Model Terms and Conditions of Contract

We have published refreshed and updated model terms and conditions for goods and services, and guidance, following an open consultation process with stakeholders in Government and the Private Sector.   These models embody good procurement practice and are designed for low to medium risk procurements, with values above the OJEU thresholds.

Key changes

These new versions include amended and new provisions that reflect a number of key policy changes in the following areas:

• a new clause allowing assignment of invoices to factoring companies without prior consent, which allows smaller businesses to raise finance more easily 
• explicit clauses around prompt payment and the Late Payment of Commercial Debts Act, that encourage good payment practice
• strengthened data security clauses following the publication of the data handling procedures in government report (June 08) (please note in specified circumstances these clauses are mandatory for new contracts). See OGC website for guidance on data security in contracts.

Payment terms

Users will be aware that following a recent Government announcement, departments in government are now encouraged to pay their SME suppliers within 10 days of a valid invoice. This is to help businesses that are faced with increased cash flow problems in the current economic climate. It should be noted however that the standard payment terms (which can be modified) set out in these model contracts, and therefore a model for contractually-binding arrangements, remain at 30 days.

Guidance and use

The guidance notes on the practical application of these terms and conditions should be referred to prior to use. Specialist advice may also be required.

Contracting authorities are strongly encouraged to adopt these terms and conditions, with any tailoring necessary to reflect individual circumstances, on a case by case basis.

• Model Terms and Conditions of Contracts for Goods (MS Word, 270KB)
• Guidance notes (goods) (PDF, 225KB)
• Model Terms and Conditions of Contracts for Services (MS Word, 269KB)
• Guidance notes (services) (PDF, 234KB)
• Consultancy Appendix (includes Specific Guidance for Consultancy procurement (PDF, 141KB) and a sample IPR clause (PDF, 111KB)

For further information contact the OGC Service Desk.

Disclaimer

The guidance and model documentation has been developed specifically for use on low to medium risk common goods and services procurements. Any government department or other contracting authority using the model documentation or guidance on the Website should take their own legal and other relevant professional advice in respect of any specific procurement project intending to use any documentation from the Website. Whilst OGC shall use reasonable endeavours to ensure that the information contained in the guidance and model documentation is correct, no warranty, express or implied, is given as to its accuracy. OGC does not accept any liability for loss or damage, which may arise from reliance upon any documentation of the Website and use of any of the documents is undertaken entirely at the users risk.