What does JCT stand for, and what type of contract is the JCT Design and Build 2016?
Joint Contracts Tribunal.
The JCT D&B 2016 is a lump-sum, fixed-price contract where the contractor takes full design and build responsibility.
The client’s requirements are set out in the Employer’s Requirements (ERs) and the contractor responds through the Contractor’s Proposals (CPs).
What is the role of the Employer’s Agent (EA) under a JCT D&B contract?
The EA acts on behalf of the employer, administering the contract, issuing instructions, certifying payments, and managing the change control process.
Unlike a CA under a traditional contract, the EA does not owe impartiality to both parties: they act solely in the client’s interests.
What is Practical Completion (PC) and what does it trigger under the JCT D&B 2016?
PC is the point at which the works are complete for their intended purpose, even if minor defects remain.
It triggers:
1. Release of half the retention;
2. Commencement of the Defects Liability Period;
3. Transfer of risk back to the employer.
What is a Performance Bond and what does it protect against?
A performance bond is a guarantee from a third party (usually a bank or insurer).
If the contractor defaults or becomes insolvent, the bond provider will pay the employer a sum (typically 10% of the contract value) to cover additional costs of completion.
What is a Collateral Warranty and why is it used?
A collateral warranty creates a direct contractual relationship between a consultant or contractor and a third party (e.g. a funder, tenant or purchaser).
Without it, that third party has no contractual rights against the party who may have caused them loss.
What is the difference between a Provisional Sum and a Contingency under a JCT contract?
A Provisional Sum is a defined or undefined allowance for specific work that cannot yet be fully specified.
A Contingency is a client-held risk allowance not included in the contract sum, used for unforeseen issues.
The contractor has no contractual entitlement to contingency.
What are the five key documents that form the JCT D&B 2016 contract?
(1) Articles of Agreement;
(2) Contract Particulars;
(3) Employer’s Requirements (ERs);
(4) Contractor’s Proposals (CPs);
(5) Contract Drawings / BIM model.
Where there is conflict, ERs generally prevail over CPs unless the parties agree otherwise.
What is Reviewable Design Data (RDD) and what is the EA’s role in reviewing it?
RDD is design information submitted by the contractor under a D&B contract for review by the EA or design team.
The EA checks compliance with the ERs.
This review does not transfer design liability to the employer; the contractor retains design responsibility.
What is the Rectification Period (Defects Liability Period) under a JCT D&B contract?
Typically 12 months after Practical Completion.
During this period the contractor must return to remedy notified defects.
At the end a Schedule of Defects is issued. Once rectified, the Making Good Defects Certificate is issued, triggering release of the remaining retention.
What does issuing a Practical Completion Certificate certify?
It certifies that the works (or a relevant section) are practically complete i.e. complete for their intended purpose even if minor snags remain.
The EA must be satisfied all contractual conditions precedent have been met before issuing it.
What is an Extension of Time (EoT) and when is a contractor entitled to one?
An EoT adjusts the Completion Date where a Relevant Event causes delay beyond the contractor’s control e.g. employer instructions, exceptionally adverse weather, or force majeure.
It prevents the employer from claiming LADs.
What is the difference between a Development Brief and a Project Brief?
A Development Brief sets out the client’s strategic objectives, land use parameters, and design intent at a high level; often used in the ERs of a D&B contract.
A Project Brief is more granular, evolving through RIBA Stages to set out specific design requirements, spatial needs, and quality standards for the professional team.
At which RIBA stages is the project brief typically developed, iterated, and frozen?
The brief is developed at Stage 0 (Strategic Definition) and Stage 1 (Preparation and Briefing).
It is refined through Stage 2 (Concept Design).
Under a D&B contract, it is typically frozen before the contractor is appointed, becoming the basis of the Employer’s Requirements.
Why is a poorly defined brief a major project risk?
An incomplete or ambiguous brief causes:
- Abortive design work
- Cost overruns
- Contractor claims for changes
- Client dissatisfaction
It is one of the most common causes of contractual dispute because the scope of what the contractor was contracted to deliver cannot be clearly established.
What is the Employer’s Requirements (ERs) document in a D&B contract?
The ERs set out the employer’s design and performance requirements that the contractor must satisfy.
They form part of the contract and take precedence over the Contractor’s Proposals.
They typically include a development brief, specifications, drawings, and specific performance criteria.
