JCT, or the Joint Contracts Tribunal, produces a suite of contracts that are widely used by businesses in the construction industry. The contracts, which are tailored to specific project types, are in a standard form, which the parties can adapt to meet their specific needs. JCT contracts can be complex and difficult to interpret, so in ‘JCT clauses explained’, our expert solicitors give a brief overview of the key provisions of JCT contracts.

Construction projects are complex. They usually involve a number of different parties, each with their own ideas about how work should proceed. As a result, disputes are common. Unless a dispute is carefully managed from the outset, it can escalate and threaten the financial position of those involved and the project itself. By seeking expert legal advice from specialist construction solicitors like ours as soon as it becomes apparent that a dispute is likely, you stand the best chance of resolving it before it escalates.

At Altion Law, we offer exceptional legal advice with a commercial focus at highly competitive rates. We have an excellent track record of resolving construction disputes swiftly and cost-efficiently, protecting our clients’ profits and keeping their projects on track.

 

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.

 

Why use a JCT Contract?

Using a standard agreement, like a JCT contract, for your construction project has several notable benefits, including the following:

  • Standard contracts minimise the costs involved in producing documentation.
  • Standard contracts save the parties valuable time, allowing them to get on with their project as quickly as possible.
  • In its standard contracts, JCT has considered and addressed the common pitfalls experienced by businesses in the construction industry, thereby reducing the scope for disagreements between the parties.
  • Standard contracts allocate risk in a fair and accepted way.
  • JCT has extensive experience of relationships in the construction industry and has tailored the terms of its contracts accordingly.
  • A cross-section of those working in the construction industry are involved in the production of JCT’s suite of contracts, so all their interests are taken into consideration.

 

Key JCT Clauses Explained

Some of the key provisions of a JCT contract include the following:

  • Articles of Agreement.

The Articles of Agreement include the parties’ details, recitals stating the nature of the project, and information about the works, including the scope and the contract price.

  • Contract Particulars.

The Contract Particulars sets out project-specific information, including the completion date and liquidated damages.

The schedules contain any additional provisions the parties wish to include, such as a design submission framework and insurance options.

JCT contracts provide for flexible payment options. Payment terms usually include matters such as interim payments, valuations of the work carried out, pay less notices, and final dates for payment.

  • Control of the works.

This provision deals with how the works are to be carried out, including who has control and approval of them.

  • Dispute resolution.

Disputes are rife in the construction industry. JCT contracts offer several dispute resolution methods, including mediation, adjudication, arbitration, and litigation. Adjudication is a statutory right and offers parties to a JCT contract a swift, cost-efficient way of resolving disagreements and ensuring the project remains on track.

JCT contracts contain detailed provisions dealing with when the parties can terminate the agreement and the consequences of so doing. For example, the parties may be able to terminate if the other becomes insolvent or persistently breaches the contract.

If you wish to terminate your JCT contract, expert legal advice is essential. If you terminate when you are not entitled to do so, or do not follow the correct procedure, you may be in breach of contract and liable to pay damages to the other party.

  • Extensions of time.

Delays are common over the course of a construction project, due to issues such as labour or materials shortages. JCT contracts include provisions dealing with what happens when delays occur in specific circumstances.

  • Liquidated damages.

Liquidated damages in JCT contracts are pre-agreed sums payable by the contractor to the employer for any delays in completion of the project for which they were to blame. Liquidated damages are intended to compensate the employer, not punish the contractor, and are fixed, meaning the employer does not need to prove the extent of their losses. That said, the amount must be a genuine estimate of the employer’s loss to be enforceable. The liquidated damages in JCT contracts are stated in the Contract Particulars.

The above are just a few of the clauses included in most standard JCT contracts. If you need assistance with understanding the clauses of your particular agreement and your rights and obligations under it, or with any other aspect of construction law, our expert team is ideally placed to assist.

 

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.