# NEC3 TSC: Under Term Service Contract - Is there Value Engineering within Option C?

**URL:** https://reachback.builtintelligence.com/t/nec3-tsc-under-term-service-contract-is-there-value-engineering-within-option-c/3732
**Category:** General
**Created:** [18 May 2016 07:57 UTC](https://reachback.builtintelligence.com/t/nec3-tsc-under-term-service-contract-is-there-value-engineering-within-option-c/3732 "2016-05-18T07:57:15Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![system](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/system/32/1709_2.png) [@system](https://reachback.builtintelligence.com/u/system)
#### Post date: [18 May 2016 07:57 UTC](https://reachback.builtintelligence.com/t/nec3-tsc-under-term-service-contract-is-there-value-engineering-within-option-c/3732/1 "2016-05-18T07:57:15Z")

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<div class="post-metadata">

### Author: ![dave\_bates](https://dub1.discourse-cdn.com/flex013/user_avatar/reachback.builtintelligence.com/dave_bates/32/55_2.png) [@dave\_bates](https://reachback.builtintelligence.com/u/dave_bates)
#### Post date: [17 July 2016 21:00 UTC](https://reachback.builtintelligence.com/t/nec3-tsc-under-term-service-contract-is-there-value-engineering-within-option-c/3732/2 "2016-07-17T21:00:56Z")

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By Value Engineering I assume you mean a change promoted by the Contractor for the Employer to reconsider his requirements/Service Information to enable a cost saving.

Under Option C, clause 63.11 provides that a compensation event which reduces the Defined Cost will not result in a reduction of the Prices if it is a result of a change which the Contractor proposed and the Service Manager accepted.

Therefore a proposal to change the Service Information (VE) made by the Contractor would not change the Prices and both parties would share the saving under gain share.