NEC4 Term Service Contract

The Term Service Contract (TSC) is intended to be used for the appointment of a supplier for a period of time to manage and provide a service. The NEC4 suite of contracts help in streamlining processes, reduces the potential for problems and promotes best practice in the procurement of services.

This document contains the core clauses, the three main option clauses, secondary option clauses and contract data forms.

Core 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

 
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
• 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

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