NEC4: Managing a Term Service Contract

This document will provide guidance on the contract management for a Term Service Contract (TSC). Chapter 1 Introduction Term service subcontract (TSS)   Chapter 2 Core and main Option clauses 1 General 2 The Contractor’s main responsibilities 3 Time 4 Quality management 5 Payment 6 Compensation events 7 Use of equipment, Plant and Materials 8 Liabilities and insurance 9 Termination   Chapter 3 Clauses for resolving and avoiding disputes   Chapter 4 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 Option X12: Multiparty collaboration (not used with Option X20) Option X13: Performance bond Option X17: Low service damages Option X18: Limitation of liability X18 Option X19: Termination by either party (not used with 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 Y(UK)1: Project Bank Account Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996 Option Y(UK)3: The Contract (Rights of Third Parties) Act 1999 Chapter 5 Schedule of Cost Components (SCC)   Chapter 6 Short Schedule of Cost Components (SSCC)   Appendix 1 Contract start-up checklist   Appendix 2 Contract close-down checklist   Appendix 3 Example communication forms   Appendix 4 Example joint compensation event tracking schedule   Appendix 5 Example quotation of a compensation event