Can recruitment agencies use the NEC4 contract in the UK with a construction client, and if so, which ones?

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daniel
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Can recruitment agencies use the NEC4 contract in the UK with a construction client, and if so, which ones?

Post by daniel »

Yes, a recruitment agency can use the NEC4 Professional Service Contract (PSC), or its shorter variant the NEC4 Professional Service Short Contract (PSSC), to contract with a construction client in the UK for the provision of professional and consultancy services.

Applicable NEC4 Contracts

The NEC4 suite includes specific contracts for procuring services as opposed to physical works or goods. The relevant contracts for a recruitment agency providing personnel (such as engineers, project managers, or quantity surveyors) are:

NEC4 Professional Service Contract (PSC): This is the main contract for appointing a supplier to provide professional services. It is suitable for a range of consultancy-type roles, including engineering, architectural, and project management services.

NEC4 Professional Service Short Contract (PSSC): This is a simpler alternative designed for lower-complexity, lower-risk engagements.
These service contracts provide a consistent framework and the collaborative principles found across the entire NEC4 suite, such as early warnings and a spirit of mutual trust and cooperation.

Key Considerations

Service vs. Works: The primary distinction is that the PSC is for services, not for undertaking the physical construction work itself, which would fall under the NEC4 Engineering and Construction Contract (ECC).

Payment and Agency Fees: Under cost-reimbursable options (like Option E for the PSC), the actual costs of employing staff are generally recoverable. However, the agency's recruitment fees themselves are typically assumed to be included within the agency's overarching "fee" rather than being an additional "defined cost" unless explicitly provided for through specific contract drafting (e.g., using Z clauses).

Contractual Flow Down: If the main contractor is operating under an ECC with the client, they can use the NEC4 Professional Service Subcontract (PSS) to flow down relevant terms to a consultant they engage, ensuring consistency across the supply chain.

Recruitment agencies are able to use these contracts to align their engagement with the widely adopted NEC4 framework used in UK public and private sector construction projects.
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