Hi,
I am currently working on a framework where we use several subcontractors across various projects on the framework, and each time the subcontractor is issued with a new contract- such as an NEC3 ECC short subcontract.
I am looking to put an NEC4 subcontract in place for each subcontractor, which could be used as on ‘overarching’ contract that we could issue work on the back of, without having multiple subcontracts- i.e. issue each project as a Compensation Event to the overarching subcontract.
Would an NEC4 Term Service Contract be the way to go, or are there other more suitable contracts?
Note- the subcontractors that we deal with are not really contractual, so it needs to be something relatively simple.
Thanks,
Gareth.
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Hi,
Yes, NEC4 TSC could be utilised, but there is an NEC4 Framework Contract which you could use the overarching contract for all of your subcontractors (as a group or individually) then define each “The Data which will apply to all Work Orders is …” as say an NEC4 ECS or whatever form of contract you wish - it can be whatever you decide. If this approach is too complex, then simply utilise an NEC4 ECS/TSS/ECSC which are the short/sub versions.
Hope this helps.
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Hi,
Thank you for your response and information provided.
So for relatively simplistic works, which one do you think would work the best? We are looking at doing this for subcontractors who provide a ‘professional services’ as well as for those who provide a construction service (minor construction / fit-out work).
Any further advise would be appreciated.
Kind Regards,
Gareth.
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Well, you have many options. If you wanted to keep it all as simple as possible then perhaps use the NEC4 Professional Service Short Contract for any time-charges, and NEC4 Term Services Short Contract (TSSC) for works to be carried out under Task Orders. Being the short versions, these are about as simple as NEC gets.
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Thank you.
Is there a short form and standard form for the TSC contracts and what differentiates them? i.e. is there a value threshold when moving from short form to standard?
Kind Regards,
Gareth.
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Hi Gareth, the suggestion of using the NEC4 framework contract is a good idea and relatively easy to do. The FC is only a couple of pages long, but allows you to call off PSC and ECC contracts and you could adapt it to include the ECS (and theory other forms such as ECSC, TSSC, etc. You essential complete the CDP1/2 once and call it off each time and fill in the missing entries. If your subbies are used to using the ECS i would stick with this as its is designed to work with ECC and uses the same language. I would be a little careful of using the PSC and TSC/TSS for subcontractors works for the following reasons:- TSC does include the same CEs (weather for example is missing), it’s designed for maintaining a services rather than delivering engineering and construction works and the language is slightly different to ECC and ECS. Again the same with the PSC/PSSC these contracts are designed for delivering services so not really subcontract works and might cause you some issues. the FC works a bit like the Task Order under the TSC, so should give you everything you need.
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Hi Chris,
Many thanks for your reply!
So essentially if our subcontractors have been working on ECC Short Subcontracts, then they would be better using a Framework Subcontract as opposed to a Term Service Subcontract, due to the similarity to what they are used to working from, and the ease to draft the Framework Subcontract?
I will propose this to the project team and client, as I think that they must have suggested TSC as a generic terms for a framework contract- not knowing the differences.
Kind Regards,
Gareth.
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Gareth, yes that would be my suggestion. There’s no compensation events for weather and ground conditions in the TSC so it would be quite a shift of risk from ECS for the subcontractor.
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Thanks Chris- that’s great.
Kind Regards,
Gareth.
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