Introduction to JCT Standard Building Contract 2016

Introduction to JCT Standard Building Contract 2016

JCT Standard Building Contract 2016 is a standard form of contract between a contractor and an employer and is published in 3 versions:

1. SBC with quantities

2. SBC without quantities

3. SBC with approximate quantities

The contract is not between the architect, contract administrator, QS or anyone else. It is simply between the employer and the contractor.

SBC with Quantities

• The employer is to provide drawings and a bill of quantity.

• The contractor prices the BoQ and this becomes the Contract Sum

• This is a lump sum contract that can only be changed with Variations

• Note that Clause 4.2 of the contract says that any error in the computation of the contract sum is accepted by the parties.

SBC without Quantities

Most common forms of contract used.

• The employer is to provide drawings and a specification or work schedule but does not include BoQ

• The contractor prices the drawings and spec and this becomes the Contract Sum

• This is a lump sum contract that can only be changed with Variations

SBC with Approximate Quantities

• The employer is to provide drawings and an approximate bill of quantity.

• The contractor prices the approx. BoQ. The rates are given in the approx. BoQ is used against remeasurement of the works carried out

• This is a not lump sum contract as the price will vary as the whole contract is based on remeasurement.

JCT SBC 2016 is primarily intended for use for larger works designed and detailed on behalf of the Employer and where detailed contract particulars are necessary.

This is not for a full Design and Build procurement route as JCT produce a separate contract for D&B procurement routes. DB 2016

It can be used where the Contractor is to design discrete parts of the Works. This is called Contractors’ Design Portion (CDP).

The contract can also be used to carry out in Sections, so instead of having one completion date, you can have multiple completion dates.

The contract can be used for private Employers and for Local Authorities Employers

To operate the contract properly the Employer must appoint the following:

1. Architect or Contract Administrator – operates the provisions of the contract (ie extension of time, date of completion, retention, certificates etc)

2. Quantity Surveyor – dealing with all the financial aspects (ie BoQ, Tendering, monthly valuations etc)

The architect or contract administrator has dual roles:

1. Employer’s ‘agent’ – acting on behalf of the employer to ensure the contract is followed and administered correctly

2. Independent Certifier – has to act impartially where there are any matters of certification, for example, extension of time, practical completion, payment provisions, defects etc.