---
title: NEC4 Professional Service Contract (PSC) High Level User Guide
date: 2025-03-17T07:44:35Z
modified: 2025-09-29T16:54:53Z
permalink: "https://gmhplanning.co.uk/nec-downloads/nec4-psc-high-level-user-guide/"
type: downloads
status: publish
excerpt: ""
wpid: 7831
nec_contract_type:
  - NEC4
nec_contract_version:
  - NEC Professional Services Contract (PSC)
download_category:
  - Contract types & documentation
featured_image: "https://gmhplanning.co.uk/wp-content/uploads/2025/03/NEC4-PSC-1-e1742321035426.jpg"
featured_image_alt: NEC4 Professional Service Contract (PSC)
author: Glenn Hide
timestamp: 2025-09-29T16:54:53Z
tags:
  - NEC4
  - NEC Professional Services Contract (PSC)
  - Contract types & documentation
---

## Introduction

This NEC4 PSC overview is intended to be a quick reference guide as to where a particular subject matter can be found within the NEC4 [Professional Service Contract (PSC)](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_version/nec-professional-services-contract-psc.md). This guide focuses on the most commonly used and relevant day to day clauses likely to be most relevant. For a specific project, any bespoke clause amendments introduced by a Client would have to be taken into account. Sections 1-8 are the core clauses for every PSC option A/C/E contract followed by option specific clause details.

