The most recent edition of the JCT suite of contracts is the 2016 version (now 2024), which introduced changes to the interim payment regime, the use of a common valuation date, and revisions to certain insurance provisions. However, earlier editions are still widely used across the industry.
Among the JCT suite, traditional (or conventional) contracts remain the most popular, and in this article we will explore the main types available and when they are most appropriate. Lets explore JCT traditional contracts.
Traditional / Conventional: Lump Sum Contracts
Standard Building Contract (With and Without Quantities)
Both contracts are based on a lump sum with monthly interim payments unless otherwise agreed.
- With Quantities: The employer’s consultants provide detailed drawings and a bill of quantities specifying the works in terms of quality and quantity.
- Without Quantities: Similar, but without the bill of quantities.
Most appropriate for larger projects designed and specified in detail by or on behalf of the employer.
Intermediate Building Contract (and With Contractor’s Design)
These also operate on a lump sum basis with monthly interim payments. They include provisions for BIM, collaborative working, sustainability, advance payment bonds, performance bonds, parent company guarantees, and collateral warranties.
- With Contractor’s Design: Provides for a Contractor’s Designed Portion.
Most appropriate for projects of simpler content, involving the recognised basic trades and skills of the industry.
Minor Works Building Contract (and With Contractor’s Design)
These contracts use a lump sum with monthly interim payments. The employer, via consultants, must provide drawings, specifications, or work schedules to describe the works.
- With Contractor’s Design: Allows a portion of the works to be designed by the contractor.
Most appropriate for small, straightforward projects designed by or on behalf of the employer.
Repair and Maintenance Contract (Commercial)
This flexible contract allows pricing by fixed sum, daywork, or other rates, often using a Schedule of Rates or hourly charges.
Most appropriate for defined programmes of repair and maintenance works on specific buildings or sites.
Building Contract for a Home Owner/Occupier
Based on the accepted contractor’s quotation (inclusive of VAT), this contract allows for either a single payment on completion or instalments if agreed.
Most appropriate for small domestic works such as extensions and alterations.
Home Repair and Maintenance Contract
The price may be a lump sum or an hourly rate plus materials (inclusive of VAT).
Most appropriate for small-scale, straightforward domestic repairs or maintenance.
Traditional / Conventional: Measurement Contracts
Standard Building Contract with Approximate Quantities
The tender figure is adjusted to an Ascertained Final Sum through remeasurement of the works. Interim payments are monthly unless otherwise stated.
Most appropriate for larger projects where there is insufficient time to prepare detailed drawings and accurate bills of quantities before work starts.
Measured Term Contract
Based on a priced Schedule of Rates, with works instructed via a series of Orders. The employer must:
- List the properties covered by the contract.
- State the contract period and the type of works likely required.
- Estimate the annual value of the works.
Most appropriate for employers with a regular flow of maintenance, minor works, or improvements across multiple properties.
Traditional / Conventional: Cost Reimbursement Contracts
Prime Cost Building Contract
The contractor is paid the Prime Cost of the works, as certified by the contract administrator, plus a contract fee for overheads and profit.
Most often used for urgent work, such as fire repairs or alterations, where an early start is necessary and the full scope of works cannot be defined in advance.
The Format and Structure of a JCT Contract
All JCT contracts follow a standard structure:
- Articles of Agreement
- Contract Particulars (project-specific information)
- Conditions of Contract
- Schedules
With the main sections covering:
- Definitions
- Carrying out the works
- Control of the works
- Payment and variations
- Injury, damage, and insurance
- Assignment, third party rights, and collateral warranties
- Termination
- Settlement of disputes
Conclusion
The JCT traditional contract options remain the backbone of UK construction procurement. From large-scale projects to small domestic repairs, there is a contract designed to suit almost every scenario. Understanding the right one to use is essential for ensuring clarity, fairness, and smooth project delivery.
How we can help
Here at Metroun we can offer you commercial support when working on a construction project. We can tailor the support to suit your needs. Want to be commercial independent? We can provide industry ready templates. Require a full-time QS? We can provide you with highly skilled Quantity Surveyors to manage the commercial aspect on your projects. Need some extra support? We can provide you with guidance and support as and when you need.
