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Commonly Asked Questions about US Legal Construction Forms

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.
In an AS2124 contract, express time bars are incorporated. As a result, this means that upon a change in circumstances, contractors must acknowledge the change by making a claim within the prescribed time frame. Contrary to this, no time bars exist in an AS4000 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.
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.
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.
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.