Civil Engineering Reference
In-Depth Information
The overhaul of the JCT contracts in 2005 was in response to calls for change
following market research. The JCT found that the industry expressed a preference
for integrated documents for use rather than core documents with a series of
supplements. There was uncertainty about which form to use and which supplement
was appropriate to each form.
The JCT's aim was to present contracts in a user-friendly way. It achieves that by
producing stand-alone contracts without the use of supplements. Each contract con-
tains information about the circumstances in which it is suitable for use and many
have their own Guides containing additional explanatory information.
The structure of the contracts has been substantially overhauled with clauses being
grouped into sections such as 'Payment' and 'Control of the Works', being renum-
bered, and with the wording substantially revised in line with an aim to use plainer,
non-legalistic language.
Many clauses have been shortened and simplified, sometimes by defining terms
whichtendtorequirelongexplanations(suchas'Interest'and'Insolvency')andsome-
times by incorporation by reference of statutory provisions (such as the CDM Regu-
lations and VAT legislation) or procedural rules (such as the adjudication provisions
in the Scheme for Construction Contracts and arbitration rules).
ArticlesandContractParticularsarealllocatedatthefrontofthecontractsothatall
project-specific sections which require to be filled in are grouped together. A number
of default provisions are contained so that if the particulars are not properly com-
pleted, this does not leave a gap but the default situation is automatically applied.
Certain provisions have been deleted - Nominated Sub-Contractors and Sup-
pliers, Performance Specified Work, Contractors' Price Statement and Insurance
for Employer's Loss of Liquidated Damages no longer appear in the standard form.
There are optional provisions to be chosen as required, such as sectional completion
and Contractor's Designed Portion. These are provided for within the wording of the
standard form without the need for separate supplements to be read into the main
contract form. The 2005 Edition of the various contracts and subsequent revisions
have been consolidated into the 2011 Edition, which also takes into account changes
required as a consequence of the amendments made to the 1996 Act by the Local
Democracy, Economic Development and Construction Act 2009 with effect in
England and Wales from 1 October 2011 and in Scotland from 1 November 2011.
The SBCC have produced, currently as 2011 Editions, Scottish versions of the
majority of the JCT forms. he practice of publishing these as Scottish Supplements to
be read into the JCT form ceased with the 2005 Edition when they were produced as
stand-alone contract documents for the first time. This was a welcome user-friendly
development and the differences between the JCT and SBCC versions are limited to
those required to bring the JCT contracts in line with Scots law, terminology and
procedure. All section and clause numbering is common between equivalent JCT
and SBCC contract forms.
The principal areas of difference between JCT and SBCC are the third party rights
and the arbitration provisions. hird party rights relate to the ability to confer benefits
onapersonwhoisnotpartytothecontract,andwouldtypicallybeusedinaconstruc-
tion context where collateral warranties would otherwise be required. In England
and Wales, this is governed by the Contracts (Rights of Third Parties) Act 1999. This
