NEC4: Professional Service Contract
The NEC4 Professional Service Contract (PSC) is the main professional service contract in the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement. It is for appointing any provider of professional services, including project managers, service managers, supervisors, designers and other consultants associated with an NEC4 contract.
NEC4 PSC offers three main payment Options: A (priced contract with activity schedule), C (target contract) and E (cost-reimbursable contract). In Option A most of the risk is placed with the service provider, while in Option C it is shared between the client and service provider and in Option E it rests mostly with the client.
In addition to the main Options, the document contains everything you need to prepare, tender and manage an NEC4 PSC contract, including all secondary Options and forms for the cost schedule and contract data.
Background
The NEC4 suite has a global track record for delivering all kinds and sizes of building and infrastructure projects and services on time, on budget and to the highest environmental and quality standards.
As with all NEC4 contracts, the parties to a PSC are required to act in a ‘spirit of mutual trust and co-operation’ and give early warnings of anything that could affect time, cost or usefulness of the service so it can be mitigated without delay.
Change is dealt with by a fast and fair compensation event process which, together with a continually updated and agreed programme, ensures there are no surprises at the end of the contract.
Core Clauses
- General
- The Consultant’s main responsibilities
- Time
- Quality management
- Payment
- Compensation events
- Rights to material
- Liabilities and insurance
- Termination
Main Option Clauses
- Option A: Priced contract with activity schedule
- Option C: Target contract
- Option E: Cost reimbursable contract
Resolving and Avoiding Disputes
- Option W1
- Option W2
Secondary Option Clauses
- Option X1: Price adjustment for inflation (used only with Options A and C)
- Option X2: Changes in the law
- Option X3: Multiple currencies (used only with Option A)
- Option X4: Ultimate holding company guarantee
- Option X5: Sectional Completion
- Option X6: Bonus for early Completion
- Option X7: Delay damages
- Option X8: Undertakings to Others
- Option X9: Transfer of rights
- Option X10: Information modelling
- Option X11: Termination by the Client
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X18: Limitation of liability
- Option X20: Key Performance Indicators (not used with Option X12)
- Option X29: Climate Change
- Option Y(UK)1: Project Bank Account
- Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
- Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999
- Option Z: Additional conditions of contract
- Schedule of Cost Components
- Short Schedule of Cost Components
- Contract Data
- Part one – Data provided by the Client
- Part two – Data provided by the Consultant
- Index
NEC4 Y Clauses - February 2023
Y Northern Ireland Clauses
NEC4 Y Clauses - February 2021
NEC is supporting the use of its contracts in Australia and Ireland by publishing secondary Option Y clauses.
Y Australia Clauses - Y(Aus) Clauses
- NEC4 Y(Aus) - Professional Service Contract
- NEC4 Y(Aus) - Flowcharts for all contracts
- Download all the Y Australia Clauses
Y Ireland Clauses - Y(Ire) Clauses
Users should note that the NEC Forms of Contract are protected by copyright and may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical or photocopying, recording or otherwise, without the prior permission of the copyright owner. However, Contract Data forms may be reproduced for the purpose of obtaining tenders, awarding and administering contracts.
Likewise, plagiarising any copyrighted document is illegal. For users seeking to prepare their own bespoke contracts based on the NEC Forms of Contract, please contact NEC at info@neccontract.com to discuss and obtain a copyright licence.
Paperbound
Product code: L48012-H
ISBN:
9780727762139
ePrint
Product code: L48012-P
ISBN:
9780727762511
eView
Product code: L48012-V
ISBN:
9780727762511