JCT Contracts explained in simple terms, hopefully 

JCT Contracts (Joint Contracts Tribunal) are simply a standard for of contract used in construction of buildings.

Usually, they are between you, the client, and the main contractor, the builder or developer. 

So far so good?

But a simple summary from us at Veritas Surveying Ltd does not cover all aspects of JCT contracts and encompass where they are needed so let’s expand.

There are three main types of JCT contract - for smaller projects:

1. JCT Homeowners Contract
2. JCT Minor Works Contract 
3. JCT Intermediate Contract 

These may cover smaller construction projects like a simple commercial project or a home extension or a full new build with a value up to £250,000. Which one you choose is largely down to the scale of the project.

But head beyond these into larger multi-million projects and JCT contracts change

1. You may opt for an Intermediate Building Contract, covering works of medium complexity with a contract sum of up to £1 million.
2. A Major Works Building Contract typically has a contract sum of over £10 million and would be adopted in larger commercial and residential construction work. 
3. A Standard JCT Building contract has a typical contract sum from £1 million to £10 million and is often highly complex. 

Common features of JCT Contracts

They do though retain many common features with the three aforementioned contracts and should include: 

• Articles of Agreement
• Contract Particulars
• Conditions of Contract
• Schedules

Each of these four primary sections will then name contain the usual subsections of definition, control and carrying out of works, payment schedules, insurance, injury, damage as well as warranties, assignment, third party rights and termination with settlement of disputes.

Definitions to one side, do you need a JCT contract?

The answer of course is usually yes. 

By not putting a JCT contract in place, you are opening yourself up to risk. A similar scenario is choosing not to have contents insurance at home and finding a burglary leaves you out of possessions and out of pocket. 

We recommend that you put in place a JCT contract. You don’t have to and your decision may hinge on the relative complexity and cost of the construction. They first appeared in 1931 and are useful for protecting the client and contractor in writing in case of delays, disputes or unexpected price hikes. Common law supports many of the clauses of a JCT contract.  

How we can help

We are a niche small private quantity surveying practice, specialising in construction disputes, claims, cost management and expert reports. We also help to run live projects and are fully aware of risks based on our works with others. Everyone on our team has the relevant professional qualifications and experience required to give you the very best service and advice to enable you to maximise your position.

If you need an expert Quantity Surveyor in Manchester or beyond, we would be delighted to talk to you.

Contact us today.