Introduction to the NEC4 Term Service Contract (TSC)

Introduction to the NEC4 Term Service Contract (TSC)
A comprehensive overview of the NEC4 Term Service Contract (TSC), breaking down its key components for new users.

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Background

The NEC4 Term Service Contract (TSC) has been developed for the appointment of a Contractor for a period of time to manage and provide a service. It provides a modern method for clients, contractors and service managers to work collaboratively to consistently achieve their objectives.

People will be motivated to play their part in collaborative management if it is in their commercial and professional interest to do so. Uncertainty about what is to be done and the corresponding risks and liabilities can lead to disputes and confrontation.

The TSC clearly allocates risks, and the collaborative approach will reduce those risks and uncertainty for all the parties.

Why Attend?

Delegates attending this course will:

  • Gain an insight into when to use this form of contract
  • Learn how to put the contract together, the contract strategy
  • Learn how the contract is managed effectively

This one day training course starts at 09:00 and finishes at 17:00 with refreshment breaks mid-morning and afternoon, plus lunch. All timings, except the start time, are approximate and may be adjusted to suit natural breaks in the lesson.

Session 1 - Overview of the NEC and the Term Service Contract (TSC)

  • This session will show how NEC contracts have helped transform industry behaviours and how TSC works alongside other contracts in the suite.
  • It will also cover when the TSC should be used, and its relationship to its sub contract (Term Service Subcontract, TSS) and the Term service Short Contract (TSSC).

Session 2 - Using the TSC

  • This session covers the contract strategy; an explanation of the main and secondary Options that can be chosen and the other contract documents that need to be produced. It will also outline the difference between defined and identified terms, their significance in the contract and the contract data and how they should be used.

Session 3 - Managing the contract - the TSC processes

  • 3.1 - General provisions. This session will look at the general techniques that are used to manage the contract including mutual trust and co-operation, communications, the role of the Service Manager and Contractor and early warnings.
  • 3.2 - Contractor's main responsibilities. This session outlines the Contractor’s main responsibilities cover how the works are defined, the Contractor’s design, key people, Key Dates and subcontracting.
  • 3.3 - Time. This session looks at Tasks and the Task programme. It also considers when the service starts and finishes, the importance of the plan and how the accepted plan and programme is used and revised to manage delivery.
  • 3.4 - Quality management. This session clarifies how defective work is identified and managed throughout the programme and after completion.
  • 3.5 - Payment. This session covers how amounts for payments are calculated and how handling costs can vary with the main Options. It includes when payments should be made as well as disallowed costs and the schedules of cost components.
  • 3.6 - Compensation events. This session gives an overview of what compensation events are and how they should be managed to ensure neutral cost to the Contractor and transparency and fairness to the Client.
  • 3.7 - Use of equipment, Plant and Materials. This section will review how title for equipment, Plant and Materials passes between parties and the relevance of Service Areas.
  • 3.8 - Liabilities and insurance. This session looks at the way TSC manages liabilities and maintains a risk profile which complies with the overarching NEC principle of mutual trust.
  • 3.9 - Termination. This session deals with the process of termination and the reasons why the termination process can be invoked.

Session 4 - Summary and Open Forum

The eLearning follows the same structure as the one day tutor-led course, distilling the key information into approximately two hours of content.

Module 1 - Overview of the NEC4 Suite

  • This module will show how NEC contracts have helped transform industry behaviours and how the TSC works alongside other contracts in the suite. It will also cover when the TSC should be used, and its relationship to its sub contract (Term Service Subcontract, TSS) and the Term Service Short Contract (TSSC).

Module 2 - Using the TSC, the contract strategy

  • This module covers the contract strategy; an explanation of the main and secondary Options that can be chosen and the other contract documents that need to be produced.

Module 3 - Managing the contract, the TSC terms and processes

  • This module is broken into nine subsections, each covering one of the key aspects of the TSC contract: General Provisions, the Contractor's main responsibilities, Time, Quality, Payment, Compensation Events, Title, Liabilities and insurance, and Termination and dispute resolution.

Module 4 - Summary

  • The final module provides a recap of the course's learning objectives, as well as guidance on possible next steps upon completion of the course and accompanying test.

Duration

Approximately 90-120 minutes.

The length of time taken varies depending on how quickly individuals study and absorb the material.

Please note that the licence is valid for 6 months only from date of purchase.

Successful completion of this course will award you 30 credit points toward your Online Academy qualification.

This course is designed for those working with the TSC form, including:

  • Service managers
  • Clients
  • Consultants
  • Contractors and their supply chain.

It is designed for those with minimal experience with NEC Contracts or the TSC form but can be beneficial to those wishing to recap their knowledge.

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