Which JCT Contract is Right for My Project?
The JCT publishes a details guide as to which of its many different types of contract might be suitable for any particular project.
This post is not a substitute for reading and understanding that guide, or for obtaining and following professional advice, but it may give you an idea of where to start.
If you need help understanding the different types of JCT contract, or advice as to which might be most suited to your project, contact Hamshaw today.
What follows is a summary of some of the JCT contract types, their potential uses, administrative requirements, and key features to help in selecting the appropriate JCT contract. This is not a full list - there are many other types of JCT contract (and other standard form contracts) which might be more suitable.
Standard Building Contract With Quantities (SBC/Q)
Use: Larger projects with detailed designs.
Details: Requires complete drawings and bills of quantities.
Administration: Managed by an Architect/Contract Administrator and a Quantity Surveyor.
Features: Provides precise cost estimation and allows for appointment of named specialists.
Standard Building Contract Without Quantities (SBC/XQ)
Use: Larger projects with detailed designs but without bills of quantities.
Details: Requires drawings and a specification or work schedules.
Administration: Managed by an Architect/Contract Administrator and a Quantity Surveyor.
Features: Allows for detailed specifications to be priced, similar to SBC/Q but without quantities.
Standard Building Contract With Approximate Quantities (SBC/AQ)
Use: Larger projects with a need for early commencement before complete design.
Details: Uses approximate quantities subject to remeasurement.
Administration: Managed by an Architect/Contract Administrator and a Quantity Surveyor.
Features: Allows for an early start with subsequent detailed design.
Prime Cost Building Contract (PCC)
Use: Projects requiring an early start where full design isn't yet possible.
Details: Based on estimated costs with the actual Prime Cost determined during construction.
Administration: Managed by an Architect/Contract Administrator.
Features: High-risk for the employer with a fee-based contractor payment structure.
Design and Build Contract (DB)
Use: Projects where the contractor handles both design and construction.
Details: Employer provides requirements; contractor develops and completes the design.
Administration: Managed by the contractor, often with an Employer’s Agent.
Features: Single point of responsibility for design and construction.
Major Project Construction Contract (MP)
Use: Large-scale, complex projects with experienced contractors.
Details: Employer provides detailed requirements; contractor completes design and construction.
Administration: Managed by the contractor with oversight from an Employer’s Representative.
Features: Suitable for experienced parties with significant risk-sharing.
Management Building Contract (MC)
Use: Large projects needing early site start with ongoing detailed design.
Details: Management contractor coordinates works contractors.
Administration: Requires a full professional team including an Architect/Contract Administrator and Quantity Surveyor.
Features: Allows for early start and parallel design and construction.
Construction Management Appointment (CM/A)
Use: When a construction manager oversees project execution.
Details: Employer contracts directly with trade contractors.
Administration: Managed by the construction manager acting as the employer's agent.
Features: Suitable for projects needing separate trade contracts and sectioned work.
Constructing Excellence Contract (CE)
Use: Projects emphasizing collaboration and integrated team approach.
Details: Allows for lump sum or target cost with collaborative working features.
Administration: Encourages risk-sharing and performance measurement.
Features: Suitable for partnering and collaborative projects with a focus on efficiency and risk management.
Constructing Excellence Contract Project Team Agreement (CE/P)
Use: Supports the Constructing Excellence Contract for collaborative team integration.
Details: Multi-party agreement for risk/reward sharing among project team members.
Features: Enhances collaborative behavior and integrated team performance.
Framework Agreement (FA)
Use: For employers seeking long-term relationships with suppliers for continuous improvement.
Details: Used in conjunction with other JCT contracts to establish ongoing collaborative relationships.
Features: Focuses on efficiency and long-term value through sustained partnerships.