This is the third blog in a series covering standard-form construction contracts. This blog looks at whether you should be using the JCT or NEC when choosing which construction contract to use.
Comparing the JCT and the NEC
The JCT contracts are most widely used within the construction industry in the UK.
The JCT is most useful for construction projects within the private sector. The NEC is often used by experienced clients.
If you are looking to secure goods, works and services, the NEC should be used as it is geared towards handling these areas in addition to construction works.
The contacts differ in style. Both construction contracts are designed using legal terminology, the NEC does so to a lesser extent but both contracts provide protection and aim take a collaborative approach between parties.
The JCT contract is between the client and contractor leading to a transfer of risk between these parties, while an NEC contract takes a partnering approach. While this has benefits, it requires much more involvement from the client, which is not always possible.
Both contracts manage payments in the same way. There are three phases which are the initial payment, variations, and final payments.
Stay updated with our blog for the final instalment in this series, ‘When should I opt for bespoke construction contracts?’
We can provide advice on which contract best suits you and your needs for your project.
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