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.
Featured articles and news
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
CIOB Construction Manager of the Year 2025
Just one of the winners at the CIOB Awards 2025.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.
Construction Products Reform Green Paper and Consultation
Still time to respond as consultation closes on 21 May 2025.
Resilient façade systems for smog reduction in Shanghai
A technical approach using computer simulation and analysis of solar radiation, wind patterns, and ventilation.