JCT Intermediate Building Contract 2011 - what's new?

Why would I use this contract?

The IBC is appropriate for traditional building procurement methods, where the price is to be a lump sum and payment to be made periodically (by default, monthly) by the employer. It permits two pricing methods:

  1. pricing by the contractor of bills of quantities / a specification of works / work schedules; or
  2. the contractor quoting a lump sum, supported by a schedule of rates or a contract sum analysis.

The JCT has designed the contract for use where:

  • the nature of the building works is simple, involving the normal, recognised basic trades and skills of the industry (no complex specialist work or service installations);

  • the works are designed by or on behalf of the employer;

  • at the tender stage the employer will provide a set of drawings together with another document (either a bill of quantities / work schedule; or a specification). That document will usually be priced by the contractor or, if a lump sum is quoted, they will supply a schedule of rates or a contract sum analysis.

     

  • an architect/contract administrator and quantity surveyor are to administer the conditions; and

  • the contractor will be responsible for all sub-contractors, whether chosen by the contractor or named by the employer (however the contractor is not responsible for any design carried out by a named sub-contractor designated by the employer).

The IBC can be used:

  • where the works are to be carried out in sections;
  • by both private and local authority employers; and
  • where provisions are required to cover named specialists.

The IBC is not suitable as a design and build contract. Where, however, it is intended that the contractor should design and build certain elements of the works a separate variant is provided for.

Intermediate Building contract with contractor’s design

The IBC/CD is a variant of the IBC. Its key feature is that the contractor will be required by the employer to design discrete elements of the works. Those elements for which the contractor bears design responsibility are known as the contractor’s designed portion.

The IBC/CD is therefore used in the same circumstances as the IBC set out above, except that while the employer bears overall responsibility for the design, he will designate discrete elements to be designed by the contractor.