Jct Contract Documents

By Author: Riya Siva
Total Articles: 7
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JCT Contract in the construction industry has set an effective way to handle and manage the construction project process without facing too many obstacles. The Joint Contract Tribunal offers different types of standard forms to document a construction project contract. Construction developers and contractors using the JCT Contract while planning a project can benefit a lot by using the standard forms of contracts. The contracts are easy to handle and it avoids disputes and risks in the construction process. Many professionals and individuals who are aspiring to become an expert in the construction field learn the ways of understanding how to use a JCT Contract.

The importance of writing a contract in a construction project

A contract is a mutual understanding recorded in document form, which is written to protect the interests of both parties involved in a construction project. When two parties are involved in working in a project, then it is best advised to write an agreement ensuring the obligations to each ...
... other and how to progress with the project. Contracts define agreements, expectations, risks and the responsibilities towards each other. When a construction developer and a contractor plan together to work on a project, then they should ensure that every detail of the project process is understood and conducted according to each others consent. The reason why each party should hold responsibilities towards each other is due to the high risk factors involved in building a project. The construction industry is known to be one of the most high-risk sectors in the economy. There are many instances where projects face challenging situations while progressing. Writing a contract will help to avoid most of the issues which can cause a considerable loss to the project investments. Many professionals use consultants while drafting a contract for the project, by hiring an expert to write the terms on the documents, both parties can come into an understanding before signing the agreement. Compared to an oral agreement in a working environment, written contracts bring confidence while working with each other. Each party will clearly understand their responsibilities and make sure to carry it forward with the agreement they have drawn. Contracts also ensure the safety of each party in the construction site.
There are different types of construction contracts which can be useful depending on the project type. Some of which are: Commercial Contracts, Domestic Building Contract, Special Contract, Subcontract agreement, and Cost Plus Fixed Fee Contract. These contracts are maintained to build trust, effective working environment, divide responsibilities and to reduce risks and disputes in the construction site.
Another important benefit of writing a contract in a construction project is that the written documentation can be handled with the law if any disputes or problems arise during the process. Once again, the parties will be protected throughout the process.

What does a contract emphasise?
• Risks in price
• Cost-price contracts emphasize on the cots overruns and guaranteed maximum prices
• Who is responsible when there is a delay in time
• Damage caused to the project due to natural reasons and who will take responsibilities for the delay.
• Issues in the Design
• Funding Issues
• Regulation Risks and Approvals related to the project
• Unexpected conditions
• Thrid part damage
However, these emphasis related to the project can vary according to the project type and the duties in the process.

What should be present in a contract?
• Project Costs
• Any changes related to the construction of the project
• Order of performances
• Time of performance
• Delays due to damages
• Payments
• Terms and conditions
• Warranty
• Addressing through notices
• Disputes handling and managing authority
• Handling liens
• Managing labour and their rights in the working environment

Proceeding with a JCT contract

When a large scale project is being planned, there are many professionals involved in the process.
• The Developer (Owner)
• General Contractor
• Commercial Manager
• Construction Manager
• Site Manager
• Quantity Surveyors
• Architects
• Structural Engineers
• Construction Workers
When the project has many sections, the construction hierarchy will be enormous. There will be multiple contracts on a large scale project. The most common ones are between the developer and contractor, the developer and commercial manager. For instance, If the developer hires a contractor to manage the entire process, then they will handle, manage and oversee the whole process of the construction project with the assigned team. But if the developer decides to hire a different professional commercial manager to overlook the progress happening under the contractors watch, then there is a need for a separate contract. A JCT contract with details on the documents can help a developer to handle the contracts without any difficulties. The Joint Contract Tribunal offers and delivers many different kinds of contracts which can be helpful to progress with a project. The JCT also provides learning opportunities for professionals who wish to understand the ways of managing a contract.

How to use a JCT Contract?