The NEC4 Term Service Subcontract (TSS) lets a Contractor pass part of a term service to a Subcontractor for a fixed period. It normally sits below an NEC4 Term Service Contract, or another NEC4 main contract, and covers ongoing maintenance, repair or service of an operational asset, including one-off Tasks.
It keeps the clause numbers of the Term Service Contract, but merges the Client's and the Service Manager's positions into the Contractor. Its place among the forms is shown on the NEC contract types page.
Typical uses
- A highways maintenance contractor subletting gully cleaning or road markings across its network
- A building services contractor bringing in a lift or fire alarm specialist for the period of its contract
- A regional contractor engaging a local firm for reactive work in part of a region
The common thread is that the subcontractor is on call, or repeating work, over a term. For one defined job carried out under a term contract, a different subcontract may be simpler. Compare the ECS, especially if a substantial piece of construction is involved.
Terms that change
| In the TSC | In the TSS |
|---|---|
| Client (as paying Party) | Contractor |
| Service Manager | Contractor |
| Contractor | Subcontractor |
| Scope | Subcontract Scope |
| Contract Data | Subcontract Data |
| Service Period | Subcontract Service Period |
| Task, Task Order, Price List, Plan, Affected Property | The same names |
Options
The TSS offers Option A (priced with price list), Option C (target with price list) and Option E (cost reimbursable). The subcontract can use a different main Option from the main contract, which is useful when a Contractor on a target wants a fixed-price specialist. The secondary Options include X1, X2, X3, X4, X10, X11 (termination by the Contractor), X12, X13, X17, X18, X19, X20, X21, X23, X24 and X29, with limits on some of them. Dispute resolution is by W1 or W2. Check the current list in your edition.
How Tasks flow down
- The Service Manager issues a Task Order to the Contractor under the main contract.
- The Contractor decides which part goes to the Subcontractor.
- It issues its own Task Order under the TSS, with its own start and completion dates and any delay damages. If it asks for a quotation first, that is under 19.1 of the TSS.
- Any change flows back up: if the Subcontractor's event was caused by the Service Manager, the Contractor needs to notify the same matter under the main contract, within that contract's time limit.
Both contracts need to run on dates that work together. A Task Completion Date below shouldn't leave the Contractor with no time to accept the work and report on it. The pattern of sequencing is the same as the one explained for back-to-back subcontracts.
Compensation events
The 18 events follow the TSC numbering, with some wording changed for the extra tier. In (6), the party failing to keep to the plan's timing can be the Client, the Contractor or Others. In (12), the liabilities are those of the Client or the Contractor. Don't assume the periods carry over: the TSS has its own, and they differ from the TSC's. We don't state them here because they should be read from your own copy.
Checklist before letting a TSS
- Do the Subcontract Service Period and the Contractor's Service Period fit together, including any extension under X23?
- If the main contract can end early, what happens to the subcontract?
- Does the Price List match the way the Contractor will order the work?
- Which Affected Property, and which part of the Service Areas, does the subcontract cover? A change to the Affected Property is an event, 60.1(11), so be precise.
- Who at the Contractor issues Task Orders, and who replies to quotations?
- Are minimum volumes promised, or none? Say so plainly in the documents. Subcontractors often assume work will come, and the contract may not promise it.
A worked example
A fictional contractor holds a three-year TSC for a council's street lighting. It lets the column-testing work on a TSS with Option A, using a Price List at an illustrative £28 per column. In year two, the council adds 400 columns from a new estate. Under the main contract that is a change to the Affected Property. The Contractor passes this down with its own instruction, and the Subcontractor's quantity and price change as a compensation event, assessed through the Price List where it applies. Both events need to be recorded, one per contract, and the two records tell the whole story.
Related guides
- NEC Contract Types: Which Form Do You Need?
- NEC4 Term Service Short Contract (TSSC)
- NEC4 Supply Contract (SC)
- NEC4 Supply Short Contract (SSC)
- NEC4 Professional Service Short Contract (PSSC)
- NEC4 Term Service Contract (TSC)
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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.