NEC4 - Contract Data Part 2 - Payment & Short/Schedule of Cost Components (Term Service Contract)


We are planning on placing several Term Service Subcontracts with our subcontractors and I have a few queries on the following parts of the Contract Data Part 2:-

  1. Payment- What is the ‘price list’ and the ‘tendered total of the prices’.

Short/Schedule of Cost Components- Would this just be the net agreed cost of people and equipment rates (i.e. before the subcontractors fee is added on). Are the people costs for people outside the working/service area?

We intend to use the TSC as an overarching contract and then call off works against it, so with regards to the above could we leave the Short/Schedule of Cost Components blank and then refer the ‘price list’ to an agreed addendum of prices with our subcontractors?

Kind Regards,


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@Neil_Earnshaw - can you help with this please?

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@TheGaz1982 the Price List is a document that you or your Subcontractors compile, it can include rates or lump sum prices or a combination of both. It is defined at clause 11.2(12) but how it is used depends on which main Option you choose. In Option A the Price List is used for both pricing and payment however in Option C it is only used for pricing as payment is based on Defined Cost plus Fee.

The tendered total of the Prices would be the number in the bottom right hand corner of the Price List submitted with the Subcontractor’s tender.

You are right that Fee is added to costs in the Schedules of Cost Components however the schedules provide detailed rules for how Defined Cost is assessed. You cannot simply leave the entries in Contract Data part two blank as this creates uncertainty. The Schedule of Cost Components is used to assess payments and compensation events in Option C however in Option A the Short Schedule of Cost Components is only used to assess compensation events.