Many different parties from the construction and building industries are represented on the Joint Contracts tribunal (JCT). Since its inception in 1931, JCT has developed standard contract and guide note formats for use in commercial transactions worldwide. Hence, the term “JCT contract” is commonly used to refer to a standard kind of construction agreement.
JCT contracts are commonly used by both “Employers” and “Contractors” to facilitate the completion of a construction project. The terms and conditions define every aspect of the project, from who is responsible for what to the final price. Doing so ensures that all parties are on the same page with regards to the project’s intended outcomes, expected timeline, available resources, and financial obligations.
The roles and responsibilities of all parties are clearly defined in a JCT contract to ensure the project is successfully completed. In this article, Which JCT Contract, we will delve deeper into the subject.
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What are the different types of JCT contract?
The Joint Contracts Tribunal (JCT) creates a wide variety of contracts, from those made for use on straightforward house extensions to those made for the most intricate multi-million pound projects.
The most frequently used contracts are the JCT Standard Building Contract, Design and Build Contract, and Minor Works Building Contract.
JCT Standard Build Contract
The Standard JCT Contract is tailored to larger projects or complicated projects that incorporate a high level of building services or expert work, and it is written to include clauses allowing:
- the contractor to design individual components of the project.
- a plan for breaking up the work into manageable chunks to ensure its completion.
- qualified experts to be specifically mentioned in the agreement.
The Employer is responsible for designing or detailing the works under the Standard JCT Contract and must supply necessary drawings and paperwork to establish the nature and quality of the project. Whether the contract is to be a flat fee or subject to remeasurement, the Standard JCT Contract comes in a number of different variations.
Large, complicated commercial construction projects, especially those where the Employer places a premium on specification and design, tend to use the Standard Form.
JCT Design and Build Contract
Whenever the Contractor is expected to handle both the design and building of a project, the JCT Design and Build Contract is the appropriate legal document to use. When this is the case, the Employer will provide the Contractor with specific instructions, also known as the Employer’s requirements, and the Contractor will be paid a single, predetermined sum to carry out the detailed design and construction of the Employer’s requirements.
Under this type of contract, the Employer only has to pursue the Contractor if a problem is discovered, rather than having to determine if the defect is the result of poor workmanship or poor design by one of the many consultants involved.
The Design and Build Contract is often used in the commercial sector, especially where the Employer prioritises cost predictability and timeliness of completion.
JCT Minor Works Contract
A project is a good fit for the JCT Small Works Contract if:
- the nature of the work is straightforward.
- work specifications are developed by or on behalf of the Employer.
- Drawings, a specification, and/or work schedules may be provided by the Employer to adequately specify the scope and nature of the work to be performed; and
- A designated Architect/Contract Administrator will be responsible for overseeing all terms and conditions.
The Contractor can take part in the design process for the works by signing a Small Works Contract that includes such terms. Small, straightforward commercial undertakings are the norm for Minor Works Contracts.
Which JCT Contract should I use?
Which contract is best depends on the specifics of the project at hand, as well as the optimal procurement strategy for achieving the project’s goals in terms of time, money, and quality. After that, you should think about whether the conditions within the standard suites need to be modified to fit your project’s particular demands.
As the final contract will specify the parties’ roles, rights, and obligations for the project, procurement, contract selection, and writing contract revisions are crucial tasks. If anything goes wrong, it could have serious consequences for the project or for one of the parties involved.
How we can help
We have a proven track-record of helping clients deal with JCT contracts. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner and support and advise you with all the negotiations. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
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Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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