Task Orders Under NEC Term Service Contracts

An NEC Task Order is the Service Manager's instruction under a term service contract to carry out a specific piece of work, called a Task. It describes the work, gives dates and is priced from the Price List or by a quotation. Under NEC4 it's a core part of the Term Service Contract, not an add-on.

This page explains the NEC4 TSC. The short version uses Task Orders too, while the FMC has its own terms: Service Orders and, under Option X27, Project Orders. Under NEC3, Task Orders came through Option X19, whereas NEC4's X19 means something else. See NEC contract types for all the forms.

What a Task Order contains

Under clause 19.1, expect a Task Order to include:

• A description of the work
• Its starting date and Task Completion Date
• The price, from the Price List items or an agreed quotation
• Any delay damages for that Task

Keep the description precise enough for someone reading it two years later. A poor description is a common reason for arguments over whether something was within the Task.

How orders are priced

Route	When it fits	What happens
Price List items	The work is covered by existing items and rates	The Service Manager orders it at listed prices
Quotation first	The work isn't on the list, or is too big to price from it directly	The Service Manager instructs a quotation under 19.1, then issues the Task Order

A Price List that covers most of the recurring work saves a lot of time. If nearly every Task needs a quotation, the list probably doesn't match how the work is ordered. How the money then works depends on the main Option: A and C use the Price List directly, and E reimburses cost.

Task Orders and compensation events

A Task Order isn't a compensation event (19.8), because ordering work is what the contract is for. These things around it can be:

What happens	Event
An existing Task is changed by instruction	60.1(1)
A Task Order reaches the Contractor later than the start date it gives	60.1(4)
The Service Manager instructs a stop or do-not-start	60.1(5)
A quotation for a proposed instruction is turned down, or a Task will not be instructed	60.1(17)
On Options A and C, a final quantity differs from the Price List in stated cases	60.2

The Contractor's delay is measured against the Task Completion Date, using the Task Order programme current at the dividing date (63.6). An event that only alters quantities priced in the list is priced from the list, while others go to Defined Cost and the Fee (63.2).

Task Order programmes and the plan

The plan covers the whole service (31, 32). A Task Order may also need its own Task Order programme, and clauses 33 and 34 deal with these. If no programme is in place where it's needed, the Service Manager can assess events on its own view (64.1, 64.2). Check the Scope and your Task Order template, so everyone knows which Tasks need a programme.

A worked example

A fictional highways contract, with illustrative prices. The Service Manager orders 12 drainage repairs from Price List item 4.3 at £1,250 each, for £15,000, starting on 3 March and to be complete by 28 March.

1. The order arrives on 5 March. It's late by two days, so the Contractor notifies an event under 60.1(4). Since the crew had been kept available, it quotes an illustrative £640 and two days' delay to the Task Completion Date.
2. On 12 March, the Service Manager adds three more repairs of the same type. This changes the Task, so it's 60.1(1). The change only alters a listed quantity, so it's priced from the Price List: 3 x £1,250 = £3,750. The Task Completion Date moves by three further days, to 2 April.
3. The Task finishes on 31 March, ahead of the revised date. Delay damages don't apply.

Managing Task Orders day to day

A term contract can generate hundreds of orders, so simple controls matter. Keep a register with these fields:

• Task Order number, date issued and date received
• Location or Affected Property
• Priced from the list, or quoted
• Starting date and current Task Completion Date
• Whether a Task Order programme is needed and accepted
• Linked compensation events
• Price, status and payment date

Reviewing it monthly with the payment assessment will catch missed Task Completion Dates and any open quotations. Under Options A and C, payment follows the Price for Service Provided to Date, as described in the payment and cost guide.

What goes wrong

• Backdated orders. Work begins on a phone call and paperwork follows. It's a quick route to 60.1(4) arguments and missing records.
• Treating a big Task as just another order. A major renewal may need an accepted programme and a proper quotation, or even a separate contract. See ECC vs TSC.
• Confusing a change with a new order. Adding to a Task is an event; a new Task isn't. Be clear which you mean.
• Using ECC event numbers. They don't match, and a letter with the wrong reference invites an argument.

Related guides

• NEC Contract Types: Which Form Do You Need?
• Professional Services Under NEC
• ECC vs PSC: Works or Professional Services?
• Back-to-Back NEC Subcontracts

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.