Procurement routes for JCT contracts

JCT construction contracts

There are an enormous number of construction procurement routes and there is a JCT contract for most of these routes. The decision to use a particular procurement route and deciding on the appropriate construction contract is a difficult one, see the section Procurement strategies for more information. 

The JCT forms have a long history, which can be traced back to the 1800s. These contracts evolved out of private sector general building work involving architects and builders. To a large extent, today's JCT retains this private sector focus and traditional procurement philosophy and this should always be borne in mind when using the JCT forms.

The JCT forms are largely traditional construction contracts and are the most widely used construction contracts in the UK, accounting for approximately 88% of contracts used on construction projects (RICS contracts in use survey (2010)). The growing prevalence of the NEC3 form may well threaten the dominance of the JCT contract, however, this does not appear to have taken hold yet and the JCT is still the preferred contract for non-government building works. 

JCT contracts are fairly complicated contracts and not always easy to understand even by experienced practitioners. They are frequently criticised for polarising the construction team and encouraging claims. That said, they are tried and tested over a long period of time (and during periods of recession) and are suitable for virtually all projects particularly those in the private sector. Contractors should be able to easily price these contracts and produce keen tenders.

The JCT offers a complete spectrum of construction contracts from the traditional to collaborative working and for small to very large projects. Selecting the appropriate project contract requires considerable expertise and the JCT provides a very useful practice note Deciding on the appropriate JCT Contract 2016.

On isurv, there is detailed information on: