Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Services agreement definition

What does Services agreement mean? A services agreement is a contract under which a supplier agrees to perform specified services for a customer in return for payment of fees or charges. The term is descriptive rather than statutory and is used across commercial, IT, professional services and outsourcing matters, often structured as a master services agreement with statements of work. Key features typically include: scope and specification; service levels/KPIs and remedies (including service credits); pricing and payment; governance and change control; warranties; intellectual property ownership and licensing of deliverables; confidentiality; data protection and data processing (UK GDPR/EU GDPR); subcontracting; indemnities (for example, IP infringement); limitation...

Pre-construction Services Agreements in Two-stage Tendering: Drafting Essentials, HRB/BSR Compliance, Payment and Termination, Timing Risks, and JCT 2024

Published by a LexisNexis Construction expert

Practice notes

This Practice Note carefully considers the role of pre-construction Services agreements (PCSAs), most commonly applied in Two-stage tendering.

Many construction schemes are now procured through a two-stage route, which contrasts quite markedly with the familiar single stage tender model.

Instead of inviting contractors to submit a price for the works in a competitive tender and then moving straight to a contract with the chosen contractor, many employers (even where a traditional or design and build Lump sum contract is still intended) prefer to negotiate with contractors and draw on their input earlier in the procurement process.

This alternative method is generally also known as two-stage tendering (see Practice Note: What is two-stage tendering?).

The scope of services to be undertaken by a contractor up to the point the building contract is entered into, together with the parties’ contractual framework, is usually governed by a PCSA—sometimes referred to as a preliminary contract.

What is a pre-construction services agreement?

A PCSA is, in substance, an interim contract that effectively bridges the legal gap until a building contract can be entered into...

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Web page updated on 21/05/2026

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