JCT TRADITIONAL CONTRACT

JCT Traditional Contract



JCT Traditional Contract

Introduction

In this paper, we will present a discussion on the problems arise in a construction contract in which the employer is not paying the contractor since the project is not completed on time. We will analyse the case in the light of JCT Traditional Contract.

Background of the Case

There is a well known company who wants to build their new office in New Castle. They hired the best known contractors to complete the project. They have already negotiated on the terms and conditions of the contract and have also decided on the budget of the project and the payment of the contractor. As per the contract terms and conditions, the contract had to start on August 12th, 2012 and was assumed to be finished on November 30th 2012. The contract was signed on July 25th 2012.

As per the contract terms, it started by the contractor on the decided date; however, there was some inconvenience happened during the project when the employer (who was the owner of the project) wanted to sign another contractor for half of the work so that the work gets completed on time. The first contractor (the employee of the project) did not like the idea of involving another contractor. However, he could not do anything about it and talked to the second contractor. Now, there were some issues arose between both of the contractors since the second contractor asked them to change some of the terms and conditions of the project on which the first contractor had already started working. Due to all these problems, the employer cancelled the contract with the second contractor and asked the first contractor (the employee of the case) to carry on with the project as per his rules and regulations. Due to this, the project got delayed and the contractor could not be able to complete it on time.

Now, the employer of the project is blaming the contractor for this delay and is saying that the contractor is not entitled for the full payment since the project was not completed on the pre specified time. On the other hand, the contractor is asking for the full payment as he thinks that he is not responsible for the delay of the project. Now, we will look towards the case by analyzing the JCT (Joint Contracts Tribunal) traditional contract.

JCT (Joint Contracts Tribunal) Traditional Contract

The JCT traditional contract was developed in the nineteenth century and found its largest modern form in the 1930s. The terms of the contract are monitored and periodically reviewed by the JCT (Joint Contracts Tribunal), an organisation which represent major industry partners.

In the system of JCT contract, the customer sign separate contracts with various independent professions such as quantity surveyor, architect and engineers and with a construction company. The architect performs construction plans according to the client's instructions and prepares a draft following the advice of engineering consultants. The quantity-surveyor then prepares an estimate, which is actually a quantitative ...