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If you don’t know what a JCT contract is, you’re not alone. Although they are a niche in the construction and building industry, JCT contracts can still prove a mystery to those familiar with what they are.
Between 2019 and 2022, there were over 125,000 complaints regarding builders in England. As if that wasn’t bad enough, the National Federation of Builders (NFB) stated in 2017 that the perception of builders as ‘cowboys’ in the UK is still thriving, and since then it has only been exacerbated.
It’s this image that the JCT contract attempts to correct by publishing consistent guidelines and contracts that builders and contractors alike can adhere to.
Looking to cut to the chase? If you need a solicitor to help you resolve your construction dispute, just call us on 0203 007 5500, or submit a contact form.
What is a JCT contract?
The JCT, which stands for Joint Contracts Tribunal, is a body representing a wide range of interests in the building and construction industries.
Since its founding in 1931, the JCT has produced standard forms of documentation, such as contracts and guidance notes, for use in the construction industry. So, if you ever come across someone referring to a ‘JCT contract’, it is typically about a standard building contract.
These contracts are usually between an ’employer’ and a ‘contractor’ to facilitate a building works project.
They set out all of the relevant terms and conditions, including:
- Obligations of the parties
- Costs involved
- Specifications of the project.
This allows all parties to see exactly what needs doing, when to do it, who needs to do the work and what the costs are.
Crucially, a JCT contract clarifies each party’s roles and responsibilities to ensure a smooth delivery of the project.
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Benefits of producing a JCT contract.
The scope of a contract goes beyond outlining roles and responsibilities. In fact, there are several benefits of employing one, including:
Standardisation and protection over common issues
JCT contracts have developed over many years, and as such, account for most issues that you can reasonably expect to occur during a construction project.
Most builders and contractors are familiar with these issues. So, rather than drafting a new and bespoke contract, these issues come built into the contract template. This offers assurance to both sides of a baseline of risk management.
Recognisable and equitable allocation of risk
Due to the standard formatting of JCT contracts, both parties will typically be familiar with the risks of a project and how they are distributed across each side.
These contracts ensure that risks are split equally across both parties, so the terms are not more favourable to one side than the other.
Dispute resolution
Suppose in the unfortunate scenario a dispute does arise during building works. In that case, a JCT contract also contains provisions on how to deal with such disputes.
These provisions often nominate an arbitrator or adjudicator who can make decisions as to the accountability of the parties. A JCT contract therefore allows the parties to avoid more costly and drawn-out court proceedings.
People within the construction industry use these contracts primarily to have a standard document to rely upon when a dispute arises.
Dangers surrounding the industry are addressed
JCT contracts can offer protection to customers (aka employers) against poor contractors.
The JCT provides the customer with peace of mind, as they know that all eventualities are covered in the contract.
Furthermore, the design ensures that the agreement provisions are comprehensive and cover most of the dangers surrounding the construction industry.
Things to consider.
Although JCT contracts are in place to provide guidelines and offer protection to both parties, they do come with their downsides. Some of these include:
- Lack of flexibility. Changing the requirements of the contract after it’s produced can be tough. Given the standard formatting of JCT contracts, any changes could lead to project delays as unfamiliarity is inserted.
- Inaccurate requirements. Stating requirements accurately is essential. If an employer poorly assembles their requirements, it may result in the contractor’s work not satisfying the employer. For instance, if the employer gives the contractor ‘freehand’ over the design, the employer has given the contractor the ability to make decisions under the JCT contract. As a result, the employer won’t be protected by the contract, if the contractor works to the lowest possible specifications.
- Negotiations. A JCT contract can take a lot of time and money to produce. The time frame and cost of the project will rise when there are disagreements. Disagreements result in negotiations over the terms and conditions of the contract.
- Improperly produced. If the agreement isn’t properly drafted and reviewed or is extensively amended and you sign the contract, you could be agreeing to unfavourable terms and conditions.
Despite these contracts following a standard format, it’s still important to understand what the document includes, especially if you are unfamiliar with using them.
How can a solicitor help with JCT contracts?
As with all contracts, a solicitor will ensure your contract has been properly drafted and reviewed. A misunderstanding or error can cause costly consequences, especially with large building contracts.
A JCT contract review with a solicitor will highlight any clauses hidden within legal jargon, and identify whether the contract is fair. Even if you’re happy with the contract, you will gain the peace of mind that you won’t have any future problems.
Regarding drafting a contract, our solicitors will ensure that your contract is properly written and legally binding. As a result, there will be no errors in the contract and the chance of contestation is minimised. Furthermore, a solicitor will negotiate your JCT contract to ensure it aligns with your desires.
How can Britton and Time Solicitors help?
We know how stressful and costly construction disputes can be. That’s why our initial consultations with our construction solicitors offer you:
- Unlimited time to go through the details of your case and ask any questions
- An overview of your legal standpoint and your available options
- A precise time and fee estimate for your case
To find out more about JCT contracts please don’t hesitate to visit our JCT contract legal services page or call our solicitors directly on 0203 007 5500.
Great post on JCT contracts from Construction solicitors
Thank you for the comment! I’m happy you found our blog on JCT contracts useful.
Help me
Is it a statutory right for a supervisor on working for a government on a government project to be given site allowances every month for maintenance of vehicle and site visits
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Hi – a couple of questions with the JCT contract which I am sure you will know off the top of your head:
1. Does it stipulate that all works should be done to British Building Regs?
2. If the builder “forgets” to invoice for something. What is a reasonable period to include this?
Sorry – these seem rather important points and can’t find them in the JCT.