify the contractual requirements a proposed programme or update does not meet before labelling it as inadequate (as opposed to just giving reasons);
d) saving updated programmes in native format as opposed to PDF; and
e) that asking the Contractor to propose ways to mend delays is not the same as an instruction to accelerate at the Employer’s cost.
In addition to programmes, there are also progress records, resource records, cost records, correspondence and administration records (e.g., instructions, notices, variations, bonds, technical documents, milestone documents and claims, etc.) and, contract and tender documents. Each one of these six categories and sub-categories of documents has its own description, requirements and raison d'être.
Both Section 2 and Appendix C of the 2016 Draft enter into considerable detail in explaining each category of record. For example, Appendix B lists seven different types or stages of the programme (e.g., tender programme, proposed programme, accepted programme, etc.), seven different supplemental detailed programmes (e.g., design, delivery, testing and commissioning, etc.) and seven different types of explanatory records that “explain in words, graphics, and spreadsheets key considerations and assumptions underpinning the programmes,”6 such as narratives, progress curves, marked-up drawings and sketches, BIM files, etc.
Loss of Profits and Unabsorbed Overheads
Another notable improvement is the cost records guidance about loss of profits and unabsorbed head office overheads.7 In general terms, cost records should have enough detail to be able to link costs with delay or disruption events. However, when considering loss of profits and unabsorbed head office overheads, even when the Contractor uses a formula, it still needs to disclose certain information – to substantiate his claim – that it may not want to disclose, such as company accounts, tendering history, business plans, etc.
The 2016 Draft therefore proposes the agreement of “relevant rates in the contract,” for example, “staff rates to be charged in the event of an Employer Delay to Completion”.8
A clause setting such rates may be construed as a ‘Brown clause’ for liquidated prolongation costs. This is a clause that fixes a daily or weekly rate to compensate the Contractor for prolongation costs caused by Employer delays.9 This concept is not new to the Protocol10 but its application to loss of profit and arguably head office overheads for Employer Delay to Completion is.