## NEC4 PSC Section 1 – General

### Actions

**10.1** Reminder that all Parties are to act as stated in the contract.

**10.2** Obligation to also act in a spirit of mutual trust and cooperation.

**11.2** List of defined terms (in alphabetical order).

### Communications

**13.1** All communications in a form that can be read, copied and recorded.

**13.2** Communications are only valid if submitted by the system stated in Scope.

**13.3** Responses within period for reply or as stated in contract.

**13.5** Service Manger may extend period for reply by agreement.

**13.7** Any notification has to be separate from any other communication.

### Service Manger (SM) 

**14.1** Service Manger acceptance does not transfer liability from Contactor.

**14.2** Service Manger must formally delegate actions in writing.

**14.3** Service Manger can issue instructions to change the Scope.

### Early Warnings

**15.1** Reasons for which an early warning should be notified.

**15.2** Either party can instruct the other to an early warning meeting.

**15.3** Actions expected of all parties at an early warning meeting.

**15.4** Updating of the Early Warning Register by the Service Manger.

### Requirements for Instructions

**16.1** Notifying and resolving of an ambiguity between contract documents.

**16.2** Notifying and resolving of an illegal or impossible requirement.

## NEC4 PSC Section 2 – Consultant’s Responsibilities

### Providing the Works

**20.1** Consultant obligation to Provide the Works in accordance with Scope.

**20.3** Consultant not liable for defect providing used expected skill and care.

### People

**21.1** Consultant to provide key person(s) stated in CD2 or suitable replacement.

**21.2** Service Manger can instruct Consultant to remove any person.

### Working with Client and Others

**22.1** Requirement for Consultant to work with Others as instructed/in Scope.

**22.3** Liable costs if Consultant fails to achieve Key Date in CD1.

### Subcontracting

**23.2** Requirement to submit proposed Subcontractor for acceptance by SM.

**23.2** Reasons under which SM could not accept a Subcontractor.

**23.3** Also have to submit contract terms for Subcontractor for acceptance.

### Other responsibilities

**24.2** Consultant obeys instructions given in accordance with contract by SM.

**24.3** Consultant acts in accordance with Health & Safety as stated in Scope.

**26.1** Disclosure – Consultant may only publicise works with Client’s agreement.

## NEC4 PSC Section 3 – Programme 

### Starting Date / Completion Date

**30.1** Consultant does not start work on site until the first access date.

**30.2** Service Manger certifies date of Completion.

### The Programme

**31.1** Requirement for Consultant to submit first programme for acceptance.

**31.2** Detailed list of what is required to be shown on programme for acceptance.

**31.3** Reasons for SM not to accept an programme (otherwise should accept).

### Revising the Programme

**32.1** List of what should be shown on a revised programme.

**32.2** Intervals for programme submissions to Service Manger.

### Acceleration

**35.1** Either party can propose acceleration which SM can then instruct quote.

**35.2** Consultant issues acceleration quote which SM accepts/does not accept.

## NEC4 PSC Section 4 – Quality Management

### Quality Management System

**40.1** Consultant operates a quality management system in line with Scope.

**40.2** Quality policy statement and plan issued for Service Manger acceptance.

### Correcting Defects

**41.1** Until defect date either party notifies other when become aware of a defect.

**41.2** Requirement to correct defect within a time that minimises impact to Others.

**41.2** If defect not corrected SM assesses cost to Client of Others correcting it.

### Accepting Defects

**42.1** Can propose for defect to not be corrected and Scope changed accordingly.

**42.2** Consultant to submit resultant quotation saving to SM to accept/not accept.

## NEC4 PSC Section 5 – Payment

### Assessing the Amount Due

**50.1** Service Manger to assess the amount due at each assessment date.

**50.2** Definition of the amount due for each application.

**50.4** If Consultant not submit application on time SM will assess at zero.

**50.5** 25% PWDD can be withheld if no 1st accepted programme.

### Payment

**51.1** Service Manger to certify payment within 1week of assessment date.

**51.2** Confirmation of period within which payment should be made.

**51.3** Interest recoverable on items corrected on a later certificate.

**51.4** Interest recoverable on late payments.

### Defined Cost

**52.1** Any Consultants costs not identified in Defined Cost are in the Fee.

**53**  Final Assessment – section on how/when final assessment is made at end.

## NEC4 PSC Section 6 – Compensation Events

### Compensation Events

**60.1** List of what events would be valid compensation events (16 reasons).

### Notification 

**61.1** SM can notify compensation event at time of issuing instruction.

**61.2** SM instructs Consultant to produce quotation (and proceed in meantime).

**61.3** Consultant can notify a CE and can be time barred after a period if late.

**61.4** SM to accept or not accept if Consultant has notified a CE.

**61.4** Deemed acceptance if the SM does not respond to reminder.

**61.5** SM can advise that an early warning could have been given which wasn’t.

**61.6** SM can state assumptions for Consultant to base the quote upon.

**61.7** No compensation events can be issued after Completion.

### Quotations

**62.1** SM can request alternative quotations for dealing with a CE.

**62.2** Consultant to provide a quote and alterations to programme (if relevant).

**62.3** Consultant to provide quote within 3 weeks, SM response within 2 weeks.

**62.4** Service Manger can instruct a revised quote (after explaining why).

**62.5** Service Manger can extend period for Consultant to produce quote.

**62.6** Consultant’s quote deemed accepted if no response to reminder.

### Assessment

**63.1** Basis of quotes in relation to if should be actual or forecast defined cost.

**63.4** Only reasons stated for which Prices can be reduced.

**63.5** Definition of reasons for contractual movement in Completion Date.

**63.7** SM may assess as though early warning had been given if it wasn’t.

**63.8** Rules for allocation of risk within a compensation event quotation.

**63.9** Requires Consultant to act promptly and competently to a CE.

**63.10** How ambiguities will be assessed in terms of a compensation event.

