NEC4: Term Service Contract
The NEC4 Term Service Contract (TSC) is the main term service contract in the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement. It is for appointing a contractor over a fixed period to provide an ongoing maintenance, repair or other service on an operational asset, including one-off tasks.
The TSC offers three main payment Options: A (priced contract with price list), C (target contract with price list) 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. The service described in the scope can include individual projects that are instructed and quoted for as tasks, with specific start dates, completion dates and delay damages.
In addition to the main Options, the document contains everything you need to prepare, tender and manage an NEC4 TSC, including all secondary Options and forms for the relevant cost schedules 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 TSC 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 effectiveness 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 plan, ensures there are no surprises at the end of the contract.
Core Clauses
- General
- The Contractor’s main responsibilities
- Time
- Quality management
- Payment
- Compensation events
- Use of equipment, Plant and Materials
- Liabilities and insurance
- Termination
Main Option Clauses
- Option A: Priced contract with price list
- Option C: Target contract with price list
- 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 X8: Undertakings to the Client or Others
- Option X10: Information modelling
- Option X11: Termination by the Client (not used with Option X19)
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X17: Low service damages
- Option X18: Limitation of liability
- Option X19: Termination by either Party (not used with Option X11)
- Option X20: Key Performance Indicators (not used with Option X12)
- Option X21: Whole life cost
- Option X23: Extending the Service Period
- Option X24: The accounting periods
- Option X29: Climate Change
Options X5–X7, X9, X14–X16 and X22 are not used.
- 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 subcontract
- Schedule of Cost Components
- Short Schedule of Cost Components
- Subcontract Data
- Part one – Data provided by the Contractor
- Part two – Data provided by the Subcontractor
- 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) - Term 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: L48014-H
ISBN:
9780727762153
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Product code: L48014-P
ISBN:
9780727762535
eView
Product code: L48014-V
ISBN:
9780727762535