A JCT contract is a standard form of contract for construction projects in the United Kingdom. The Joint Contracts Tribunal (JCT) produces these standard forms of contract, guidance notes, and other standard documentation for use in the construction industry. The JCT contracts set out the responsibilities of all parties involved in the construction process and their obligations, so it is clear what work needs to be done, who is doing it, when they are doing it, and for how much. The JCT contracts are designed to minimize the transaction cost of entering into a contract and provide benchmark provisions in standard form contracts.
JCT contracts are usually made between an "employer" and a "contractor" to facilitate the process of delivering a building project. The scope of JCT contracts can go further than simply roles and responsibilities, and there are several benefits of employing one, including tried and tested protection which has been tested and revised in court for over 90 years. The JCT suite of contracts is made up of "families" of standard forms, guidance, and other documents that are suitable for the majority of construction projects and procurement methods.
JCT contracts generally follow the same structure for continuity and ease of use, and the conditions/contract terms in JCT contracts cover nine main areas, including payment provisions, which are flexible. Payment provisions in JCT contracts allow an employer to agree to make upfront and advance payments to contractors, as well as pay the contractor for off-site materials and goods, subject to security being provided over them if required.
In summary, a JCT contract is a standard form of contract for construction projects in the United Kingdom, produced by the Joint Contracts Tribunal. It sets out the responsibilities of all parties involved in the construction process and their obligations, and is designed to minimize the transaction cost of entering into a contract and provide benchmark provisions in standard form contracts.
