NEC Option G is the term contract in the NEC3 Professional Services Contract (PSC). It lets an Employer appoint a Consultant for a period and call off work through Task Orders as the need arises. There is no Option G in the Engineering and Construction Contract, and the NEC4 PSC doesn't have one either.
If someone mentions Option G, they're almost certainly talking about an NEC3 consultant framework or commission. If you're setting up something new under NEC4, look elsewhere; the alternatives are below. This page is part of the NEC main Options section.
Where Option G is and isn't used
| Contract | Main Options | Option G? |
|---|---|---|
| NEC3 ECC | A to F | No |
| NEC4 ECC | A to F | No |
| NEC3 PSC | A, C, E, G | Yes |
| NEC4 PSC | A, C, E | No: removed |
| NEC4 PSS (the subcontract) | A, C, E | No |
How NEC3 Option G works
- The contract sets a Task Schedule at the start. It lists items, some time based and some with lump sum prices.
- The Employer discusses each Task Order with the Consultant first. G55.1 lists what the order contains: a description of the work, a priced list showing which items come from the Task Schedule, starting and completion dates, any delay damages, and the Task's total.
- Prices for items not on the Task Schedule are assessed like compensation events (G55.2).
- The Consultant waits for the Task Order before starting that work and finishes by the Task Completion Date. No order can be issued after the Completion Date (G55.3).
- Payment is Task by Task. For each Task, time based items earn the Time Charge for finished work, and other items earn the finished proportion of their lump sum (G11.2(17)).
A simple example
Illustrative figures for a fictional highway authority that appoints a consultant for three years of drainage surveys and design advice.
| Task Order 7 item | Basis | Progress at assessment | Earned |
|---|---|---|---|
| Site inspections (Task Schedule) | Time based: 40 hours at £75 | All completed | £3,000 |
| Survey report (Task Schedule) | Lump sum £6,000 | Half complete | £3,000 |
| Extra CCTV review (new item) | Lump sum £2,500, priced like a compensation event | Not started | £0 |
| Price for Services Provided to Date for this Task | £6,000 |
The Consultant's invoice then adds expenses and other amounts due across the Tasks.
Compensation events specific to Option G
- An instruction changing a Task Order (60.1(13)). A resulting reduction in the Time Charge reduces the Prices.
- The Consultant receiving a Task Order after the starting date in it (60.1(14)).
- A Task Completion Date falling later than the Completion Date (60.1(15)).
- A correction of a mistake in the Task Schedule caused by ambiguity or inconsistency is dealt with at 60.2.
Delay is measured as the effect on planned Task Completion (G63.16), and changed Prices are shown as changes to the Task Schedule (G63.17). When the Employer implements an event, it also updates the Task's final total and programme (G65.5). If Option X7 applies, delay damages are set out in each Task Order.
What to use now
| Need under NEC4 | Look at |
|---|---|
| A consultant appointed for a period, called off as needed | The Term Service Contract, which has Task Orders in core clause 19 |
| A defined piece of consultancy | The PSC main Options: A, C or E |
| Work called off from a group of suppliers | The Framework Contract, with a chosen contract for each order |
The NEC4 PSC has no term Option, so the TSC is one route to a term service from a consultant. If you take it, check that its terms fit professional services work, including professional indemnity insurance, liability and the standard of care, as these points may need Z clauses. The guide to Task Orders under NEC term service contracts explains how the TSC handles them.
Common confusion
- "Our ECC is Option G." It can't be. Check for a typing error or a bespoke amendment.
- Treating Task Orders as compensation events. A Task Order under Option G is an instruction within the contract. Only changing an order or receiving one late falls within the events above.
- Reading NEC4 numbers across. Option G's clause references are all NEC3 PSC numbers, so they don't transfer to any NEC4 form.
Related guides
- NEC Main Options: A to F Explained
- PSC Main Options
- TSC Main Options
- Pain/Gain Share Explained
- Setting Share Ranges and Percentages
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