NEC3: Supply Contract Guidance Notes

NEC3: Supply Contract Guidance Notes
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The purpose of these guidance notes is to explain the background of the NEC3 Supply Contract, the reasons for its provisions and to provide clear yet comprehensive guidance on how to use it.
Construction Clients' Board endorsement of NEC3
The Construction Clients' Board (formerly Public Sector Clients' Forum) recommends that public sector organisations use the NEC3 contracts when procuring construction.
Standardising use of this comprehensive suite of contracts should help to deliver efficiencies across the public sector and promote behaviours in line with the principles of Achieving Excellence in Construction.

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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 to discuss and obtain a copyright licence.

Chapter 1 
• Introduction 
• Background 
• Purpose of these Guidance Notes 
• NEC Objectives
Chapter 2 
• Introduction to the Supply Contract 
• When should the Supply Contract be used? 
• Application of the Supply Contract 
• Some features of the Supply Contract 
• Key terminology in the Supply Contract 
• Arrangement of the Supply Contract 
• Subcontracts 
• Clause numbering 
• Roles of the parties 
• The Supply Manager 
• The Adjudicator 
• The contract strategy 
• The Options 
• The Price Schedule
Chapter 3 
• Procedure for preparing a Supply Contract 
• Preparing the tender documents 
• Contract Data part one 
• Goods Information 
• Contract Data part two 
• The Price Schedule
• Inviting tenders 
• Preparing a tender 
• Assessing tenders 
• Creating the contract
Chapter 4
• Supply Requirements 
• Introduction 
• Preparing the Supply Requirements
• Preparing Supply Requirements when using Incoterms
Chapter 5 
Explanatory notes on the clauses of the Supply Contract 
• 1 General 
• 2 The Supplier's main responsibilities 
• 3 Time 
• 4 Testing and Defects 
• 5 Payment 
• 6 Compensation events 
• 7 Title 
• 8 Risks, liabilities, indemnities and insurance 
• 9 Termination and dispute resolution 
• Option clauses 
• X1 Price adjustment for inflation 
• X2 Changes in the law 
• X3 Multiple currencies 
• X4 Parent company guarantee 
• X7 Delay damages 
• X12 Partnering 
• X13 Performance bond 
• X14 Advanced payment to the Supplier 
• X17 Low performance damages 
• X20 Key Performance Indicators 
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999 
• Z Additional conditions of contract
• 1 Clause numbering system 
• 2 Sample form of tender 
• 3 Sample form of agreement 
• 4 Use of the SC as a subcontract 
• 5 Price Schedule 
• 6 Contract Data - worked example
Publish Date:
Page Size:
01/04/2013 15:30:12
297 x 210
Number of Pages:
Product Code:
Thomas Telford

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