NEC4: Professional Service Subcontract

The NEC4 Professional Service Subcontract (PSS) is for appointing any provider of professional services as a subcontractor, either to a consultant engaged under an NEC4 Professional Service Contract (PSC) or to a contractor engaged under another NEC4 main contract.

NEC4 PSS offers three main payment Options: A (priced contract with activity schedule), C (target contract) and E (cost-reimbursable contract). A different Option from the main contract can be used in each subcontract.

In addition to the main Options, the document contains everything you need to prepare, tender and manage an NEC4 PSS contract, including all secondary Options and forms for the cost schedule and contract data.

For more information, you can check out this webinar hosted by NEC experts Richard Patterson and Barry Trebes:
 

Background

The PSS is part of the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement. The suite has a global track record for delivering all kinds and sizes of building and infrastructure projects and services on time, on budget and to the highest environmental and quality standards.

As with all NEC4 contracts, the parties to a PSS are required to act in a ‘spirit of mutual trust and co-operation’ and give early warnings of anything that could affect time, cost or usefulness of the service so it can be mitigated without delay.

Change is dealt with by a fast and fair compensation event process which, together with a continually updated and agreed programme, ensures there are no surprises at the end of the contract.

Core Clauses

1. General
2. The Subcontractor’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 subcontract with activity schedule
• Option C: Target subcontract
• Option E: Cost reimbursable subcontract

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 Contractor
• 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)
• Option X29: Climate Change

• Option Z: Additional conditions of subcontract

• Schedule of Cost Components
• Short Schedule of Cost Components
• Subcontract Data
  • Part one – Data provided by the Contractor
  • Part two – Data provided by the Subcontractor
• Index

NEC4 Y Clauses - February 2023

Y Northern Ireland Clauses

• NEC4 Y(NI) - Professional Service Subcontract
• Download all the Y Northern Ireland Clauses

NEC4 Y Clauses - February 2021

NEC is supporting the use of its contracts in Australia and Ireland by publishing secondary Option Y clauses.

Y Australia Clauses - Y(Aus) Clauses

• NEC4 Y(Aus) - Professional Services Subcontract
• NEC4 Y(Aus) - Flowcharts for all contracts
• Download all the Y Australia Clauses

Y Ireland Clauses - Y(Ire) Clauses

• NEC4 Y(Ire) - Professional Services Subcontract
• NEC4 Y(Ire) - Flowcharts for all contracts
• Download all the Y Ireland Clauses

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.

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Product code: L48022-H
ISBN: 9780727763433

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