Choice of contract

18 October 2016

I am finding the array of different contracts offered by JCT very confusing. Also the fact that they are only just becoming digital!

What type of contract is recommended for self builders who have gone to tender and appointed a builder for the main building shell, with the option to procure additional work in future? The Management contract looks the best fit but is only available digitally via a subscription at a high cost, are the minor work or intermediate contracts perfectly adequate? Our architect has advised that having paper copies of contracts is not advisable, hence the desire to have a centrally maintained digital copy.

Answers

The JCT suite of contracts are really very good however only the Minor Works (MW) and Homeowner contracts (HOC) are likely to be relevant to a self-builder and possibly the Intermediate (IC) if the project is particularly large. However, these contracts tend to assume that you will be appointing one main contractor and, in the case of the MW or IC, that you will have a Contract Administrator (CA). You mention having gone to tender for the main building shell with your intention to procure more works thereafter and so to appoint a management contractor under the Management Building Contract (MBC) could be a possibility although this does tend to be for larger works. You may find that it gets quite complex using the MBC or indeed another option, the Construction Management route (CM), where sub-contractors will be in contract directly with you but procured by the construction manager.

Personally, I think paper copies are fine but increasingly digital copies are easier to copy and distribute. But the final type of contract should be selected following specific and individual advice to you by a professional (Architect or Surveyor) who understands what level of design has already been completed, what is left to procure, how much of that is design and how much is simply specification choices and who will be paying who as the contract gets delivered. For average contract sizes you might be best using the MW (with design if appropriate) for the tendered shell and then the HOC for each sub-contractor thereafter. Your attitude to risk is important here as well as, although breaking up a contract into component parts can appear attractive from a flexibility perspective, it does tend to transfer risk back to the client for potential project delays and/or cost increases.

Tim Doherty (Build It Expert)

8 November 2016

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