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What is a JCT Contract? Everything You Need to Know

Last updated May 28 2024 | Litigation

by Joseph Navas

by Joseph Navas

Senior Associate

In this article

Benefits of producing a JCT contract.

The scope of JCT contracts can go further than simply roles and responsibilities. In fact, there are several benefits of employing one, including:

  • Standardisation and protection over common issues.

JCT contracts have come about over years, and as such, take into account most issues that can reasonably be expected to occur during a construction project. Most builders and contractors will be 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. The JCT ensures these 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 in the course of building works. In that case, a JCT contract also contains provisions on how to deal with such disputes. These provisions will 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 JCT contracts primarily to have a standard document to rely upon when a dispute arises.

  • Dangers surrounding the industry are addressed.

JCT contracts are also used as a means of protecting employers against poor contractors. The employer can be comfortable in the knowledge that most eventualities are covered by the contract, e.g. penalties for late completion of work or conditions. Furthermore, a JCT contract is designed in a way that the provisions of the agreement are comprehensive and cover most of the dangers which surround the construction industry.

Builder who hasnt signed a JCT contract and is making mistakes with his work

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If you found the contents of this blog useful, please feel free to share it on social media. Sharing our article helps others in need find the same information.