NEC3: Term Service Contract (TSC)

NEC3: Term Service Contract (TSC)
  • Publish Date: 01/04/2013 11:42:02
  • Publisher: Thomas Telford
  • Page Size: 297 x 210
  • Number of Pages: 72
The Term Service Contract is an entirely new NEC document and is intended to be used for the appointment of a supplier for a period of time to manage and provide a service.  This document contains the core clauses, the three main option clauses, secondary option clauses and contract data forms.
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 to discuss and obtain a copyright licence.



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Core clauses 
• 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
Main option clauses 
• A  Priced contract with Price List 
• C  Target contract with Price List 
• E  Cost reimbursable contract
Dispute resolution 
• Option W1 
• Option W2
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 
• X18   Limitation of liability 
• X19   Providing the Service by Task Order 
• X20  Key Performance Indicators
• Options Y Compliance with national legislation
• 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 subcontract
Note Options X15 to X11, X14 to X17 and Y(UK)1 are not used
Price List 
Contract Data 
eLearning for the TSC is now available.

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