Navigating Building Contracts: Choosing the Right Standard Form

Navigating Building Contracts: Choosing the Right Standard Form

Learning Objective

At the end of the lesson, you will be able to identify and select the most appropriate standard form of building contract based on time, cost, and quality considerations.

What do you already know about building contracts?

Understanding Standard Forms of Building Contracts

Standard forms of building contracts are pre-prepared contracts that set out the terms and conditions for construction projects. They provide a framework for allocating risks and responsibilities between the parties involved.

Factors Influencing Contract Selection

Time, cost, and quality are the key factors that influence the selection of a building contract. Different projects may prioritize these factors differently, leading to the choice of a specific standard form.

Overview of Standard Forms: JCT

The Joint Contracts Tribunal (JCT) standard forms are widely used in the UK construction industry. They cover a range of construction project types and are known for their balanced approach to risk allocation.

Overview of Standard Forms: NEC

The New Engineering Contract (NEC) suite of contracts is known for its focus on collaboration and flexibility. It is often used for large and complex projects where risk management is crucial.

Case Studies: Time-Critical Projects

For time-critical projects where meeting deadlines is paramount, the JCT standard form with provisions for liquidated damages may be suitable. This incentivizes timely completion.

Case Studies: Cost-Driven Projects

In projects where cost control is a primary concern, the NEC standard form with its emphasis on cost management and risk-sharing mechanisms may be the most suitable choice.

Case Studies: Quality-Focused Projects

For projects where maintaining high quality is the top priority, a bespoke contract or a JCT standard form with detailed quality requirements and inspection processes may be the preferred option.

Which of the following is not a main type of standard form of UK building contracts?

1. NEC3 Engineering and Construction Contract
2. ICE Conditions of Contract
3. JCT Design and Build Contract
4. FIDIC Red Book

Which standard form of UK building contracts is known for its flexibility and adaptability?

1. FIDIC Red Book
2. NEC3 Engineering and Construction Contract
3. JCT Standard Building Contract
4. ICE Conditions of Contract

Which standard form of UK building contracts is widely used for civil engineering projects?

1. FIDIC Red Book
2. ICE Conditions of Contract
3. JCT Design and Build Contract
4. NEC3 Engineering and Construction Contract

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.