Contracts

Question 1

Jct conditions

Answer 1

The JCT Conditions of Contract are the core legal terms that govern how the project is to be carried out. These conditions are standardised clauses and form the main body of the contract. While the exact clause numbers and titles vary depending on the specific JCT form (e.g., Design and Build, Standard Building Contract, Minor Works), the main sections (conditions) generally cover the same key topics.

Here’s a typical breakdown of the JCT Conditions:

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1. Definitions and Interpretation
   • Sets out key definitions and rules for interpreting the contract.

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2. Carrying Out the Works
   • Contractor’s obligations
   • Possession of the site
   • Use of materials, workmanship standards
   • Sub-contracting
   • Practical completion

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3. Control of the Works
   • Role and authority of the Architect/Contract Administrator
   • Instructions
   • Contractor’s design responsibilities (if applicable)

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4. Payment
   • Interim payments
   • Valuations
   • Retention
   • Final account
   • VAT and payment notices

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5. Variations
   • How changes to the works are instructed and valued

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6. Injury, Damage and Insurance
   • Liability for personal injury, property damage
   • Insurance responsibilities
   • Indemnities

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7. Assignment, Third Party Rights and Collateral Warranties
   • Rights to assign the contract
   • Third-party rights provisions
   • Warranties to funders/purchasers/tenants

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8. Termination
   • Grounds for termination by either party
   • Procedures for termination
   • Payments after termination

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9. Settlement of Disputes
   • Adjudication
   • Arbitration
   • Litigation

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