NEC X6 pays the Contractor a daily bonus for each day it finishes ahead of the Completion Date. The bonus runs from the earlier of Completion and the Client taking over the works, up to the Completion Date, at the rate in the Contract Data.
It has a single clause, X6.1, in both NEC3 and NEC4. It's a reward, not a right to finish early: the Client is not obliged to take over the works early, and the Contract Data says whether it's willing to. X6 is the mirror of Option X7 delay damages, and both appear among the NEC secondary Options.
When a bonus is worth it
A bonus makes sense when an early finish is worth real money to the Client, such as earlier revenue, reduced disruption or an avoided temporary facility. If an earlier finish wouldn't help because a tenant won't arrive until a fixed date, a bonus gives away money for nothing.
| Question | If yes | If no |
|---|---|---|
| Can the Client actually use the works earlier? | X6 could pay for itself | Leave it out |
| Is the Client ready to take over early? | Confirm this in the Contract Data | Expect a dispute over the date on which the bonus begins |
| Is there budget for the bonus? | Set aside the maximum likely figure | Set a low rate or consider a cap by a Z clause |
A worked example
A fictional retail park with illustrative figures. The Completion Date is 30 June, and the bonus is £2,000 a day. The Supervisor's tests pass and the Project Manager certifies Completion on 22 June, eight days early.
- Bonus: 8 days x £2,000 = £16,000.
- If a compensation event had moved the Completion Date to 7 July before that point, the same finish on 22 June would earn 15 days, or £30,000.
The second point is the one to notice. An implemented compensation event moves the Completion Date, and the bonus counts from the revised date. A Project Manager who is slow to deal with a compensation event may leave a bonus uncertain, because its value depends on the outcome of that assessment.
How it interacts with other clauses
- Acceleration. A Project Manager can instruct a quotation for acceleration, and the Contractor doesn't have to agree. If an accepted acceleration brings the Completion Date forward, the bonus counts from the new, earlier date. Be clear about that in the quotation. See the Completion Date.
- Sections. With Option X5, each section can have its own bonus rate.
- Taking over. Bonus runs from the earlier of Completion and take over. A Client that moves in early, before Completion, can therefore start the bonus running even if work remains.
- Completion needs certifying. Completion depends on the Scope's requirements. A snag that stops the Client using the works, or missing records the Scope calls for, can delay it and cost bonus days. Check the definition in what Completion means under NEC.
What goes wrong
- Treating X6 as guaranteed income. Don't build it into your margin. It depends on finishing early and on how you and the Project Manager have managed the Completion Date.
- A rate that doesn't match the benefit. The rate is a matter for the Client. If it's too low it won't change behaviour; if it's too high it may push the team into risky resequencing.
- Quality pressure. Any incentive to finish early creates pressure at handover. Define what's needed for Completion clearly in the Scope.
- Option C overlap. On a target contract, a Contractor already has a share of any saving. A bonus adds a separate reward for time, and it isn't part of the Defined Cost that drives the share. Keep them apart in commercial reports.
In a subcontract, the bonus depends on the Subcontract Completion Date and the rate in the Subcontract Data. A subcontractor finishing early doesn't earn its main contractor a bonus unless the main contract also benefits.
Related guides
- NEC Secondary Options: X, Y, W and Z Clauses Explained
- X7: Delay Damages
- X8: Undertakings to the Client or Others
- X9: Transfer of Rights
- X4: Ultimate Holding Company Guarantee
- X5: Sectional Completion
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.