As you know, there are different types of JCT contracts and in order to decide the one you need, it may first be prudent to understand exactly what a JCT is and if they are suitable for your needs. A JCT is a standard contract which was created by the Joint Contracts Tribunal to create a fair contracting basis within the construction industry.
If you are new to construction, JCTs can be complex documents. They have specialist terminology and processes that you may not be familiar with. In these instances, it may be simpler to use your terms and conditions of business or a bespoke subcontractor agreement, depending which party you are in the chain.
How Do You Choose the Best JCT Contract for Your Needs?
When looking at what type of contract you’ll need, you should consider your relationship to the project. The majority of JCT works are based around commercial projects and they may not suit you if you are a homeowner. Luckily, the JCT thought of this and have created a simpler document specifically for this purpose! Within the JCT home owner contract it does include a version where you may employ consultants as well as contractors, so you don’t have to manage the project alone.
Where you are working on a commercial basis there is generally a chain of command within such. It often looks a little like Employer > Main Contractor > Sub-contractor. There may even be further trades below these as sub-subcontractors.
One of the things that JCT have created is two separate contracts representing each relationship level, so you have to decide which party you are going to be, whether the employer main contractor or the subcontractor and which contract applies. Often, if you are the main contractor you will need to be included in both the main contract agreement and the subcontract agreement.
If you are the main contractor, it is important to try to get the two contracts linked up on what is generally known as a ‘back-to-back basis’. Essentially, you must ensure that anything you are responsible for, that that is passed down the chain where you have passed on that responsibility – you don’t want to take this on where another person has messed up the works.
There are also additional associated documents such as collateral warranties JCT has created which may be used. This one, in particular, links all of the parties together rather than the doctrine of privity of law being enacted.
Another way that different types of JCT contracts are split are based on the work being undertaken. There are some contracts for full design and build projects, some for repairs and maintenance, some for minor works. You should have discussed your scope of works and decided which applies to you the best. The contract families are all available to view online at https://www.jctltd.co.uk/category/contract-families where they give an overview of their contents. However, if you are still not sure, each type usually comes with a guidance document available to purchase as well as the contract itself.
Does the Contract’s Version Matter?
From time to time, if you are being sent completed JCT contracts for signature, you may receive an older version from businesses who have not updated to the newer versions. It can take some time for businesses to review and adapt to the updates when a new version is released, and you may see 2016 and even 2011 and 2005 versions sometimes. Generally, they do not change a great deal. They are simply updated to include amended laws and regulations.
Choosing from different types of JCT contracts can be a complex decision to make, and the completion of the contracts is still harder. If you are not confident with their use, it may be best to ask an expert for advice and support.
Let BEB Help
If you need expert guidance on choosing the right JCT contract or navigating the complexities of construction agreements, BEB is here to help. Our team specialises in providing clear, practical advice to ensure you have the right contracts in place. Get in touch today to discuss your requirements.