Construction Contracts

Question 1

What is a standard form of contract?

Answer 1

A set of express contract terms used across projects, standardised for fairness and flexibility.

Question 2

Why are standard forms used in construction?

Answer 2

They save time and cost, reduce ambiguity, and are familiar to professionals.

Question 3

Can standard forms be amended?

Answer 3

Yes, but amendments are discouraged by the issuing institutes.

Question 4

Name three benefits of standard form contracts.

Answer 4

Off-the-shelf availability, fair risk allocation, and reduced inconsistencies.

Question 5

How do standard forms help during tendering?

Answer 5

They simplify bidding, evaluation, and contract administration.

Question 6

What factors influence the choice of standard form?

Answer 6

Procurement method, payment mechanism, project type, client preference.

Question 7

Name three professional bodies that draft standard forms.

Answer 7

JCT, ICE, NEC.

Question 8

What does JCT stand for?

Answer 8

Joint Contracts Tribunal.

Question 9

What is the current version of JCT contracts?

Answer 9

JCT 2024.

Question 10

Name three organisations in the JCT.

Answer 10

RIBA, RICS, Local Government Association.

Question 11

What is the JCT Minor Works Contract used for?

Answer 11

Simple, small-scale projects with lump sum pricing.

Question 12

What is the JCT Intermediate Building Contract used for?

Answer 12

Projects involving all trades but without complex services.

Question 13

What is the JCT Standard Building Contract (SBC/Q)?

Answer 13

For large, complex projects with a detailed Bill of Quantities.

Question 14

What is the JCT Design and Build Contract?

Answer 14

Contractor handles both design and construction.

Question 15

What is the JCT Management Building Contract?

Answer 15

Management contractor oversees works contractors for a fee.

Question 16

What does NEC stand for?

Answer 16

New Engineering Contract.

Question 17

Who launched NEC?

Answer 17

Institution of Civil Engineers (ICE).

Question 18

What is the current version of NEC?

Answer 18

NEC4 (launched in 2017).

Question 19

What approach does NEC promote?

Answer 19

Collaborative, less adversarial project management.

Question 20

What is NEC option A?

Answer 20

Priced contract with activity schedule (lump sum).

Question 21

What is NEC option B?

Answer 21

Priced contract with Bill of Quantities (remeasurement).

Question 22

What is NEC option C?

Answer 22

Target contract with activity schedule (shared risk).

Question 23

What is NEC option F?

Answer 23

Management contract (cost reimbursable).

Question 24

What common themes run through all standard forms?

Answer 24

Duties, payments, quality, time, disputes, variations, claims, insurance.

Question 25

What factors influence contract selection?

Answer 25

Procurement strategy, payment method, project size, client preference, cost certainty, collaboration level.

Question 26

Can standard forms be used for both large and small projects?

Answer 26

Yes - they are designed to be flexible across project sizes and complexities.

Question 27

What does “families/suites” of standard forms mean?

Answer 27

Groupings of related contracts tailored to different project types and scales.

Question 28

Can parties amend standard form contracts?

Answer 28

Yes, by deleting, adding, or changing clauses before signing - though amendments are discouraged.

Question 29

What does SBC/AQ stand for in JCT contracts?

Answer 29

Standard Building Contract with Approximate Quantities.

Question 30

What is the pricing strategy for JCT Management Building Contract?

Answer 30

Cost + Fee.

Question 31

What is the role of the Employer’s Agent in JCT Design and Build contracts?

Answer 31

To administer the contract on behalf of the client.

Question 32

What is the NEC4 Engineering and Construction Contract Option D?

Answer 32

Target contract with Bill of Quantities.

Question 33

What is NEC4 Option E used for?

Answer 33

Cost reimbursable contracts.