JCT Contracts.

JCT (Joint Contracts Tribunal) contracts are usually made between a person or business and a contractor to deliver a construction project. They set out all the terms and conditions, including each side’s obligations, the costs involved and specifications of the project. They also cover how to resolve disputes in the event anything goes wrong. JCT contracts provide clarity on the roles and responsibilities of each party to try to ensure a smooth delivery of the project.

To understand how a JCT works, it’s best to use an example: Nice Homes Ltd employ Beautiful Builders Ltd to refurbish a block of flats. Nice Homes Ltd require the work to be completed to a tightly controlled specification, which Beautiful Builders Ltd must meet. The work specification breaks down the work into sections and sets out the fees for each section, or stage of the project. The fees attributed to each section of the works are detailed in the JCT contract. At the same time, the parties’ obligations are set out, e.g. with work sign-offs or correcting defects.

JCT contracts are widely used in the construction industry and their benefits include: Protection from common issues. JCT contracts have come about over years, and as such, include the most common construction issues that can reasonably be expected to occur during a project. Industry-standard formatting. Using a standard JCT contract format means both sides can ensure they are ‘speaking the same language’. It also makes it easier for any third parties to understand the project if needed. Clear and fair 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. Dispute resolution. In the unfortunate scenario a dispute does arise in the course of building works, a JCT contract also contains provisions on how to deal with such disputes. Dangers surrounding the industry are addressed. JCT contracts are also used as a means of protecting people and businesses from poor contractors who may not be able to meet the health and safety requirements contained.

Before you produce or review your JCT contract, there are a few risks you will need to consider. 1. Has the JCT contract been properly produced? – If the agreement hasn’t been properly drafted, reviewed or it has not been extensively amended and you sign the contract, you could be agreeing to unfavourable terms and conditions. While many JCT contracts contain standard clauses, these can be varied based on the project. A contract solicitor will ensure you understand the contract’s terms and conditions and are confident that the contract is fair before you sign. 2. Undertaking negotiations – Depending on the type of JCT Contract used, the length can range from 15 to 70 pages. Therefore, it can take a lot of time and money to produce. The time frame and cost of the project will rise when there are disagreements that result in negotiations over the terms and conditions of the contract. Instructing a contract solicitor will help resolve any disputes promptly. 3. Lack of flexibility – When a JCT contract has been produced, it can be challenging for either party to change the terms. They are generally designed around the basis of rights and obligations, instead of collaboration. This may be a good or a bad thing, depending on your position. However, regardless of whether the terms of the contract are favourable for you in the circumstances or not, disputes can lead to project delays. 4. Inaccurate requirements – Any requirements stated in a JCT contract must be clear and accurate. If the person or business employing the contractor gives poor requirements or ancillary documents, it may result in the contractor not satisfying the employer. For instance, if the employer gives the contractor ‘freehand’ over the design, the contractor can legally work to the lowest possible specifications. Our contract solicitors are experienced in drafting and reviewing JCT contracts and will ensure your requirements are accurately reflected.

Quotes for JCT contracts are highly dependent on a few factors: – The size of the project and therefore the coverage required within the contract. – How much negotiation and ‘back and forth’ there is with the other side. – The number of sections in the project and how detailed the requirements are for each stage. Please call us for a better idea of how much your JCT contract may cost.

On average, a JCT contract will take between 3-5 weeks to draft and review. However, this time frame may not be accurate for your particular case. The time it takes for your JCT contract to be drafted depends entirely on a variety of factors. Some of the factors include how far the negotiations over the actual build have progressed and the level of negotiations needed with other parties to reach an agreeable contract.