NEC4 Managing a Supply Contract

Chapter 1 Introduction

Chapter 2 Core clauses
• 1 General
• 2 The Supplier’s main responsibilities
• 3 Time
• 4 Quality management
• 5 Payment
• 6 Compensation events
• 7 Title
• 8 Liabilities and insurance
• 9 Termination, resolving and avoiding disputes

Chapter 3 Option clauses
• Option X1: Price adjustment for inflation
• Option X2: Changes in the law
• Option X3: Multiple currencies
• Option X4: Ultimate holding company guarantee
• Option X7: Delay damages
• Option X10: Information modelling
• Option X11: Termination by the Purchaser
• Option X12: Multiparty collaboration (not used with Option X20)
• Option X13: Performance bond
• Option X14: Advanced payment to the Supplier
• Option X17: Low performance damages
• Option X18: Limitation of liability
• Option X20: Key Performance Indicators (not used with Option X12)
• Option X21: Whole life cost
• Option X25: Supplier warranties
• Option Y(UK)1: Project Bank Account
• Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999

Chapter 4 Schedule of Cost Components (SCC)

Appendix 1 Contract start-up checklist

Appendix 2 Contract close-down checklist

Appendix 3 Example communication forms

Appendix 4 Example joint compensation event tracking schedule

Appendix 5 Example quotation of a compensation event