JCT contract selection considerations

Contract formation

The formation of a binding, legally enforceable contract that is clear and consistent requires great care and a systematic approach to tendering and contract formation. JCT contracts have a clear structure and the practitioner must endeavour to assemble a contract that has this structure at the completion of the tender process. The contract structure of each of the different forms is discussed under JCT contracts suite.

As a rough guide to contract formation (where a JCT form is to be used), the client or their consultant must prepare tender documents that:

  • identify the JCT contract to be used and any amendments that will be incorporated in to the contract;
  • provide the various project information required by the particular JCT contract (normally drawings, specification, pricing document); and
  • where the contractor is to provide design, a clear explanation of the works to be designed by the contractor.

During contract assemble, the JCT contract structure usually has the following components:

  • JCT contract;
  • JCT contract amendments;
  • pricing document;
  • specification;
  • drawings;
  • programme (optional);
  • BIM.

Lists of qualifications, emails and quotations should not be included in the contract as they may conflict with the JCT contract structure and result in dispute. Tender qualifications should be rejected or the specific project information (the specification, the drawings, etc.) amended accordingly. Often, contracts will include an 'entire agreement' clause such that only the information contained in the contract is to considered as being part of the contract, e.g. any other previous or improperly incorporated discussions cease to exist in the eyes of the contract.

Note that the JCT contract has numerous footnotes that provide guidance on contract formation and these footnotes must be carefully followed. Also note that certain parts of a JCT contract require signature by both parties to the contract in addition to signature on the attestation page.

The tender documents and contractor's submission must be formatted carefully to produce a clear and binding contract document. This must be done by a person experienced in contract preparation. The JCT contract guide for each contract provide a helpful checklist at the end of the guide that will be useful in this contract formation exercise.

The contract should be bound and an executed copy given to the employer, contractor and contract administrator as soon as possible and preferably before the contractor commences the works.

The aim of contract formation must be to faithfully reflect, in writing, the outcome of the tender process and the agreement between your client and the contractor in terms of project time, cost and quality.