The NEC4 Term Service Subcontract (TSS) is for appointing a term service subcontractor where the contractor has been appointed under an NEC4 Term Service Contract (TSC) or other NEC4 main contract. It is for appointing a subcontractor over a fixed period to provide an ongoing maintenance, repair or other service for an operational asset, including one-off tasks.
The TSS offers three main payment Options: A (priced subcontract with price list), C (target subcontract with price list) and E (cost-reimbursable subcontract). A different Option from the main contract can be used in each subcontract. The service described in the scope can include individual projects that are instructed and quoted for as tasks, with specific start dates, completion dates and delay damages.
In addition to the main Options, the document contains everything you need to prepare, tender and manage an NEC4 TSS, including all secondary Options and forms for the relevant cost schedules and contract data.
The TSS 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 TSS 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 effectiveness 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 plan, ensures there are no surprises at the end of the contract.
- The Subcontractor’s main responsibilities
- Quality management
- Compensation events
- Use of equipment, Plant and Materials
- Liabilities and insurance
Main Option Clauses
- Option A: Priced subcontract with price list
- Option C: Target subcontract with price list
- Option E: Cost reimbursable subcontract
Resolving and Avoiding Disputes
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 X8: Undertakings to the Client or Others
- Option X10: Information modelling
- Option X11: Termination by the Contractor (not used with Option X19)
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X17: Low service damages
- Option X18: Limitation of liability
- Option X19: Termination by either Party (not used with Option X11)
- Option X20: Key Performance Indicators (not used with Option X12)
- Option X21: Whole life cost
- Option X23: Extending the Subcontract Service Period
- Option X24: The accounting periods
- Option X29: Climate Change
Options X5–X7, X9, X14–X16 and X22 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 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
NEC4 Y Clauses - February 2023
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
Y Ireland Clauses - Y(Ire) Clauses
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