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NEC Option G Term Contracts: What It Means

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

ContractMain OptionsOption G?
NEC3 ECCA to FNo
NEC4 ECCA to FNo
NEC3 PSCA, C, E, GYes
NEC4 PSCA, C, ENo: removed
NEC4 PSS (the subcontract)A, C, ENo

How NEC3 Option G works

  1. The contract sets a Task Schedule at the start. It lists items, some time based and some with lump sum prices.
  2. 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.
  3. Prices for items not on the Task Schedule are assessed like compensation events (G55.2).
  4. 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).
  5. 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 itemBasisProgress at assessmentEarned
Site inspections (Task Schedule)Time based: 40 hours at £75All completed£3,000
Survey report (Task Schedule)Lump sum £6,000Half complete£3,000
Extra CCTV review (new item)Lump sum £2,500, priced like a compensation eventNot 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 NEC4Look at
A consultant appointed for a period, called off as neededThe Term Service Contract, which has Task Orders in core clause 19
A defined piece of consultancyThe PSC main Options: A, C or E
Work called off from a group of suppliersThe 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.

See how this works in practice

Click through Contract Status with sample contracts: raise the notice, reply to it, and watch both sides of one record.

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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.