We have an NEC Professional Services Contract on Option A Fixed (less than £100K) to do evaluation testing/studies for a further demolition contract. To enable the company to do trials we need to Purchase some ad hoc pieces of equipment for them which would mean we would need to place 6 small orders to the value of Circa £16k . It would therefore seem sensible to get the existing consultant to procure them on our behalf. My question is “would the PSC cover us to do this on a compensation event or can we amend the contract to accommodate this”?
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We have an NEC Professional Services Contract on Option A Fixed (less than £100K) to do evaluation testing/studies for a further demolition contract. To enable the company to do trials we need to Purchase some ad hoc pieces of equipment for them which would mean we would need to place 6 small orders to the value of Circa £16k . It would therefore seem sensible to get the existing consultant to procure them on our behalf. My question is “would the PSC cover us to do this on a compensation event or can we amend the contract to accommodate this”?
If your answer is the comment, then if the consultant is arranging the purchases on your behalf, it may be suitable, but you need to add what is to be bought on what the consultant is to do in the Scope. However, the actual purchase would be between you, as the Employer, and the Supplier. The purchase could be on the Supply Contract.
yes seems taht way
You’ll need to consider how the contract provisions differ between PSC/SC options mentioned by Jon. It not uncommon for there to be elements of physical works or supply items included in PSC or TSC type contracts, because a purchase straddles contract types, but the list of compensation events, payment and insurance provisions are different between PSC and Supply contract for a reason. You will probably need a variation to the contract to incorprate this change into a PSC contract, because of the payment provisions. CE are generally valued as staff rates unless the equipemnt was set out at the start in price list. If you can live with the diifferences in the CEs and insurance provisions i’d suggest you soften the risks/liabilities by include some additional constraints within the PSC scope. Areas to watch out for include title of materials/equipement (particularly vesting of materials paid for off site/before delivery), factory/product testing, product insurance/warranty, physical risks around delivery, installation and storage on site. The PSC by its natures doesn’t cover these point in any depth. When add additional requirements in to the scope, you will need to make sure you stay within the bounds on the existing clauses within the PSC or you will need to draft a z clause or consider a seperate supply contract.