Below are the main differences between the JCT Design & Build 2015 form of the construction contract (“JCT Contract”) and the NEC Engineering and Construction Contract Option C (“the NEC Contract”) form. YCW contracts are a standard form of contract with the aim of facilitating the construction of buildings. These contracts support the construction industry in three ways: first, they minimize the transaction costs of entering into a contract because they are made available to customers in a standard form. This is especially useful when the budget is tight and costs need to be minimized. Lawyers and other legal professionals should assess the circumstances of agreements between the parties and ensure that they reflect or may reflect what is in the contract. This is not always possible, as regulations can change subtly over time, but at least a thorough review was carried out from the beginning of the contract. The main feature of the YCW design and construction contract is that there is no independent certification role in this form of contract. Typically, under the standard construction contract, this would be played by the architect or a contract administrator who is well able to settle disputes between the parties. However, in Design and Build, this role does not exist.
To put it simply on a JCT design and construction contract, the contractor (and its subcontractors) has the same professional responsibility for the design as an architect. The contractor(s) are on an equal footing with the architect. Always try to get a written contract before giving the green light. If the contractor doesn`t do what you agreed, a written contract can help you get what you paid for, or at least get some of your money back. Regardless of the form of contract chosen, it is important to take into account the experience and competence of the development team in dealing with the contract form. It is undeniably risky to blindly venture into a new form of contract without any experience in managing that contract, and this is the key to choosing the right contract form for your project. People in the construction industry use YCW contracts primarily to have a standard document they can rely on when a dispute arises. The dangers surrounding the industry are addressed. The program`s requirement under NEC is often described as the “beating heart” of the contract. The balance between the risks between the parties – the intent underlying the NEC contract – can be cumbersome in terms of administration. It is therefore important that both parties provide sufficient resources for contract management.
Regardless of opinion, it is important to remember that the Joint Contracts Tribunal (JCT) is made up of seven members representing a wide range of interests and experiences in the UK construction industry. The Body has been and continues to be able to produce balanced and standardized forms of contract that represent a balanced allocation of risk between the parties, and in its standard form this is exactly what it does. ICE conditions, new engineering contract, fidic, GC/Works/I, template form and IChemE form are alternative formats for construction contracts.  Both of the above situations can damage labour relations, delay construction work and result in significant legal costs. Parties should seek legal advice and properly review the terms before entering into an agreement, particularly if the terms or provisions have been changed. While it is recognized that this will inevitably incur costs and take longer, in the long run it could mitigate possible hidden disputes in the contract where the cost and duration of time will be higher. The parties still save time and money because they don`t create the contract from scratch. YCW offers separate contracts for employer design or contractor design. . NEC identifies a state at completion defined in the work information, unlike JCT, which is based on a subjective assessment of the practical completion determined at that time.
Conversely, the NEC is the contract of choice in the public sector and is used by most national and local government agencies after confirmation by the UK Cabinet Office in 2008. NEC offers a more collaborative approach to procurement, but carries a higher management risk. The NEC is therefore better suited to large infrastructure and works contracts worth more than £5 million, while the YCW is better suited for projects between £5 million and £25 million. The choice of job is closely related to the value of the work to be performed, as shown in the figures below. YCW contracts facilitate the construction of buildings. Simply put, contracts set out the responsibilities of all parties to the construction process and their obligations, so it`s clear what work needs to be done, who does it, when they do it, and for how much. “. for major work designed and/or detailed by or on behalf of the Employer, where detailed contractual arrangements are required, and the Employer must provide the Contractor with drawings; and with nomenclatures to define the quantity and quality of work; where an architect/contract manager and a quantity surveyor must manage the conditions. The YCW intermediate construction contract has been designed for projects involving all construction professions that require relatively detailed contractual conditions, but excluding developments of great complexity, for example in building technology. .