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