Building a new property in the UK involves signing a construction contract with the selected builder. This document sets out the terms and conditions under which the builder would undertake the project, including timelines, payment schedules, warranties, and other essential details. There are several types of building contracts in the UK, and this article will discuss some of the most common ones.
1. JCT Standard Building Contract – This contract is one of the most widely used in the UK construction industry, particularly for larger projects. It is suitable for traditional procurement, where the architect or the client employs the builder. The JCT Standard Building Contract defines the roles and responsibilities of each party, outlines the payment structures, and includes provisions for extension of time and loss and expense claims.
2. Design and Build Contract – This type of contract is commonly used for projects where the builder is responsible for both the design and construction of the property. In a Design and Build Contract, the builder assumes more significant risks and responsibilities for the project`s outcome, and the client benefits from having a single point of contact throughout the project. This contract also allows for cost certainty from the outset, as the builder is contractually bound to complete the project within a set budget.
3. Minor Works Contract – This contract is used for smaller projects, such as refurbishments or minor alterations. It is a shorter and simpler document than the JCT Standard Building Contract, but it still outlines the key terms and conditions of the project, including scope of works, payment schedules, and warranties.
4. NEC (New Engineering Contract) Contract – The NEC Contract is becoming more popular in the UK construction industry, particularly for large, complex projects. It is a flexible contract that allows for collaboration and risk sharing between the parties involved. The NEC Contract also includes provisions for early warning systems, dispute resolution procedures, and project management tools.
5. Bespoke Contract – In some cases, it may be necessary to create a bespoke contract tailored to the specific needs of a project. This contract would be drafted by legal professionals and would include clauses and provisions that reflect the unique circumstances of the project.
In conclusion, selecting the right building contract is essential for any construction project in the UK. Each of the above-mentioned contracts has its pros and cons, and it is crucial to seek professional advice to determine which one is most suitable for your project. With the right contract in place, both the client and the builder can ensure that the project is completed on time, within budget, and to the required quality standards.