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Commonly Asked Questions about USA Construction Contractor Legal Forms

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.
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.
Thats the key advantage of using a standard form someone has already prepared the basic contract terms so there is less work needed to get to a signature-ready contract. There are, however, times when using a standard contract is not the way to go.
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.