### Service Manger’s Assessments

**64.1** Reasons under which SM can make own assessment of a CE.

**64.3** SM to notify Consultant of their own assessment of a CE.

**64.4** Deemed acceptance if SM no response to a notification of no assessment.

### Proposed Instructions

**65.1** Service Manager can instruct a quotation for proposed instruction.

**65.2** Consultant submits quotation within 3 weeks and SM to respond.

**65.3** If quotation not accepted SM can still instruct (and then assessed as CE).

### Implementation

**66.1** Implemented when CE accepted/assessed/deemed accepted.

**66.2** Prices/Completion Date changed accordingly following agreement.

**66.3** Compensation event quote is not changed if later found to be wrong.

## NEC4 PSC Section 7 – Title

**70.1** Client has right to use material provided by Consultant as stated in Scope.

**70.2** Consultant right to use material provided by Client to Provide the Service.

## NEC4 PSC Section 8 – Risks and Insurance

**80.1** List of Client’s liabilities.

**81.1** List of Consultant’s liabilities

**83** Insurance cover details

**84** Insurance policies and who needs to provide what to whom.

**87** Consultant’s liabilities limited to that stated in CD1 except excluded matters.

## NEC4 PSC Section 9 – Termination

**91.1** List of valid reasons for termination.

**92** Procedures to follow upon termination.

## NEC4 PSC Additional Option A clauses

**11.2** Option A specific identified and defined terms.

**20.4** Consultant provides forecast of total expenses at contract intervals.

**31.4** Requirement for activity schedule to relate to items on programme.

**52.2** Consultant keeps records of expenses and makes available for inspection.

**55.1** Clarifies that Activity Schedule is not Scope.

**55.3** Consultant may submit revised Activity schedule for acceptance.

**55.4** Reasons SM has for not accepting a revised Activity Schedule.

**63.13** Ascertaining a new People Rate where required.

## NEC4 PSC Additional Option C clauses

**11.2** Option C specific identified and defined terms.

**20.4** Consultant provides forecast of total Defined Cost/expenses.

**24.4** Consultant to submit pricing information for each subcontract.

**50.7** Payments in other currencies.

**50.9** Opportunity for finalising Defined Costs for part of the works.

**52.3** Requirement for Consultant to keep records.

**54.1/2** SM assesses Consultant’s share of the Prices and actual defined cost.

**54.3** Provisional assessment of Consultant’s share following Completion.

**54.4**  Final assessment of Consultant’s share following Completion.

**55.2** Clarifies that information in Activity Schedule is not Scope.

**93.3** Rules on assessing share in event of termination of the contract.

## NEC4 PSC Additional Option E clauses

**11.2** Option E specific identified and defined terms.

**20.4** Consultant provides forecast of total Defined cost at contract intervals.

**24.4** Consultant to submit pricing information for each subcontract.

**50.8** Payments in other currencies.

**50.9** Opportunity for finalising Defined Costs for part of the works.

**52.3** Requirement for Consultant to keep records.

## NEC4 PSC Secondary Options

### X1 – Price Adjustment for Inflation

**X1.1** Defined terms – Base Date Index, Latest Index, Price Adjustment Factor.

**X1.2** How Price Adjustment Factor is applied.

**X1.3/4** Price adjustment for amount due.

**X1.5** Defined cost for compensation events.

**X2.1** X2 Changes in law – CE if occurs after the Contract Date.

**X3.1/2** X3 Multiple currencies – payment and exchange rates.

**X4.1/2** X4 Ultimate Company Guarantee – given within 4 weeks of Contract Date.

**X5.1** X5 Sectional Completion – Completion/Completion Date apply to sectional.

**X6.1** X6 Bonus for Early Completion – paid per day at rate in CD1.

### X7 – Delay Damages

**X7.1** Charged at rate stated in CD1 until Completion or take over.

**X7.2** Client repays overpayment of damages with interest.

**X7.3** Delay damages are reduced with partial take over.

**X8.1-3** X8 Undertaking to Others – as stated in CD1.

**X9.1** X9 Transfer of Rights – Client owns the Consultant’s rights over materials.

### X10 – Information Modelling

**X10.1** Defined terms.

**X10.2** Consultant collaborates with other Information Providers

**X10.3** Early warning requirement for anything could impact Information Model

**X10.4** Submission of Information Execution Plan.

**X10.6** Compensation events.

**X10.7** Client and Consultant liabilities.

**X11.2** X11 Termination by Client – procedures and amount due to be paid.

### X12 – Multiparty Collaboration

**X12.1** Identified and defined terms.

**X12.2** Actions to be taken by Partners and Core Group.

**X12.3** Collaboration by all Parties.

**X12.4** Incentives – amounts paid to Partner if KPI(s) achieved.

**X13.1**  X13 Performance Bond – required as stated in CD1.

### X18 – Limitation of Liability

**X18.1-3** Limits of liability as stated in Contract Data part 1.

**X18.4** Consultant not liable for defect identified after liability.

### X20 Key Performance Indicators and Reporting Requirements

**X20.1-5**  As per CD1.

## Schedule of Cost Components (for use with options C/E)

**11-13** Payments applicable for people.

**21** Payments applicable for subcontractors.

**31**  Cost of charges paid or received by the Consultant plus overhead %.

**4** Insurance premiums and insurable events excluded from cost.

## Short Schedule of Cost Components (for use with options A)

**11**  Payments applicable for people

**21** Payments applicable for subcontractors.

**3** Insurance premiums and insurable events excluded from cost.

## Abbreviations:

**CD1** Contract Data part 1

**CD2** Contract Data part 2

**SM** Service Manger

**CE** Compensation event

[NEC4 PSC High Level User Guide – GMH Planning](https://gmhplanning.co.uk/wp-content/uploads/2025/03/NEC4-PSC-High-Level-User-Guide-GMH-Planning-1-1.pdf)[Download](https://gmhplanning.co.uk/wp-content/uploads/2025/03/NEC4-PSC-High-Level-User-Guide-GMH-Planning-1-1.pdf)

## Topics

**NEC Contract Editions:** [NEC4](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_type/nec4.md)

**NEC Contract Versions:** [NEC Professional Services Contract (PSC)](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/nec_contract_version/nec-professional-services-contract-psc.md)

**Download Categories:** [Contract types & documentation](https://gmhplanning.co.uk/wp-content/uploads/wp-mfa-exports/taxonomy/download_category/contract-types-documentation.md)