Which JCT Contract should I use on my project?

As no two projects are the same, we often have the question over which is the most suitable JCT contract to use. JCT (the Joint Contracts Tribunal Limited) provide a wide range of different contracts to suit the diverse needs of the UK construction industry.

To decide on the correct contract for your project you need to consider many factors as set out here:

Nature and scope of the project: For example, are the works small or large scale? Are the works complex? Are specialist subcontractors required? Do the works need to be phased?

Start and completion times: Is having the shortest possible programme time the priority? Is there a specific completion date required? Is there enough time to develop the design before work starts on site?

Certainty of final cost: Is it best that there is an agreed fixed lump sum, or would a variable price be ideal?

Likelihood of design changes: Is it likely there will be design changes throughout the process? Will approximate or provisional quantities be required?

Chosen method of appointing a contractor: Would it be ideal to hire a contractor to design part of the works? Is there a preferred contractor you would like to negotiate a price with, or do you want contractors to tender competitively?

Risk appetite: Could there be sections of the works which would be described as risk items? Are you looking for the contractor to shoulder an amount of risk and are you prepared to pay for that?

Quality, Time, Cost: Is there a particular aspect of the project that outweighs all others in terms of its importance to you.

The range of JCT Main Contracts available:

Standard Building Contract with Quantities (SBC/Q)

This form is used for larger works where the employer provides the contractor with drawings and bills of quantities to define the quality and quantity of work. Price is based on a lump sum with interim payments made monthly. This also allows for portions of the work to be completed with the contractor’s design. This is suitable for both private and public sectors.

Standard Building Contract without Quantities (SBC/XQ)

Another form often used for larger works. This form is almost identical to the SBC/Q mentioned above – but instead of having bills of quantities to define the extent of work, the employer must provide drawings and a specification or work schedule. This is used where the degree of complexity is not enough to warrant a bill of quantities being produced. It is suitable for both private and public sectors.

Standard Building Contract with Approximate Quantities (SBC/AQ)

This form is used for larger works, where the client will administer drawings and bills of quantities with approximate quantities, that will be subject to remeasurement. This is used where there is not enough time to prepare drawings with the detailed necessary for accurate bills of quantities. It is suitable for both private and public sectors.

Intermediate Building Contract (IC)

This form is used where works are straightforward in nature and features the basic trades and skills of the industry. The works will be designed by or on behalf of the employer, meaning they will need to provide the contractor with drawings and bills of quantities and a specification. This is not suitable where it is required for the contractor to design a portion of the works. The Intermediate Contract is more detailed than the Minor Works Building Contract (MW) but is less detailed than the Standard Building Contract (SBC). This form does allow for works to be carried out in stages and can be used by public and private clients. It is not suitable for where the contractor is required to design any portion of the works. It is suitable for both private and public sectors.

Intermediate Building Contract with contractor’s design (ICD)

As above, this contract is suited for works that are not complex, and only feature the basic trades and skills expected in the construction industry. The ICD form differs from the IC because it allows the contractor to design a portion of the works. It must be said however, said this form should not be used as a Design & Build contract. It is suitable for both private and public sectors.

Minor Works Building Contract (MW)

This form is geared for where works are simple in nature and do not require a bill of quantities to outline the works. Contractor’s will price the works from a specification provided by the client. The form is not to be used where the contractor is required to design a portion of the works. It is suitable for both private and public sectors.

Minor Works Building Contract with contractor’s design (MWD)

Similar to the MW contract as it is useful for simple works only, but also allows for portions of the work to be designed by the Contractor. Should not be used as a Design & Build contract, or where a Bill of Quantities is required. It is suitable for both private and public sectors.

Major Project Construction Contract (MP)

Suited only to major works where the employer and contractor are both experienced in such large scale projects. The contractor must be able to shoulder taking greater risk than most other JCT contracts would put on them. The employer will notify the contractor of their requirements and the latter will then complete the design and construct on that basis. The employer will hire a representative to carry out the functions of the employer under the contract.

Design and Build Contract (DB)

Used where the employer will outline their requirements and the contractor will then complete the design and carry out the works for a fixed sum, variable only by Changes instructed by the employer. The employer must hire a representative to administer the contract conditions. It is suitable for both private and public sectors.

Management Building Contract (MC)

This form is suitable for large-scale projects which require an early start on site. The works are designed by or on behalf of the employer – but it was not possible to complete the design as much of it may be of a specialist nature. The employer is required to provide the Management Contractor with detailed drawings and a specification. The Management Contractor does not actually carry out any construction work. They are paid by the employer to manage the project and they will hire contractors to carry out the works. It is suitable for both private and public sectors.

Measured Term Contract (MTC)

The MTC is appropriate for Employers who have a regular flow of maintenance and minor works which they want a single contractor to carry out over a set period. The works will be instructed under a single contract and works is valued by quantifying what is carried out against an agreed schedule of rates.

Prime Cost Building Contract (PCC)

This form is used where there is not sufficient time to allow a full design of the works before a contractor starts on site. Used where an early start on site date is required and detailed contract provisions are necessary. It is usually adopted for urgent repair works such as if a building is destroyed by fire or water damage. This contract does have a high risk for the employer relating to cost and depends on the contractor to carry out works quickly and economically. The contract does have provisions requiring the contractor to keep the expenditure of Prime Cost to a minimum. It is suitable for both private and public sectors.

Repair and Maintenance Contract (Commercial) (RM)

This contract is for commercial projects only, not domestic. This form is only suitable for projects involving the maintenance and repair of a commercial property. It is not to be used for maintenance over a fixed period.

Building contract for a homeowner/occupier who has not appointed a consultant to oversee the work (HO/B)

This form of contract is drafted in plain and simple English and is used for domestic projects such as extensions and alterations, where work is to be carried out for an agreed lump sum (inclusive of VAT). The contract is based on drawings and/or a specification. This form is only suitable where a consultant has not been appointed to oversee the works. This means the client (homeowner) will deal directly with the contractor.

Building contract for a homeowner/occupier who has appointed a consultant to oversee the work (HO/C)

As above, this form is drafted in simple terms for the benefit of the customer and is suited to domestic projects like extensions and alterations. This differs in that the client (homeowner) will appoint a consultant who will administer the details of the contract and will deal with the contractor on their behalf. Price to be inclusive of VAT.

Home Repair and Maintenance Contract (HO/RM)

This form is drafted in plain and simple English and is suited for small scale home repairs and maintenance. The client will deal directly with the contractor. Price to be inclusive of VAT.

A good private practice QS should be able to guide you through these available contracts prior to your decision on the best route forward.

Amending Contracts:

Do note, it is generally advised by JCT that no ad-hoc amendments are made to their contracts. Where a modification is deemed necessary, the advice of a professional should be sought. It is generally accepted that all JCT contracts are fair and equally balanced between both parties to the projects they are used for, so you shouldn’t see it as essential to make any adjustments or alterations. That being said, expert solicitors may well want to persuade you to alter contracts more in your favour and protect your interests further.