NEC4: Facilities Management Contract

The NEC4 Facilities Management Contract (FMC) is intended to be used for the appointment of a service provider for a period of time to manage and provide a facility management service. The NEC4 suite of contracts helps to streamline processes, reduce the potential for problems and promotes the best practice in the procurement of facilities management services.

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Contents
Core Clauses 

• 1 General 

• 2 The Service Provider’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: Performance guarantee 

• Option X8: Undertakings to the Client or Others 

• Option X9: Transfer of rights (only used with Option X15) 

• Option X10: Information modelling 

• Option X11: Termination by the Client (not used with Option X19) 

• Option X12: Multiparty collaboration 

• Option X18: Limitation of liability 

• Option X19: Termination by either Party (not used with Option X11) 

• Option X21: Whole life cost 

• Option X23: Extending the Service Period 

• Option X24: The accounting periods 

• Option X27: Project Orders 

• Option X28: Change of Control


• ​Options X5–X7, X13–X14, X16–X17, X20, X22 and X25–X26 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 

• Subcontract Data 

• Part one – Data provided by the Client 

• Part two – Data provided by the Service Provider 

• Index