The Joint Contracts Tribunal (JCT) suite of contracts, last updated in 2016, remains a cornerstone in the construction industry, guiding the relationships and responsibilities between parties involved in construction projects. In this post, we will explain the design & build JCT contract options. The traditional or conventional JCT contracts are still by far the most used contracts
Major Project Construction Contract
Major Project Construction Contract: The price is based on a lump sum with monthly interim payments, based on a price and document.
This contract is for use on major projects where the employer and the contractor regularly undertake such projects and have appropriate in-house contractual procedures. The contractor assumes more risks and responsibilities than under other JCT contracts.
It is desirable, therefore, that the employer and the contractor, together with their respective advisors and subcontractors, are experienced in detailed risk management and undertaking large commercial projects.
This contract is most appropriate for major works where the employer regularly procures large-scale construction work, and where the contractor to be appointed is experienced and able to take greater risk.
The Design and Build Contract
The price is based on a lump sum with interim stage payments or periodic payments, as stated.
The extent of the contractor’s design input can vary considerably. Adequate time and care must be given to compiling the employer’s requirements, and this will normally mean the appointment of consultants by the employer.
In the event of any conflict between the employer’s requirements and the contractor’s proposals, the contractor’s proposals are stated to prevail. This contract makes no provisions for an independent contract administrator; the employer is directly responsible for issuing statements or instructions as required under the contract.
This contract is most appropriate where detailed contract provisions are necessary, and employer’s requirements have been prepared and provided to the contractor, and where the contractor is not only able to carry out and complete the works but to complete the design also.
