ABSTRACT
The payment is based on a combination of Defined Cost paid, and also to be paid by the Contractor. A common area of confusion if the Contractor is providing materials within a Term Service Contract (TSC) is the payment to the Contractor for unfixed materials within or outside the Service Areas, i.e. materials on- or off-site. The Contractor submits an application for payment to the Service Manager before each assessment date, and must include details of the application, the format to be in accordance with the Scope. The Client makes payment to the Project Bank Account, the Contractor makes payment to the Project Bank Account of any amounts which the Client has notified the Contractor intends to withhold from the certified amount and which is required to make payment to Named Suppliers. NEC4 introduced a new provision where, in the case of the TSC, the Service Manager makes a final assessment of amounts due to the Contractor.
