If you are involved in construction projects, you may have come across the term „JCT intermediate contract.“ This type of contract is widely used in the construction industry in the United Kingdom and is governed by the Joint Contracts Tribunal (JCT).
So, what is a JCT intermediate contract, and how does it differ from other construction contracts?
A JCT intermediate contract is a standard form contract used for construction projects that are medium to large in size and complexity. It is suitable for a build-only project, where the design has already been completed, or where the design is being developed alongside the construction work.
This type of contract is typically used for projects such as commercial buildings, hospitals, schools, and other large-scale construction projects. It provides a balanced approach to risk allocation between the parties involved, including the contractor, employer, and any consultants or sub-contractors.
One of the key features of a JCT intermediate contract is that it includes a detailed form of bill of quantities (BoQ), which sets out the quantities and prices of all items of work in the project. This allows for accurate cost estimation and measurement of the work, as well as monitoring and control of costs during the construction process.
Another important aspect of the JCT intermediate contract is the inclusion of provisions for variations. These allow for changes to the scope of work during the construction process, while also setting out the processes and procedures for managing and valuing any variations.
The JCT intermediate contract also includes provisions for the completion date and payment terms. The completion date is set out in the contract, and the contractor must complete the work by this date or face penalties. Payment terms are set out in stages, with payments being made after completion of certain stages of the project.
In order to ensure that the JCT intermediate contract meets the specific needs of a project, it can be amended and tailored to suit the requirements of the parties involved. This can be done using a JCT standard amendment form, which sets out the amendments to be made to the standard contract.
In summary, a JCT intermediate contract is a widely used standard form contract for medium to large construction projects in the UK. It provides a balanced approach to risk allocation, includes provisions for accurate cost estimation and measurement of work, and allows for variations and changes to the scope of work during the construction process.