JCT contracts facilitate the process of constructing buildings. In simple terms, contracts set out the responsibilities of all parties within the construction process and their obligations, so it is clear as to what work needs to be done, who is doing it, when are they doing it by, and for how much.
Broadly speaking, the JCT contract centres on liabilities and risk in the way a traditional contract would, whereas NEC commands and enables a proactive and collaborative approach to managing the contract. It is critical to understand the details of both contract types to assess their benefits and disadvantages.
The Standard JCT Contract provides for the works to be designed or detailed on behalf of the Employer, and for the Employer to provide drawings and documentation to define the scope and quality of the works.
Contracts 'with quantities' are priced on the basis of drawings and firm bills of quantities. 'Without quantities' means a contract priced on the basis of drawings and usually another document, such as a specification or work schedules.
JCT contracts are written in complex legal language. This makes them difficult to understand without specialised knowledge. The problem with using complex language is that the meaning can be unclear to anyone without a legal background. This can lead to misunderstandings, especially during disputes.
JCT contracts are known for being highly prescriptive. Although the standardised format may provide clarity, it can also limit flexibility. Each JCT contract is structured around a specific set of terms and clauses, which may not suit every project's unique needs or challenges.
JCT does not allow service of the notice by email, whereas NEC allows service via a 'communication system' as defined in the contract. FIDIC does allow notices to be served electronically, but this must be specified in the Particular Conditions. NEC notices must also be sent to the Project Manager.
The JCT Standard Building Contract is designed for large or complex construction projects where detailed contract provisions are needed. Standard Building Contracts are suitable for projects procured via the traditional or conventional method.
Clause 4.11 – In the event of non-payment or non-compliance with the above-mentioned Clauses, the Contractor has the right to suspend works and the process for doing so is explained in this Clause.