NEC4: Term Service Contract


The NEC4 Term Service Contract (TSC) is intended to be used for the appointment of a supplier for a period of time to manage and provide a service. The NEC4 suite of contracts helps to streamline processes, reduce the potential for problems and promotes the best practice in the procurement of services.

The NEC4 Term Service Short Contract is also available for more straight-forward projects, alongside support documents, including guidance notes and flow charts, which have been written to help users improve both the setting up and management of the Term Service Contract.

Aims & Objectives:

At the end of the course, participants should be able to: -

  • Appreciate the philosophy and content of the NEC4 family of documents
  • Understand the more important clauses of the NEC4 Term Service Contract
  • Understand the roles and responsibilities of the key parties
  • Be able to support management of an NEC4 Term Service Contract

Course Outline:

Session 1                   Brief Overview of the NEC4 family

  • Engineering and Construction Contract and Subcontract
  • Engineering and Construction Short Contract and Subcontract
  • Professional Service Contract and Subcontract
  • Term Service Contract and Subcontract
  • Term Service Short Contract
  • Design Build and Operate Contract
  • Supply Contract
  • Supply Short Contract
  • Dispute Resolution Service Contract
  • Framework Contract

The NEC4 Term Service Contract

Session 2                      Principles of Term Service Contracts

Session 3                      The Roles of the Parties

Session 4                      General Provisions and Contractor’s Main Responsibilities

Session 5                      Time and Programme

Session 6                      Quality Management

Session 7                      Payment and the Schedules of Cost Components

Session 8                      Compensation Events

Session 9                      Use of equipment, Plant and Materials, Liabilities and Insurance

Session 10                    Termination, Dispute Avoidance and Resolution

Session 11                    Preparing tenders

Practical Workshop       Applying the contract in the workplace. Hands on activity to address delegate priorities.

Mode of Delivery:

The course is delivered through a mix of briefing lectures and classroom discussion and hands on debate of approaches to workplace situations.  Each delegate is asked to prepare a plan which considers how the delegate will apply the contract and learning from this course in the workplace.

Intended For:

This 1 day course is for Clients, Contractors, Consultants and Service Managers who are new to the NEC4 contracts, with little or no experience of using these, and who wish to understand the main elements of the NEC4 contracts.