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X19: Task Order (NEC3) and Termination by Either Party (NEC4)

NEC X19 means different things by edition. In the NEC3 Term Service Contract (TSC), X19 is the Task Order Option; in the NEC4 TSC, X19 is "Termination by either Party" and Task Orders have moved into core clause 19. Neither appears in the Engineering and Construction Contract.

So the title above only holds for NEC3. If you have an NEC4 term contract and someone refers to "the X19 Task Order", they are probably using the NEC3 number. The secondary Options overview lists the other numbers that changed.

Where to look

Edition and formWhat X19 isWhere Task Orders are
NEC3 TSCTask OrderOption X19
NEC4 TSC and Term Service SubcontractTermination by either PartyCore clause 19 (TSC)
NEC3 and NEC4 ECCNo X19Not applicable. The NEC4 ECS states that X19 isn't used
NEC3 PSCNo X19Main Option G

NEC3 TSC: the Task Order Option

X19 lets the Service Manager order defined pieces of work during the service period, each with its own dates and damages. The main steps are:

  1. The Service Manager discusses a proposed Task with the Contractor, then issues a Task Order (X19.2). The order states the work, a priced list of items, starting and completion dates, and the delay damages.
  2. Items in the Price List are priced at its rates. Others are assessed as a compensation event would be (X19.3).
  3. The Contractor doesn't start until instructed (X19.4). The Task Order can later be changed by instruction.
  4. The Contractor submits a Task Order programme for acceptance (X19.5, with a reply under X19.7 and revisions under X19.9).
  5. A late Task costs the Contractor the Task Order's delay damages (X19.3).

X19.10 sets out the Task Order compensation events. They include a change to a Task Order, late receipt of one and late access or late Client-supplied items against the Task Order programme.

NEC4 TSC: Task Orders in the core clauses

In NEC4, Task Orders are not optional. The Service Manager can ask for a quotation for a Task (19.1), accept it and issue the order or take other stated steps (19.2), and assess the Task itself if no quotation arrives in time (19.5). Items outside the Price List are priced as a compensation event would be (19.6), and a late Task means paying the delay damages in the order (19.7). Issuing an order isn't a compensation event (19.8), but a Task that's quoted for and not instructed is one, at 60.1(17) of the TSC list. That number is specific to the TSC: the ECC's 60.1(17) is a different event. See the Term Service Contract guide.

NEC4 X19: termination by either Party

The NEC4 Option lets either Party end a term contract for its own reasons, after a minimum period and by notice. Read the periods and the sub-clause numbers in your own contract. Our termination overview covers the core rules, and Option X11 is the Client-only equivalent.

For a Contractor, the risk is losing a long contract earlier than planned, with fixed costs still to spread. For a Client, it's the same risk the other way round: a Contractor could leave a service it depends on. Tenderers should take this into account, and both sides should plan for handover.

Practical example

A fictional highway authority moves from an NEC3 to an NEC4 term contract, and its templates still say "Task Order issued under X19". On the new form that reference points to a termination Option, or to nothing if X19 isn't selected. The right reference is core clause 19. Its register also needs updating, because the compensation event list and programme references differ too. This kind of change is easy to miss, and it's one of the reasons that moving a template between editions needs a clause-by-clause check. The NEC3 and NEC4 comparison can help you plan the work.

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.