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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 between parties and clearly set out the responsibilities, timelines, and procedures that govern commercial construction projects.
In the UK, JCT contracts are:
Widely used and recognised as the industry standard, particularly for traditional and design-and-build procurement methods.
Trusted by commercial clients, including developers, contractors, local authorities, housing associations, and institutional investors.
Regularly referenced in legal and dispute resolution settings, due to their clarity and established legal footing.
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.
JCT contracts are a good starting point for most construction projects. However, they contain complex legal clauses that can have significant implications if misunderstood and their terms will often need to be amended to suit specific project requirements. Using a JCT contract straight "off the shelf" often does not reflect the parties bargaining strengths and positions and can create problems if key project risks and requirements aren’t properly considered.
The JCT offers over a dozen different contracts, each designed for specific project types and procurement methods. 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 standard contract is generally best suited for larger/higher value projects with significant complexity. Adaptation by an experienced construction lawyer will often focus initially on phased work scheduling, liquidated damages, and specific performance obligations. This form of JCT includes :-
comprehensive phased work provisions.
detailed risk allocation mechanisms.
comprehensive payment terms – including detailed provisions for interim valuations, liquidated damages and final accounts.
strong dispute resolution options.
quality control and performance obligations.
Areas which may not be adequately covered or need bespoke consideration with the JCT standard contract include :-
extensions of time and delay damages.
payment terms.
design liability.
termination – clauses are sometimes expanded to include more detailed procedures or rights for insolvency, non-performance, or project suspension.
insurance – JCT assumes standard insurance arrangements, but these often require adjustment, particularly in mixed-use developments or where tenants/third parties are involved.
third-party rights and collateral warranties – JCT contracts typically require supplemental drafting to properly grant rights to funders, purchasers, or tenants.
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.
Key points to note with this form of JCT include :-
Suitable where minimal design input and responsibility from the contractor is needed
Limited flexibility – Does not cater for complex phasing or significant design changes post-contract.
Weak risk allocation – Fewer provisions for latent defects, unforeseen ground conditions, and employer-contractor risk sharing.
Basic dispute resolution mechanisms – Limited provisions for adjudication and arbitration, potentially leading to difficulties in resolving disputes efficiently.
Lacks detailed variations mechanism .
In many cases yes. However, you should expect any form of construction contract that has lawyers involved for the parties to be heavily amended and negotiated. The specification will invariably be very important and detailed and this is typically separate.
In summary, don't expect to be able to just use an unamended JCT contract and fill in the names and other basic details. This will generally create significant risk.
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.
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Solicitor - Construction & Engineering
Daniel is a Consultant.
He is a Construction & Engineering law specialist and covers the full span of construction matters across a range of sectors including private wealth, office, living, logistics, hospitality & leisure and energy &am...
