NEC4: Professional Service Contract

The NEC4 Professional Service Contract (PSC) is intended for use in the appointment of a supplier to provide professional services. It can be used for appointing project managers, supervisors, designers, consultants or other suppliers under NEC contracts and can also be used for appointing suppliers on non-NEC construction projects or for non-construction projects. NEC4 contracts help to streamline processes, reduce the potential for problems and promote best practice in procurement of professional services. This document contains the core clauses, the relevant main option clauses, the secondary option clauses and the contract data.

Core Clauses

• 1 General
• 2 The Consultant’s main responsibilities
• 3 Time
• 4 Quality management
• 5 Payment
• 6 Compensation events
• 7 Rights to material
• 8 Liabilities and insurance
• 9 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)

Options X14–X17 and X19 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 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

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