NEC3: Term Service Contract Guidance Notes

NEC3: Term Service Contract Guidance Notes
  • Publish Date: 01/04/2013 11:16:17
  • Publisher: Thomas Telford
  • Page Size: 297 x 210
  • Number of Pages: 96
Description
These guidance notes place the new Term Service Contract into context with the rest of the NEC suite of documents. They then set out the background to the contract, its provisions and guidance on when and how to use it. The procedure for setting up a contract is covered and explanations are given on the meanings of individual clauses. Worked examples are provided of contract data. Finally appendices cover the clause numbering system, sample form of tender, sample form of agreement, use as a subcontract, form of performance bond and price list.
 
ENDORSEMENTS 
 
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.
 
Facilities Management Board support for the NEC3 Term Service Contracts
 
The Facilities Management Board of the Cabinet Office UK recognises that the NEC3 Term Services Contracts support good practice in FM Procurement in the public sector.
 
BIFM supports the NEC3 Term Service Contracts
 
Copyright Policy

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 info@neccontract.com to discuss and obtain a copyright licence.

Formats

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Contents
Chapter 1
• The NEC family of contracts 
• ‘A fundamental review’ 
• The Latham Report 
• Increasing use of the NEC contracts 
• The NEC family of contracts 
• Culture change 
• Have the NEC contracts been successful?
 
Chapter 2
• Key principles of NEC contracts 
• Flexibility 
• Clarity 
• Stimulus to good management
 
Chapter 3
• Introduction to the Term Service Contract 
• Purpose of the guidance notes 
• When should the TSC be used? 
• The contract 
• Subcontracts 
• Clause numbering 
• Roles of the parties 
• The Service Manager 
• The Adjudicator 
• The contract strategy 
• The main Options 
• A Priced contract with price list 
• C Target contract with price list 
• E Cost reimbursable contract 
• The secondary Options 
• W Dispute resolution 
• X1 Price adjustment for inflation 
• X2 Changes in the law 
• X3 Multiple currencies 
• X4 Parent company guarantee 
• X12 Partnering 
• X13 Performance bond 
• X17 Low service damages 
• X18 Limitation of liability 
• X19 Task Order 
• X20 Key Performance Indicators 
• Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996 
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999 
• Z Additional conditions of contract
 
Chapter 4
• Procedure for preparing a Term Service Contract 
• Preparing the tender documents 
• Contract Data part one 
• Service Information 
• Contract Data part two 
• The Price List 
• Inviting tenders 
• Preparing a tender 
• Assessing tenders 
• Creating the contract
 
Chapter 5
• Explanatory notes on the clauses of the Term Service Contract 
• 1 General 
• 2 The Contractor’s main responsibilities 
• 3 Time 
• 4 Testing and Defects 
• 5 Payment 
• 6 Compensation events 
• 7 Use of equipment, Plant and Materials 
• 8 Risks and insurance 
• 9 Termination 
• Option W 
• W1 Dispute resolution 
• W2 Dispute resolution 
• Secondary Option clauses 
• X1 Price adjustment for inflation 
• X2 Changes in the law 
• X3 Multiple currencies 
• X4 Parent company guarantee 
• X12 Partnering 
• X13 Performance bond 
• X17 Low service damages 
• X18 Limitation of liability 
• X19 Task Order 
• X20 Key Performance Indicators 
• Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996 
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999 
• Z Additional conditions of contract
 
Appendices
• 1 Clause numbering system 
• 2 Sample form of tender 
• 3 Sample form of agreement 
• 4 Use of the TSC as a subcontract 
• 5 TSC form of performance bond 
• 6 Price List
 
eLearning for the TSC is now available.

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