Float in the Programme — Ownership and Consumption

Float is the lifeblood of programme management. It is the scheduling contingency that allows a project to absorb minor delays, re-sequence activities, and adapt to changed circumstances without immediately impacting the completion date. But float is also a battleground in delay claims. Which party can consume it? Does an employer risk event that uses up float — but doesn’t delay completion — create an EOT entitlement? These questions are central to many complex EOT disputes.

The Problem

The problem of float arises when the contractor’s programme contains scheduling contingency — time between the latest permissible finish of an activity and the contract completion date. This contingency may be explicit (a buffer activity) or implicit (activity durations planned conservatively). When an employer risk event occurs, it may affect activities with float, absorbing that float without actually pushing the contract completion date beyond the contractual date.

The contractor then claims an EOT on the basis that the employer’s event used up its programming contingency. The employer counters that no EOT is due because the contract completion date has not been affected. The question is which party is right.

The Legal Principle

The SCL Delay and Disruption Protocol (2nd edition, 2017), Core Principle 9, addresses this directly: float is not for the exclusive use of either party. It is available to absorb delay from any cause, whether employer-caused or contractor-caused. If an employer risk event delays an activity that has float, and that delay does not affect the contract completion date, no EOT is due. Only if the delay extends beyond the project completion date does an EOT entitlement arise.

This principle is consistent with the purpose of the EOT clause: to give the contractor relief from liquidated damages liability. If the contract completion date is not delayed, there is no liquidated damages exposure, and therefore no need for an extension of time.

However, there are situations where this analysis may not apply: where the contractor has pre-agreed a completion date earlier than the contract date (contractor’s programme showing early completion), or where the contract provides that the contractor’s programmed float is contractor-owned. Some contracts have been amended to preserve contractor-owned float, but this is not the standard position.

Practical Application

For contractors: programme submissions should not routinely show early completion unless you genuinely plan to complete early and want to capture the float. Showing early completion in your programme means that any employer delay may consume that ‘extra’ float without generating an EOT, even though you had planned to use that float as your own contingency. Be strategic about how much float you show in your programme.

For employers: understand that consumption of float by employer risk events does not automatically generate an EOT entitlement. However, where float is fully consumed and the contract completion date is then delayed by a further employer risk event, the full delay (including the float-consuming period) may need to be reflected in the EOT assessment.

Risks

For contractors: showing excessive early completion in your programme creates float that the employer can absorb without generating your EOT entitlement. For employers: assuming that the contractor’s float is available indefinitely may lead to an underestimate of delay liability when float is exhausted and subsequent employer events do push the completion date.

Mitigation

The programme should be submitted and managed strategically, with clear understanding of float allocation. The SCL Protocol methodology should be applied to delay analysis, and float ownership issues should be identified and addressed in the contract where possible.

Conclusion

Float ownership is a technical but commercially significant issue in delay claims. The default position — that float belongs to the project and can be consumed by any delay event — means that an employer risk event that consumes float without delaying completion does not generate an EOT entitlement. Contractors need to understand this and manage their programme accordingly.