Plain English Explanation
X6 provides a financial incentive for the Contractor to complete the works (or sections under X5) earlier than the Completion date. If the PM certifies Completion before the Completion date, the Contractor is paid a bonus — a rate per day of early Completion stated in the Contract Data.
X6 is used where early completion has genuine commercial value to the Client — for example, on revenue-generating facilities (hotels, retail, manufacturing), on public infrastructure where delays have reputational impact, or on projects with seasonal constraints.
X6 should only be included where early completion is genuinely achievable and where the Client has resources and processes ready to accept early handover. Poorly structured early completion bonuses can create perverse incentives or disputes about what 'Completion' means.
Key Takeaway
If X6 is in the main contract, push for it in your subcontract — if your early performance enables the main contractor to earn a bonus, you should share in that commercial outcome.
What This Means for Subcontractors
If X6 is in the main contract, push for an equivalent bonus in your subcontract. If the main contractor earns an early Completion bonus partly due to your performance, you should share in it. Ensure the bonus rate in your subcontract is fair relative to the main contract bonus and that the Completion date in your subcontract is set to allow early delivery.
Common Risks & Disputes
- 1Early Completion bonus not flowing down to subcontractors who actually enabled the early completion
- 2The definition of 'Completion' being disputed — the Client may find outstanding items to avoid paying the bonus
- 3X6 creating programme pressure that leads to quality issues
- 4Bonus rates being set too low to provide a genuine commercial incentive
- 5Early completion by one subcontractor creating programme pressure for others who then face delay damage exposure
Sources
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