NEC TSC: Which NEC3 Option for Firm Price and KPIs linked to variable management fee (profit)

NEC3 and NEC4 Contracts
#1

I have an existing FM (hard) contract that needs to be tendered under TSC NEC3. Currently it is under a non NEC3 bespoke contract. My question is which NEC3 pricing option(s) if any can I use which can provide for the following:

  • Firm Price subject to indexation for core services which includes an inclusive repair limit
  • Management Fee with variable element subject to KPI service performance
  • Separate schedule of rates for additional / call off work such as small works not included in core services
#2

The TSC has three main options:
1 a priced contract (Option A),
2 a target contract (Option C) and
3 a cost reimbursable contract (Option E)

Given that your starting point is wanting a firm price you are going to be following the Option A route. You can then add by way of Z clause any necessary modification to give the incentivised management fee. The minor works costs can be set out in the Price List