The JCT suite of contracts, along with most standard forms of construction contract, contain express provisions for extensions of time, allowing for the date for completion to be extended where an event occurs which prevents completion of the works by that date.
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.
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.
JCT contracts offer a comprehensive structure for construction projects, but they are not without their limitations. Recognising the disadvantages of JCT contracts—such as limited flexibility, complex language, and potentially high costs—can help clients and contractors approach these agreements with greater awareness.
The New Engineering Contract (NEC) is a series of contracts designed to manage a project – particularly a civil engineering project – from start to finish, with the aim of preventing costly disputes.
Cons of using NEC contracts: Complexity: NEC contracts can be complex, and it can take time to learn how to use them effectively. This can make them less attractive to smaller businesses.
At a greater level of detail, JCT provides a number of subjective tests for determining if certain events give grounds for recompense to the contractor, whereas NEC generally relies on more objective tests.
Contracts don't need to be in legal language, but they do need to outline exactly who is responsible for what from obtaining various permissions (such as building control approval) to timings, tidying up, materials, insurance and how payments will be made. A written contract will protect you and reduce risks.
It's often the case that claimants derive prolongation costs by determining an average daily rate taken from the preliminaries and/or indirect costs listed in the contract and multiplying that rate by the number of days delay. A claimant must firstly identify the actual days of delay a respondent is culpable.
The JCT HO/O is best for simpler projects, but if you plan to appoint specific companies for tasks like a low energy heating system or specialist glazing, the RIBA DBC is preferable as it accommodates their involvement. The JCT HO/O does not offer this flexibility.