Which NEC4 Contract Should I Use?

Your guide to selecting the right NEC contract for your project.

Which NEC Contract Should I Use?

For construction and engineering work, use NEC4 ECC (Engineering and Construction Contract).
For professional services, like design or consultancy, use NEC4 PSC (Profressional Services Contract).
For ongoing maintenance and services, use NEC4 TSC (Term Service Contract).
For supply of goods, use NEC4 SC (Supply Contract).
For major multi-party programmes, use NEC4 ALC (Alliance Contract).

Each contract has "short" versions (ECSC, PSSC, etc) for simpler, lower-value, lower-risk projects. Selection depends on what your're procuring, complexity, risk level and project value.

Find the Right Contract for Your Project

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All NEC4 Contracts at a Glance

Contract	Use For	Typical Value	Complexity
NEC4 ECC	Building, infrastructure, process plants, any design level	£10k - £10bn+	Medium-High
NEC4 ECSC	Simple construction, well-defined scope	£1k - £500k	Low
NEC4 PSC	Design, consultancy, advisory, PM	£5k - £5m+	Medium
NEC4 TSC	Ongoing maintance, asset management	£50k - £50m+/year	Medium
NEC4 FMC	Cleaning, catering, security, maintenance	£25k - £25m+/year	Medium
NEC4 SC	High-value goods: transformers, rolling stock	£100k - £100m+	Medium-High
NEC4 ALC	Major programmes, multi-party, integrated delivery	£50m - £10bn+	Very High
NEC4 DBOC	Projects extending into operational phase	£10m - £1bn+	High

Key Decision Factors

Project Value Guidelines

£1k - £10k: Consider short contracts (ECSC, PSSC, SSC).
£10k - £1m: Short or Main contracts depending on complexity.
£1m+: Main contracts (ECC, PSC, TSC, SC).
£50m+: Consider Alliance Contract for multi-party programmes.

Complexity Assessment

Simple, well-defined scope: Short Contracts.
Complex or uncertain scope: Main contracts with target cost options.
Multi-party integration needed: Alliance Contract.

Common Project Scenarios

"Building a new office block"

Recommended: NEC4 ECC Option A or ECC Option B.
Why: Defined building work, traditional procurement suitable.

"5-year highways maintenance"

Recommended: NEC4 TSC.
Why: Ongoing service over defined term, recurring work.

"Hospital facilities management"

Recommended: NEC4 FMC.
Why: Facilities services, service-level based.

"Appointing a design consultant"

Recommended: NEC4 PSC.
Why: Professional services, design work, fee-based relationship.

"Major infrastructure (£500m+)"

Recommended: NEC4 ECC Option C, ECC Option D or ALC.
Why: Complex, collaborative approach with pain/gain share.

"Small refurbishment (£50k)"

Recommended: NEC4 ECSC.
Why: Lower value, simple scope, streamlined admin.

NEC4 Payment Options (A-F)

Main contracts offer different payment mechanisms to suit project risk.

Option	Payment Method	Best For
Option A	Priced with activity schedule	Well-defined scope, low uncertainty
Option B	Priced with bills of quantity	Scope defined but quantities uncertain
Option C	Target cost with pain/gain share	Complex projects, collaboration needed
Option D	Target cost + bill of quantities	Complex projects with quantity uncertainty
Option E	Cost reimbursable	Emergency work, highly uncertain scope
Option F	Management contract	Very large programmes

Frequently Asked Questions

What's the difference between ECC and ECSC?

NEC4 ECC is the main contract for any size project with payment options A-F, NEC4 ECSC is the short contract for simpler projects (typically <£500k) with streamlined processes and fixed price only.

When should I use short contracts?

Use short contracts when (1) scope is simple and well-defined, (2) value is lower (under £500k guideline), (3) risk is low, (4) parties are experienced with NEC, and (5) simpler administration is preferred.

Which option (A-F) should I choose?

Choose based on risk: Options A/B for fixed price with defined scope; Options C/D for collaborative target cost; Option E for uncertain/emergency work; Option F for management contracts.

Can I use NEC for small projects under £10,000?

Yes, NEC4 short contracts (ECSC, PSSC, SSC) can be used for projects from £1,000 upwards. The contracts scale to suit the project size.

Which NEC Contract Should I Use?