On a practical basis, I would say that you you should be showing as an activity/milestone the "Key Date (Completion)", but a second milestone showing "planned Key Date (Completion)". This then allows you to show the two milestones as to what the Key Date is and when you plan to finish in relation to that date. The fact you are showing that you are planning to finish that Key Date late is NOT actually a reason to reject the programme - and indeed would be a bit ridiculous if that is the true reality and there is nothing they can do. There is however remedy against the Contractor if they miss the Key Date, as any cost incurred by the Employer will be charged to the Contractor (clause 25.3). If a Key Date is missed/will be missed due to a reason that is not the Contractors fault - then this can be assessed as a compensation event which in turn will (by agreement) move the Key Date.
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