Term contract

New Engineering Contract (NEC) Option G: Term Contract, is a contract for the appointment of consultants.

It provides for the appointment of a consultant for an agreed period of time based on a priced task schedule and staff rates for different grades of staff. Prices on the task schedule are either a lump sum for that item, or may be carried out on a time basis. The consultant bears the risk of being able to perform the tasks at the agreed prices.

When the client wants the services to be carried out they are simply selected from the task schedule and the consultant is instructed.

If the client wants the consultant to carry out services that are not on the task schedule, they are notified as compensation events (similar to relevant events on other forms of contract). This will result additional payment being made, priced using the compensation event assessment procedure.

NB The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines term contracts as: ‘Contracts written to last a period of time and include agreed terms.’

[edit] Related articles on Designing Buildings Wiki

• Appointments.
• Compensation event.
• Contract.
• NEC Option A: Priced contract with activity schedule.
• NEC Option B: Priced contract with bill of quantities.
• NEC Option C: Target contract with activity schedule.
• NEC Option D: Target contract with bill of quantities.
• NEC Option E: Cost reimbursable contract.
• NEC3.
• Procurement route.
• Relevant event.