US Construction Contractor Forms - Page 2

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Commonly Asked Questions about US Construction Contractor Forms

What is the difference between JCT and NEC?

In this article, we examine some of the main differences between the key JCT and NEC4 contracts. Generally, NEC contracts are aimed at engineering projects but are easily adapted to building works. JCT contracts are aimed at building works rather than engineering projects but again can be adapted for both.

What are the advantages of JCT?

It saves time. It minimises transaction cost. It allocates risk in a fair and recognisable way. Standard forms are designed in a way that is comprehensive, and cover most of the pitfalls which surround contractual relations in the building industry.

What are the disadvantages of a JCT contract?

What are the disadvantages of using a JCT contract? When a JCT contract is created, it can be difficult for either party to modify their needs. Given the usual format of JCT contracts, any alterations could result in project delays due to the introduction of unfamiliarity.

What are JCT relevant events vs NEC compensation events?

Variations under JCT are known as Relevant Events and under NEC are known as Compensation Events. JCT deals with time and price variations separately, therefore an extension of time does not guarantee price adjustment. Unlike the NEC where both time and cost are grouped together under the Compensation Event.

What are the four types of construction contracts?

Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.

What is the difference between Jbcc and NEC?

The NEC3 suite of contracts is versatile and can be used for small, medium or large building and engineering works. JBCC is only suitable for building works and not engineering works and is very widely used as such in South Africa for a range of projects.

What is a standard form of building contract?

The JCT Standard Building Contract is designed for large or complex construction projects where detailed contract provisions are needed. Standard Building Contracts are suitable for projects procured via the traditional or conventional method.

What are forms used for in construction?

Formwork, also known as concrete forms, is a temporary or permanent mould used to create concrete slabs and structures. Its a barrier that holds the fresh concrete in place and helps with shaping the concrete until the concrete is strong enough to hold its own weight and shape.