Standard forms of contracts
There are a variety of standard form contracts in use in the UK. The main industry providers are listed below, together with examples of their contracts.
Engineering works The main providers are:
The appropriate choice of contract in each case will depend on various factors including: – Nature of the works – Parties – Preferred procurement method – Approach to risk allocation – Costing and pricing mechanism Standard forms are usually amended to procure a more favourable risk allocation for the employer. It is rare to use a standard formwithout any amendments, especially on larger projects. Building works The Joint Contracts Tribunal (JCT) provides a suite of standard form contracts, which are the most commonly used forms for UK building projects. The leading forms are the Standard Form of Building Contract (SBC) and the Design and Build Contract, both of which are commonly used for large projects. Although the JCT Major Projects form is specifically designed for use on large projects, it is currently less widely used. There are a number of other JCT forms for use on smaller, less complex matters – ranging from intermediate value projects to minor commercial works, and finally to domestic works undertaken by homeowners and occupiers.
Institution of Civil Engineers (ICE), which publishes the NEC3 suite. This includes the following options: – Priced contract with either Activity Schedule or Bills of Quantities (Options A and B) – Target cost contract with either Activity Schedule or Bills of Quantities (Options C and D) – Cost reimbursable contract (Option E) –– Management contract (Option F) The NEC form of contract is also used for building works, although it is predominantly an engineering form. The Institution of Chemical Engineers (IChemE), provides the following standard forms designed for process plant projects: – Lump sum (the Red Book) – Reimbursable (the Green Book) –– Target cost (the Burgundy Book) The Association for Consultancy and Engineering (ACE) and the Civil Engineering Contractors Association (CECA), who jointly publish the Infrastructure Conditions of Contract (ICC). This includes the following forms: – Design and construct – Measurement – Target cost –– Ground investigation
16
Made with FlippingBook Online newsletter