The NEC supply contract, the NEC4 SC, is used to buy high-value goods and the services that go with them, locally or internationally. A Purchaser buys from a Supplier, with a Supply Manager acting for the Purchaser. Turbines, transformers, cranes and tunnel boring machines are the kinds of goods it is meant for.
The vocabulary may be new, but the structure will be familiar if you know the works contracts. For simpler orders, use the Supply Short Contract. The whole range is on the NEC contract types page.
Role names and terms
| In the ECC | In the NEC4 SC |
|---|---|
| Client | Purchaser |
| Contractor | Supplier |
| Project Manager | Supply Manager |
| Completion and the Completion Date | Delivery and the Delivery Date |
| The Site | The Delivery Place, plus any Purchaser premises the work needs |
| Main Options A to F | No main Options: a Price List of lump sums and of quantities with rates |
What the contract covers
- Early warning. Each side warns the other of anything that could increase the total of the Prices, hold up Delivery or reduce how well the goods perform (15.1). The Supply Manager keeps the Early Warning Register (15.4), and meetings deal with the matters on it (15.3).
- Programme. Where the Contract Data doesn't name one, a first programme goes in for acceptance (31.1). Clauses 31 and 32 follow the ECC pattern, and 31.3 covers the reply and what follows silence.
- Payment. The Supply Manager assesses at each assessment date (50.1) after an application from the Supplier (50.2), and certifies within one week (51.1). If no programme is named, one quarter is held back until a first programme goes in (50.5). The final assessment is under clause 53.
- Termination. Follows the 90 series, with a Termination Table. The Purchaser may buy the remainder from elsewhere (92.1).
The compensation events
There are 18 at 60.1. Most resemble the ECC, but a few are specific to supply:
| Event | What it covers |
|---|---|
| 60.1(2) | Late access to the Purchaser's premises for the work, measured against both the date needed and the Accepted Programme |
| 60.1(9) | A search for a Defect that finds none |
| 60.1(11) | The Purchaser not supplying records, data sheets, materials, facilities or samples for tests as the Scope says |
| 60.1(15) | An event in transit that prevents Delivery of all the goods or by the planned Delivery Date |
| 60.1(16) | An instruction correcting a mistake in the Price List |
| 60.1(17) | A quotation for a proposed instruction turned down |
The process in clauses 61 to 66 follows the same pattern as in the compensation events guide, adapted for Delivery. Don't use ECC event numbers in letters under this form. As a quick test, 60.1(12) in the ECC means physical conditions, while here it means an event listed among the Purchaser's liabilities.
Options
The Options available in the NEC4 SC are X1, X2, X3, X4, X7, X10, X11, X12, X13, X14, X17, X18, X20, X21, X25 and X29, with Y(UK)1, Y(UK)3 and Z. X25 is specific to supply and deals with Supplier warranties. X12 and X20 can't be used together.
Y(UK)2 is missing from that list because the form doesn't include the Construction Act wording. If the package includes fitting or other work on a construction site, take advice on whether the Act applies, and whether the ECC would be the better form.
Goods in batches
Batch Orders belong to the NEC4 Supply Short Contract, at 23.1. The Supply Contract text has no Batch Order provision, so don't plan on one. If you want repeat batches under the full SC, the deal needs its own drafting, including what happens to batches that are never called off. Otherwise look at the SSC.
What to get right at the start
- Define the goods and the Delivery Place exactly. Delay and risk both depend on them.
- Agree inspections before delivery. Factory testing is often where disputes start.
- Be clear about transit. Know who carries what while the goods are moving, and how the event at 60.1(15) interacts with your insurance.
- Fix the delay exposure. Option X7 needs a rate that reflects the effect on the wider project.
- Plan for warranties. Choose X25 deliberately. Don't rely on memory of how it works under other forms.
- Link it to the project. If goods feed an ECC, line up the Delivery Date with the NEC programme on the main job, and consider how a late delivery reaches the Contractor.
Related guides
- NEC Contract Types: Which Form Do You Need?
- NEC4 Supply Short Contract (SSC)
- NEC4 Design Build and Operate Contract (DBO)
- NEC4 Alliance Contract (ALC)
- NEC4 Term Service Subcontract (TSS)
- NEC4 Term Service Short Contract (TSSC)
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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.