Contracts that are built to fit the specific requirements of a project, or tailored to fit the needs of your business, are known as bespoke contracts.
Unlike standard form contracts, every term in a bespoke contract, from payment structures to liability, is individually negotiated.
A bespoke contract should reflect your business model, address specific commercial relationships and objectives, ensure compliance with all UK laws and protect you from loopholes or disputes that standard form contracts leave open.
What are the benefits of bespoke construction contracts?
Bespoke construction contracts are purpose-built agreements tailored to the exact requirements of a project.
The benefits of using a bespoke construction contract include:
- Flexibility: Unlike standard construction forms, such as JCT or NEC, bespoke contracts can be crafted to handle unusual site conditions, architectural designs or multi-party arrangements that standard forms can’t accommodate.
- Precision: Bespoke contracts allow businesses to carefully outline responsibilities, materials, operational processes and change-order procedures that don’t rely on generic clauses.
- Risk management: Bespoke contracts let you have full control over risk allocation. You can decide on project-specific liabilities, such as delays or cost overruns and then allocate them to the party best placed to manage them.
- Reusable: If desired, a bespoke contract can be drafted from scratch and then standardised to fit your unique business model across multiple similar projects.
While bespoke contracts often offer more control over all aspects of the contract, it is important to remember that they often lack established case law.
Adding ambiguous clauses can sometimes lead to disputes if the contract is not handled by an experienced legal professional.
Standard form contracts vs bespoke contracts
Standard form contracts, such as JCT, NEC and FIDIC contracts, are widely used because they are established, familiar and supported by a body of case law.
Their wording is generally well understood by contractors, clients and legal professionals, which can make negotiations more straightforward and help disputes to be resolved more efficiently.
Bespoke contracts are drafted around the specific needs of the client and the project. This can give parties greater control over the terms, responsibilities and risk allocation, but it can also make negotiations more detailed and time-consuming.
Because bespoke terms may not have the same level of legal precedent as standard forms, clear drafting is essential. Ambiguous or one-sided clauses can increase the risk of disagreement later, so the contract should be balanced, precise and commercially workable for all parties.
In short, standard form contracts offer consistency and predictability, while bespoke contracts offer flexibility and a closer fit for the project’s requirements.
How we can help
A well-drafted construction contract should support the project, allocate risk clearly and help reduce the likelihood of disputes.
Our construction law solicitors can help you prepare a contract that is practical, precise and tailored to your project or business. We can advise on flexibility, risk management and the terms needed to protect your commercial position.
Get in touch today for expert advice on bespoke construction contracts.