Why YOU Should Use A JCT Contract To Safeguard Your Building Company

JCT contract

A small refurbishment is becoming a major expense for many homeowners in the UK. To learn more, we take a look at how to use JCT contracts when you’re about to begin an extensive renovation on your home and what happens if things go wrong.

What is the JCT Standard Building Contract?

The Main Works Building Contract or JCT Standard Building Contract is a contract used by construction and design professionals like architects and builders. JCT contracts contain the terms and conditions of business that clients agree to abide by when they hire these experts. JCT Contracts are often referred to as JCT Forms or JCT Agreements.

JCT Contracts can be very complicated documents that are difficult to understand. JCT contracts are, however, usually written in clear English and JCT clients should be able to clearly identify the JCT provisions which apply to their specific project.

What’s JCT for?

JCT Contracts ensure that JCT clients can rely on professional JCT contractors who will provide a good standard of workmanship at a reasonable price. JCT Contracts also ensure JCT contractors have a reliable method of getting paid so they can do their work properly.

What JCT is JCT not? JCT is not supposed to be used by individuals who want to undertake JCT work themselves and try and save money by doing JCT the job themselves. Most JCT contracts have exclusions that clients must follow or providers will be entitled to terminate the project. JCT is also used by contractors who take on a lot of small-scale projects because they’re very unwieldy for this kind of work.

How to use JCT Contracts in your JCT business JCT contracts are usually JCT bought by JCT clients from JCT suppliers or JCT project managers who specialise in JCT. JCT client will JCT then need to JCT have their JCT agreement checked to ensure it contains the correct JCT provisions for the job at hand.

you’re a JCT contractor, you need to have experience and qualifications. You must also be a member of an organisation such as the CIOB Chartered Institute of Building) which allows you to work for existing members, gives full-time staff employment rights, and ensures the JCT standards are met.

What if the JCT contract is not followed?

If a JCT Contract is breached or breached by a party, there may be legal consequences to follow. In fact, the most important consequence of breaching a contract is that the other party can sue you or end your project.

However, there are also legal proceedings available to them under the contract without having to go to court if they breach it, for example by making you stop the project.

What happens if there is a dispute?

In most cases, it’s up to arbitration to resolve the dispute between two parties. In other cases, it can be settled through mediation or in court by using litigation.

What if you are sued?

If the other party has asked you to commit a breach of contract, they will first have to show that you actually made this commitment (specific performance). If they can do this, they must show a “material breach” of contract which has been very significant.

If you have not committed a material breach of your contract, the other party must pay your legal costs and also compensate you for any financial loss.

What is a specific JCT?

It is very rare for companies not to perform their contractual obligations, but if this has happened it does not necessarily mean that the contract is ended. Specific performance (or an injunction) it can be ordered by a court. This means that you must complete your contractual commitment and the contract will continue normally, even if you have breached several points in the past.

In general, specific performance is only available for contracts for the provision of goods or services.

JCT Contracts are legally binding documents, so make sure you know what you are doing before you enter into one. If you choose to go ahead with a project without having your contract checked by a professional, there is a good chance that you will suffer financially.

References:

  • https://www.jctltd.co.uk/ ( online contract forms)
  • https://www.CIOB.ORG (Chartered Institute of Building)

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