NEC4: Supply Contract Flow Charts
These flow charts depict the procudures followed when using the NEC4 Supply Contract (SC). They are intended to help people using the SC to see how the various SC core clauses and Options come together to produce clear and precise sequences of action for the people involved.
14 The Supply Manager 6
15 Early warning 7
16 Supplier’s proposals 8
17 Requirements for instructions Sheets 1 and 2 9
18 Corrupt Acts 11
19 Prevention 12
20 Providing the Goods and Services 13
21 The Supplier’s design 14
22 Using the Supplier’s design and services 15
23 Working with the Purchaser and Others 16
24 Subcontracting 17
25 Other responsibilities Sheets 1 and 2 18
26 Assignment 20
29 Disclosure 21
30 Starting and Delivery 22
31 The programme Sheets 1 and 2 23
32 Revising the programme 25
33 Access 26
34 Instructions to stop or not to start work 27
35 Acceleration 28
40 Quality management system 29
41 Tests and inspections Sheets 1 and 2 30
42 Testing and inspection before Delivery 32
43 Searching for and notifying Defects 33
44 Correcting Defects 34
45 Accepting Defects 35
46 Uncorrected Defects 36
50 Assessing the amount due Sheets 1 to 4 37
51 Payment Sheets 1 and 2 41
52 Defined Cost 43
53 Final assessment Sheets 1 and 2 44
iv Flow Charts for the Supply Contract neccontract.com © nec 2017
CONTENTS
60 Compensation events Sheets 1 to 6 46
61 Notifying compensation events Sheets 1 to 4 52
62 Quotations for compensation events Sheets 1 and 2 56
63 Assessing compensation events Sheets 1 and 2 58
64 The Supply Manager’s assessments Sheets 1 and 2 60
65 Proposed instructions 62
66 Implementing compensation events 63
70 The Purchaser’s title to the goods 64
71 Marking goods before Delivery 65
72 The Supplier’s use of material 66
80 Purchaser’s liabilities Sheets 1 to 3 67
81 Supplier’s liabilities 70
82 Recovery of costs 71
83 Insurance cover 72
84 Insurance policies 73
85 If the Supplier does not insure 74
86 Insurance by the Purchaser 75
90 Termination 76
91 Reasons for termination Sheets 1 to 5 77
92 Procedures on termination 82
93 Payment on termination 83
94 Resolving and Avoiding Disputes Sheets 1 to 5 84
X1 Price adjustment for inflation 89
X2 Changes in the law 90
X3 Multiple currencies 91
X4 Ultimate holding company guarantee 92
X7 Delay damages 93
X10 Information modelling 94
X11 Termination by the Purchaser 95
X12 Multiparty Collaboration (not used with X20) Sheets 1 to 3 96
X13 Performance bond 99
X14 Advanced payment to the Supplier 100
X17 Low performance damages 101
X18 Limitation of liability 102
X20 Key Performance Indicators 103
(not used with Option X12)
X21 Whole life cost 104
X25 Supplier warranties 105
Y(UK)1 Project Bank Account 106
Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
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