The JCT Standard Form of Building Contract 2016, or JCT 2016, is a widely used construction contract in the UK. It is a standard form contract that is designed to be fair to both parties, the contractor and the employer.
The contract has been updated from the 2011 version and incorporates changes that have been made in the construction industry over the years. The JCT 2016 includes provisions for sustainability, Building Information Modelling (BIM), and changes to payment procedures.
One of the key features of the JCT 2016 is that it provides a framework for contract administration, which ensures that both parties are clear on their roles and responsibilities. It defines the obligations of the employer and the contractor, as well as the procedures for dealing with changes and disputes.
Another important aspect of the JCT 2016 is that it provides for various payment mechanisms, including interim payments, retention, and final payment. These mechanisms are designed to ensure that the contractor is paid for the work that they have completed, while also protecting the employer from the risk of insolvency.
The JCT 2016 also includes provisions for delays and extensions of time. This is important as construction projects are often subject to unforeseen events, such as adverse weather conditions or supply chain issues. The contract ensures that delays are managed effectively, and the parties are clear on how to manage any extensions of time that may be required.
Overall, the JCT Standard Form of Building Contract 2016 is an essential tool for managing construction projects in the UK. It provides a clear framework for contract administration, payment mechanisms, and managing delays and disputes. The contract is fair to both parties and ensures that construction projects are completed successfully and on time.