NEC3 Supply Contract Guidance Notes (SC3-GN)

NEC3 Supply Contract Guidance Notes (SC3-GN)
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The purpose of these guidance notes is to explain the background of the NEC3 Supply Contract, the reasons for its provisions and to provide clear yet comprehensive guidance on how to use it.
The SA National Treasury Standard for Infrastructure Procurement and Delivery Management has, with the exception of the NEC3 Framework Contract (a head contract), endorsed the NEC3 family of contracts for use by organs of state in South Africa to serve their infrastructure needs.

The NEC3 family of contracts support a wide range of procurement strategies which can lead to improved project outcomes and in so doing realise value for money..

Chapter 1
• Introduction
• Background
• Purpose of these Guidance Notes
• NEC Objectives
Chapter 2
• Introduction to the Supply Contract
• When should the Supply Contract be used?
• Application of the Supply Contract
• Some features of the Supply Contract
• Key terminology in the Supply Contract
• Arrangement of the Supply Contract
• Subcontracts
• Clause numbering
• Roles of the parties
    • The Supply Manager
    • The Adjudicator
• The contract strategy
• The Options
• The Price Schedule
Chapter 3
• Procedure for preparing a Supply Contract
• Preparing the tender documents
• Contract Data part one
• Goods Information
• Contract Data part two
• The Price Schedule
• Inviting tenders
• Preparing a tender
• Assessing tenders
• Creating the contract
Chapter 4
• Supply Requirements
• Introduction
• Preparing the Supply Requirements
• Preparing Supply Requirements when using Incoterms
Chapter 5
Explanatory notes on the clauses of the Supply Contract
Core clauses
1 General
2 The Supplier's main responsibilities
3 Time
4 Testing and Defects
5 Payment
6 Compensation events
7 Title
8 Risks, liabilities, indemnities and insurance
9 Termination and dispute resolution
• Option clauses
    X1 Price adjustment for inflation
    X2 Changes in the law
    X3 Multiple currencies
    X4 Parent company guarantee
    X7 Delay damages
    X12 Partnering
    X13 Performance bond
    X14 Advanced payment to the Supplier
    X17 Low performance damages
    X20 Key Performance Indicators
    Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
    Z Additional conditions of contract
    1 Clause numbering system
    2 Sample form of tender
    3 Sample form of agreement
    4 Use of the SC as a subcontract
    5 Price Schedule
    6 Contract Data - worked example