Well, at least you do if you want to ensure that both you and the contractors and consultants you employ understand your roles and responsibilities. Here's a simple guide to the different types of building contract.
Which building contract for your project?
For simple projects: JCT Minor Works Building Contract is likely the best fit.
For more substantial projects: Consider the JCT Standard Building Contract or NEC.
For design-focused projects: RIBA Building Contract might be suitable if an architect is involved.
The more complex your requirements, the more important it becomes to consult with a construction lawyer or professional to ensure the contract is tailored to your specific needs and complies with UK law.
JCT Minor Works Building Contract
When to use it
This is ideal for small-scale or straightforward construction projects. It's suitable for projects where the work is relatively simple and the contract sum is not excessively large.
Features
Simple terms and conditions.
Clear provisions for dealing with variations (changes to the scope of work).
Limited paperwork.
Useful for building works such as extensions, renovations, or small new builds.
Why choose it
It's widely used, relatively easy to understand, and is specifically designed for less complex projects.
JCT Standard Building Contract
When to use it
If your project is more substantial or involves more complicated work, you might consider the JCT Standard Building Contract.
Features
More detailed than the Minor Works contract.
Includes provisions for dealing with changes, disputes, and insurance.
Suitable for larger, more complex construction projects.
Why choose it
Offers more comprehensive terms for larger projects, and it's widely recognized in the UK construction industry.
NEC3/NEC4 Engineering and Construction Contract
When to use it
If you want a flexible and modern contract, NEC is a good choice. It’s often used for a variety of construction projects, including those with a more collaborative approach.
Features
Focuses on collaboration and risk management.
Provides various contract options (e.g., lump sum, cost reimbursable).
Can be adapted to suit the scale and complexity of the project.
Why choose it
If you value a flexible, proactive approach to project management and dispute resolution.
RIBA Building Contract
When to use it
If the project has been designed by an architect under the RIBA framework, you might use the RIBA Standard Form of Building Contract.
Features
It includes provisions for both design and construction.
Can be used for small to medium projects.
Suitable for design and build projects or where the architect is involved in the contract administration.
Why choose it
If your project involves an architect and a design-focused approach.
Simple Written Agreement
When to use it
For very small projects (e.g., a home renovation or minor repair work), you might opt for a simple written contract rather than a formal standard form.
Features
Basic terms, such as the scope of work, payment terms, timeline, and completion date.
Informal but still legally binding if both parties agree.
Why choose it
For very straightforward, small-scale projects where the use of formal contracts might be overkill.
Things to Consider
Payment Terms
Will the contract be based on a lump sum, hourly rate, or progress payments?
Project Scope
Is the scope clearly defined? Will you need a contract that handles changes and variations?
Dispute Resolution
Consider how disputes will be resolved – mediation, arbitration, or litigation?
Insurance and Liability
Make sure the contract outlines who is responsible for insurance and what happens if damage occurs during the project.
Author
Darren Hewitt
Darren has over 25 years experience in the construction industry. Within this time he has led and delivered construction projects for major blue chip clients.
Darren has held senior roles in both client and consultant organisations. This gives him a full understanding of the construction process and level of stakeholder engagement required to ensure successful project/programme outcomes.
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