JCT contracts - suitable for your project?

What are JCT contracts?

JCT contracts are a range of standard forms of building contracts produced by the Joint Contracts Tribunal (JCT), one of the UK's most established and influential organisations in construction law.

JCT contracts are designed to fairly allocate risk. They are particularly common in mid to large scale commercial projects, where there is a need for clearly defined roles, programme management, and cost control mechanisms. In almost all development and construction projects we work on, where a JCT contract is the starting point, it will be quite heavily adapted and negotiated by lawyers for the parties. Consequently, JCT template terms are a great starting point but don't expect to just download and sign off on a JCT contract.

At Taylor Rose, the most common form of JCT contract we advise on and review tends to be the design and build for development type work, where we act for developers (sometimes including first time developers) and also sometimes contractors (including contractors taking on a larger project than is typical for them).

Types of JCT contract most used

The JCT offers over over 30 contract variants, including not only main contracts, but sub-contracts and supporting documents such as consultant and collateral warranty templates. Among the most commonly used are the JCT Standard Building Contract, ideal for larger projects with a detailed design, the JCT Design and Build Contract, which places design responsibility on the contractor and the JCT Minor Works Contract, suited for smaller projects.

The JCT standard contract

The standard contract is generally best suited for larger/higher value projects with significant complexity. Common adaptation and amendments often focus on phased work scheduling, liquidated damages, design liability, termination and specific performance obligations and insurance.

JCT design and build

Specifically designed for both commercial and residential developments projects where the contractor is responsible for both the design and construction of the works. This contract is suitable for projects where the employer wants a turnkey solution and is willing to delegate significant control over design and construction to the contractor.

JCT intermediate contract

Generally a good option as a starting template for a mid-size projects with moderate complexity. Common contract adaptions for this form of JCT can include adding bespoke terms related to risk allocation, design responsibility, and time extension provisions to reduce exposure to delays and cost overruns.

The intermediate template is not ideal for phased or multi-stage projects as it lacks flexibility, especially for design changes and staging mechanisms and is not generally comprehensive in terms of provisions for adjusting costs due to market changes.

Solicitors for JCT contract review and legal advice

You should expect any form of construction contract that has lawyers involved to be heavily amended and negotiated. The parties involved will commonly not just be the developer and contractor but others such as 3rd party funders and architects, The specification will invariably be very important and detailed and this is typically separate.

We provide expert review and advice on JCT standard form contracts, adapting the standard forms to comprehensively reduce risks and include key project requirements and appropriate risk allocation

Key areas we focus on and possibly enhance or adapt are :-

• Risk Allocation - including liability and indemnity.

• Performance Standards - warranties, indemnities, and quality assurance requirements.

• Payment Terms - milestone payments, retention, and fluctuation provisions.

• Dispute Resolution - adjudication and arbitration clauses

• Specifications - to avoid ambiguity in scope and quality expectations.

For tailored advice, drafting or review of JCT contracts and necessary adaptations, contact our construction law team.