NEC4 Supply Short Contract (SSC)

Use the NEC4 Supply Short Contract (SSC) to buy goods, locally or internationally, when the deal doesn't need sophisticated management and the risk to both sides is low. It works for a single order or for goods called off by Batch Order, and the Purchaser deals directly with the Supplier.

There is no Supply Manager. For a large purchase needing active management, or one with demanding testing, look at the NEC4 Supply Contract instead. Other forms are compared on the NEC contract types page.

When it fits

Good fit	Poor fit
Standard pipes, signs, cable or precast units	A one-off machine designed for your project
Repeat deliveries over a period at known prices	Goods where warranties and factory tests drive the risk
A short lead time with few dependencies	A long lead time that the main project programme depends on
A team that's happy to run it directly	A team that needs someone appointed to manage it

Batch Orders

Where the Contract Data says the Purchaser wants goods on this basis, clause 23.1 applies. In plain terms:

• A Batch Order tells the Supplier to deliver a batch of items within a set time.
• It states what the goods are, how many, the start and delivery dates, the item prices and the batch total.
• The Purchaser consults the Supplier about what is in the order before issuing it.
• The Contract Data gives the interval between orders, an end date and a range of quantities.
• The delivery date comes from the Batch Order, not from the Contract Data, and delay damages are set with the batch in mind.

Three things that can trigger a compensation event

Clause 23.1 adds its own events to the main list. It helps to think of each as a departure from what the Supplier priced:

1. A Batch Order asks for an item that isn't in the Price List.
2. The Batch Orders issued add up to a different total quantity from the Price List.
3. A single Batch Order falls outside the quantity range in the Contract Data.

The second one matters most to a Purchaser. A forecast in the Price List that turns out high can have a cost at the end, so don't inflate it to attract a lower rate. A Supplier in turn should keep track of the running total.

The main procedures

• Early warning. Either side warns of something that could increase the total of the Prices, upset the timing of the supply or harm how the goods perform in use (15.1). Both then work on the response (15.2). There is no register.
• Programmes. The Scope says whether one is needed and what it shows (31.1).
• Payment. Assessment days fall monthly from the starting date, ending in the month after the defects date, or sooner on notice (50.1). The Supplier invoices the amount due before each one, and payment follows within three weeks of the assessment day (51.1).
• Termination. A permitted reason and notice (90.1), with the amount due at 92.1. On termination, the Purchaser can buy the rest elsewhere (91.1).

Compensation events at 60.1

The main list has nine events: (1) a change to the Scope by instruction, (2) access to and use of premises not given, (3) something from the Purchaser arriving late, (4) a stop or do-not-start instruction, (5) the Purchaser working outside the Scope's conditions, (6) a late reply, (7) a changed decision, (8) a corrected assumption and (9) a corrected mistake in the Price List.

A Supplier who notifies an event later than the contract allows gets no change to the Prices or the date (61.3). The period is in the contract, so note it when you sign.

A worked example

A fictional highways contractor needs road signs for two years. Its Price List shows an illustrative 2,000 signs at £60 each, ordered quarterly, with each order between 100 and 400 signs.

Order	Signs	Effect
Q1 to Q7	1,500 in total	Within range, priced from the list
Q8	500	Above the range: a compensation event under 23.1
Total	2,000	Matches the Price List, so no event on the total

The Supplier quotes for the effect of the oversized order, perhaps an extra delivery run. Splitting Q8 into two orders might have avoided the event. The compensation events guide explains the general principles.

What people get wrong

• Using it for equipment that is really a project. If the goods are key to a programme, the lack of a managed process will show.
• Ignoring the quantity range. It's more than a tender detail. Going outside it reopens the price.
• Treating Batch Orders as a formality. The consultation step exists so that order sizes and dates are workable. Skipping it often leads to late deliveries nobody planned for.

Related guides

• NEC Contract Types: Which Form Do You Need?
• NEC4 Design Build and Operate Contract (DBO)
• NEC4 Alliance Contract (ALC)
• NEC4 Facilities Management Contract
• NEC4 Term Service Short Contract (TSSC)
• NEC4 Supply Contract (SC)

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.