The Joint Contracts Tribunal (JCT) Minor Works Building Contract is designed for smaller, basic construction projects where the work is relatively straightforward. The current version is officially called The JCT Minor Works Building Contract 2016 and covers works up to £250,000 and is therefore appropriate for most refurbishment projects. For larger renovation type projects, either the JCT Intermediate Building Contract or the JCT Standard Building Contract would apply.
In the JCT itself, responsibilities and tasks are listed and assigned to the contractor or developer as appropriate; most importantly the JCT provides redress in the event of a dispute. The contract comes with ample guidance and is an invaluable tool in the delivery of your project. The entire industry is familiar with JCT contracts and their standard forms are extremely adaptable.
Why Should Developers Use The JCT Minor Works Contract?
Without a JCT in place, projected profit for a project could literally disappear in the space of a few weeks. It never ceases to amaze me just how many Property Developers are prepared to engage with builders without the protection of a legally binding contract. The most usual dangers that lead to profit disappearing are ‘creep in scope’ & ‘deadline slippage’. When paying someone for their services, it makes sense to clearly define what services are being provided and when project milestones need to be achieved, for example.
Poor Excuses for Not Having a JCT
In the course of your work as a Property Developer you may be presented with the following excuses for not having a JCT in place:
- The contractor will charge more if they have to sign up to a contract.
- I know the builder personally and therefore there is no need to insist on a contract.
- The builder is doing me a favour and therefore we need to keep it off the books.
Do not make these excuses for yourself or listen to others giving you these excuses, find a contractor who is happy to work with a JCT in place! You will be in a much better position because of it.
Have you had a poor experience because you completed a project without a contract in place? Let me know in the comments section below.
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This is blog post number 13.