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X5

Sectional completion

Reviewed by LazyQS Editorial·Last reviewed: 2026-02-19

Plain English Explanation

X5 allows the contract to be divided into sections, each with its own Completion date, defects correction period, and associated delay damages. Without X5, the NEC contract has a single Completion date for the whole of the works. X5 enables phased handover and completion.

Each section is defined in the Contract Data with its own start date, Completion date, and (if X7 also applies) its own rate of delay damages. Compensation events are assessed against their impact on each affected section separately.

X5 is essential on phased fit-out projects, multi-building developments, highway improvement schemes with lane sections, or any project where the Client needs to take handover in stages.

Key Takeaway

Each section under X5 carries its own delay damage exposure — if X7 also applies, a project with five sections can simultaneously expose you to five separate delay damage accruals, so protect each section's programme through prompt CE notification.

What This Means for Subcontractors

If the main contract has sectional completion under X5, your subcontract should reflect this. Ensure the section boundaries, Completion dates, and any associated delay damages for each section are clearly stated in your subcontract. Failing to align your subcontract programme with the main contract sections creates cashflow and claims risk.

Common Risks & Disputes

  • 1Sectional boundaries not being clearly defined, leading to disputes about what is included in each section
  • 2Delay damages being levied on individual sections creating a higher aggregate liability than under a single Completion date
  • 3CE assessments becoming complex where a CE affects multiple sections
  • 4Subcontract sections not aligning with main contract sections, creating gaps in the pass-down of obligations
  • 5Completion of one section being disputed while other sections are still in progress

Sources

  1. NEC4 ECC Secondary Option X5— NEC4 ECC
  2. RICS Guidance Note: Sectional Completion and Delay Damages Under NEC4— RICS
  3. ICE Guidance: Sectional Completion and Phased Handover Under NEC4— ICE

Related Clauses

X7

Delay damages

Delay damages — X5 sections each carry their own X7 delay damage rate

X6

Bonus for early Completion

Early Completion bonus — X6 can apply per section in the same way as X7

Continue Learning

Category Overview

Back to X Clauses (Secondary Options)

Adjacent Clauses

X4 Parent company guaranteeX6 Bonus for early Completion

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