I’m interested in understanding more about the Option G form of contract:
- What adv does this form have over others (for the Employer)?
- What disadv does this form have over others (for the Employer)?
- In what situation would you recommend an Option G Main Clause?
If I understand correctly, the Employer provides a Task Schedule to which the Consultant offers a lump sum against each Task. When under contract, the Employer instructs the Consultant to undertake a Task, by issuing a Task Order. From what I can work out the only difference between this and an Option A is that the Employer retains some control as to the work that is being undertaken through the contract.
I can’t see there being any difference between the two options in the control available to the Employer.
Option A would appear to me to be suited to a service for single specific project where the overall scope can be clearly defined and Option G would appear to be suited to potential services on a programme of potential projects where the scope of individual service sub-elements can be clearly defined but the number of each isn’t known.
An Option A example might be the engagement of an architect by an Employer for the design and project management of the construction of a building.
An Option G example might be the engagement of an architect by a developer for a range of potential design and project management services as and when development opportunities arise during the term, where some don’t proceed beyond outline proposals, planning or don’t make it to site.
Option G of the PSC is for use when the Employer can define the type of services they require, but not the quantity. As you rightly describe the Employer provides a Task Schedule that the Consultant prices. As and when the Employer wants to call-off some of the service, they issue a Task Order.
The main benefit of Option G is that it enables the Employer to enter into a binding contract that gives price certainty for the defined services. It’s similar to a framework contract in terms of how it operates. I wouldn’t recommend Option G is used for calling-off services that are of high value or complexity as the Task Order procedures are quite simple. If the services require more sophisticated management then a framework contract with a call-off mechanism that uses Options A, C or E would be more appropriate.
Would you recommend the use of NEC Option G in a multi-supplier framework?
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@ProcurementPro which contracts / main options you choose should be driven by the complexity / value of the service. Yes, you could technically have a framework set-up with multiple suppliers using Option G but you would also need to include Z clauses to define how the call-off would be initiated and awarded between the supplies. You’d need to consider this whether you use the PSC or FWC, it’s just that in the FWC you’d put this information in the selection and call-off procedures. Remember PSC is a service contract but FWC could be used for works, services and / or supplies.
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