Contract Practice: JCT - Deciding On Which JCT Contract to Use Flashcards
When would you use JCT Minor works?
- Projects short in duration, small and simple
- Guidance is for value up to £150k
- Short easy to follow contract
- Lump sum form, design should be completed prior to execution
- Not as comprehensive as others - limited claims provisions, no fluctuations
When would you use JCT Intermediate?
Where proposed building works are of simple content involving the normal, recognised basic trades and skills of the industry, without building service installations of a complex nature or other complex specialist work
- Usually for values between £250k to £1 mill
- Recommended for project that do no exceed 1 year duration
When would you use JCT Standard with quants?
Larger works designed and/or detailed by or on behalf of the employer, where detailed contract provisions are necessary, and the employer is to provide contractor with drawings and with BOQ to define the quantity and quality of the work
- Usually for contracts plus 1 mill
- Work already designed
- Where there is a BoQ
- Lump sum form
- Contractor risk limited to price only
- Employer takes risk of errors in bill
When would you use JCT Standard without quants?
Larger works designed and/or detailed by or on behalf of the employer, where detailed contract provisions are necessary, and the employer is to provide contractor with drawings and with either a specification or work schedules to define adequately the scope and quality of the work and where the degree of complexity is not such as to require BOQ
- Work has been designed prior to contract but no bill
- Contract docs will include drawings, spec and schedule of rates
- Lump sum form
- Contractor risk includes both price and quantity
When would you use JCT Standard with appox quants?
Larger works designed and/or detailed by or on behalf of the employer, where detailed contract provisions are necessary, and the employer is to provide contractor with drawings and approx BOQ to define the quantity and quality of the work, which are to be subject to re-measurement as there is insufficient time to prepare the detailed drawings necessary for accurate BOQ
- Re-measurement form of contract
- No contract sum
- Used where design is not completed at time of execution
- Approx BOQ has been prepared
- Construction is wished to commence prior to design completed
When would you use JCT Major Works?
- Usually for contracts plus £30mill
- Projects that are significant in both size and quantity
- Generally for clients that have their own in house contractual procedures
When would you use JCT D&B?
Where detailed contract provisions are necessary and employers requirements have been prepared and provided to the contractor. The contractor is not only to carry out and complete the works but also complete design
- When contractor responsible for design and construction
- Similar complexity to standard building contracts
- Contractors proposals form basis of the contract
- No mention of an architect or QS
When would you use the prime cost contract?
- Broadly based on the provisions of SBC
- Contractor is paid cost of carrying out the work plus fee to cover OH&P
- Might be used if another contractor is hired to complete the works after an insolvency
- Employer bears majority of the financial risk
- Total cost is not known until completion
When would you use a JCT Measured term contract?
- Where employer requires maintenance / minor works to be undertaken on reg basis over defined period of time on defined list of properties
- Contract agreed on schedule of rates for carrying out certain types of work
- Can be let on a fixed or fluctuating price basis
- Contains a break provision for terminating the contract early
When would you use JCT Construction management agreement?
- When construction management procurement route is picked
- When employer wants early starts on site
- Construction management trade contract also used as the standard form for the agreements between employer and trade contractors
