If you are planning a refurbishment, an extension or a programme of repairs, the contract you sign with the builder will decide who carries which risks, how changes are priced and what happens when things go wrong. During 2005 the Joint Contracts Tribunal was reissuing its family of standard building contracts as a 2005 edition, with a more consistent structure across the forms. It was a good moment for owners, landlords and managing agents to think about which contract suits which job.
Why not just use a quotation?
Many smaller jobs go ahead on a builder’s quote and a handshake. That works until there is a dispute about what was included, a delay, or a disagreement over extra work. A standard form contract sets out the basics clearly:
- what work is to be done, and to what standard;
- the price and how it can change;
- start and completion dates, and what happens if they are missed;
- how and when payments are made;
- how defects after completion are dealt with;
- how disputes are resolved.
Choosing the form
The JCT publishes several forms aimed at different sizes of project. In broad terms:
- Minor works forms suit simple, smaller projects of short duration, where the work is clearly defined by drawings and a specification and the employer has a contract administrator.
- Intermediate forms suit larger or more complex work where more detailed provisions are needed, for example for named subcontractors or more involved procedures.
- Standard forms suit large or complex projects, often with bills of quantities.
Using a form that is too complicated adds cost and paperwork. Using one that is too simple leaves gaps when the project is not.
The contract is only as good as its administration
Most JCT forms assume that someone, often a building surveyor or architect, acts as contract administrator. That role includes issuing instructions, valuing work, certifying payments, dealing with delays and certifying completion. It needs to be done fairly between employer and contractor, and in line with the contract.
Our advice
Agree the scope clearly before tendering, choose a form that matches the job, and appoint someone to administer it. When a new edition comes into use, make sure everyone on the project is working from the same version.
See our Contract Administration service, and how we later took a contaminated fuel station site to thirteen new homes under contract administration.