NEC3 Term Service Contract (TSC3)

NEC3 Term Service Contract (TSC3)
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The Term Service Contract is intended to be used for the appointment of a contractor for a fixed period of time to manage and provide a service.  The service can be continuous or managed on a Task Order basis or a mix of both.  It is ideal for infrastructure maintenance and operation of facilities.

This document contains the core clauses, the three main option clauses, secondary option clauses and contract data forms.

The Facilities Management Board of the UK Cabinet Office recognises that the NEC3 Term Services Contracts support good practice in FM Procurement in the public sector. BIFM also supports the NEC3 Term Service Contracts.

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.

Copyright Policy
 Users should note that the NEC Forms of Contract are protected by copyright and may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical or photocopying, recording or otherwise, without the prior permission of the copyright owner. However, Contract Data forms may be reproduced for the purpose of obtaining tenders, awarding and administering contracts.

Likewise, plagiarising any copyrighted document is illegal. For users seeking to prepare their own bespoke contracts based on the NEC Forms of Contract, please contact NEC at to discuss and obtain a copyright licence.


Schedule of Options
Core clauses
• 1  General
• 2  The Contractor’s main responsibilities
• 3  Time
• 4  Testing and Defects
• 5  Payment
• 6  Compensation events
• 7  Use of equipment, Plant and Materials
• 8  Risks and insurance
• 9  Termination
Main option clauses
• A  Priced contract with Price List
• C  Target contract with Price List
• E  Cost reimbursable contract
Dispute resolution
• Option W1
• Option W2
Secondary option clauses
• X1     Price adjustment for inflation
• X2     Changes in the law
• X3     Multiple currencies
• X4     Parent company guarantee
• X12   Partnering
• X13   Performance bond
• X17  Low service damages
• X18   Limitation of liability
• X19   Task Order
• X20  Key Performance Indicators
• Options Y Compliance with national legislation
•  Y(UK)1  Project Bank Account
• Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
• Z Additional conditions of contract
Note Options X5 to X11, X14 and X16 are not used

Contract Data