JCT contracts suite

The Standard Building Contract comes in 3 forms:

• Standard Building Contract with Approximate Quantities 2016 (SBC/AQ);
• Standard Building Contract with Quantities 2016 (SBC/Q); and
• Standard Building Contract without Quantities 2016 (SBC/XQ).

Each of the above forms includes provisions for the contractor to provide design if required (called the 'contractor's designed portion' which must be included in the contract if required) although this should be limited to discrete parts of the works such as the piling or M&E works. Note that there is a design submission procedure in Schedule 1. This is not a Design and Build Contract.

The above forms are also available without the contractor design provisions.

The Standard Building Contract is a modern and sophisticated construction contract that can be used on a wide variety of projects. This form is probably not suitable for a project with substantial substructure work, excavation and earthworks where a civil engineering contract may be more appropriate. The Standard Building Contract, as a rough guide, is suitable for contracts of value £1 million upwards but with 87% of the instances of this contract’s use being below £2 million.

The 2009 revision 2 form introduced a Schedule 8 'Supplemental Provisions' that reflected the principles of the Achieving Excellence in Construction (AEC). These remained in the 2011 version. These supplemental provisions are incorporated via the contract particulars and practitioners need to give serious consideration as to whether to incorporate these provisions as they can mean substantial additional work for them and their client as well as the contractor. This in turn could affect project costs and the contract sum.

The 2016 contract now incorporates Supplemental Provision 9 in Schedule, which is for the Named Specialist update (previously published separately).

Measurement rules in the JCT Standard Building Contract 2016 are defined as the RICS new rules of measurement, unless otherwise stated.

This contract requires considerable experience to operate and understand it effectively.

Contract selection

The Standard Building Contract is appropriate for construction works that:

• are large and/or complex in nature;
• the design is provided by the employer. Where the contractor is to provide design then the employer is to provide employer's requirements stating his or her requirements for design and construction;
• the works value is in the region of £1 million upwards;
• are to be administered by an architect/contract administrator (CA) and a quantity surveyor.

Contract price

The SBC/Q and SBC/XQ are essentially lump sum contracts based on drawings, specification and work schedules. If there is a bill of quantities, schedules of rates or contract sum analysis then these rates and prices are for valuing variations.

The SBC/AQ is a re-measurement contract. The bills of quantities are to be prepared in accordance with NRM2.

There are valuation rules for variations (section 5) and provisions for loss and expense (section 4). If a price cannot be agreed on such extras, then the contract administrator can make a final decision on the matter and the contractor will have to accept this. If the contractor is unhappy with the contract administrator's decision then he or she will have to take the matter to dispute resolution (which would normally be adjudication).

Contract set-up

A Standard Building Contract should have a structure along the following lines:

Contract administration

As discussed some of the key requirements for successful JCT contract administration are established at the pre-contract stages of a project and these include:

• a complete design (vital for JCT contracts) or employer's proposals (for Design and Build Contracts);
• tender practices that establish a fair price for the construction of the works;
• a realistic contract period for the completion of the works; and
• an agreed contract document that is ready and executed before the start of the works.