Essay Comparing key details of two types of construction contracts (JCT 2016 SBC/Q and FIDIC 2017) Assignment Sample
Introduction
Contracts that use standardised, non-negotiated elements to define which professional services are to be provided by the contractual parties are known as standard form contracts. In the United Kingdom, JCT and FIDIC are two of the most regularly used standard form agreements. The purpose of this report is to determine if the principles of each contract form are similar or different from one another.
The JCT is a standard form contract designed by in 1909 to acquire and administer construction projects of any size (JCT, 2016). A wide range of project types can benefit from JCT standard forms, including home and infrastructure projects (RICS,2020).
A group of European consulting engineers came together in 1913 to form the International Federation of Consulting Engineers (FIDIC) (FIDIC, 1999). Building and engineering companies can use FIDIC’s standard form contracts, which are designed for infrastructure and energy projects (RICS, 2020). For worldwide use, FIDIC forms cover over 100 countries and have members in 60 nations (FIDIC, 2020).
Comparison of conditions guiding payment
Traditional, Design and Build, and Management are the main ways for procuring construction. JCT has issued a number of standard form contracts based on these procurement methods (JCT, 2011). When clients hire consultants to design their projects, they allow contractors to bid on the job. JCT contracts are deemed “traditional” because of this “Design Bid Build” element (Tahooloo, 2020).
Parties to JCT SBC16 are obligated to adhere to the ‘Conditions’ outlined in the document. Traditional arrangements, on the other hand, have been criticised for shifting responsibility and liability from the employer to the employee (Tahooloo, 2020).
Within the Rainbow Suite 1st and 2nd Edition, FIDIC contracts are categorised by ‘Books’. In spite of the fact that earlier contracts were issued prior to the 1999 first edition’s publication (Aspelling, 2020). Each of these “books” contains information on the administration of various projects and methods of procurement (NBS, 2014). Red Book 1st Edition provides “conditions for construction of building and engineering works designed by Employer”; however, Yellow Book 1st Edition gives “conditions for Plant and Design–Build for electrical and mechanical plant and engineering works designed by Contractors”. ‘Red Book’ 1st Edition FIDIC, like JCT and NEC, can be customised to meet the needs of a particular project and its various stakeholders (FIDIC, 2011).
Clauses referred to as ‘General Conditions’ are included in FIDIC standard forms, which make FIDIC an old-fashioned approach to contracting (Besaiso, 2018). In each FIDIC Book, parties must outline their respective responsibilities and obligations for each of the conditions that are explicitly stated in the contract (Hewitt,2014). ‘Specific Conditions’ can also be added to the contract to make it project-specific.
Comparison of conditions guiding project programming
It is not a contractual document for JCT to have a Program (Jenkins,2014). As soon as feasible following contract execution, a Program must be submitted in JCT SBC16, the only JCT form that needs this (JCT SBC,2016). Unless otherwise stated, the Program is not required to include any specific information. The scope of the project dictates that the work of the contractors must be done in accordance with that scope. According to JCT SBC/Q, 2016, Contractors must amend their schedules if there are changes to the date of completion that is agreed upon upon (clauses 2.9/1/2.9.2).
Within 28 days of receiving the start date notice, FIDIC RB requires contractors to submit a Program to the Engineer (Clause 8.3, FIDIC Red Book). Once the original programme has been provided, the Engineer/CA has 21 days to study it or 14 days to update it. Similarly to JCT SBC16, if the initial Program presented is no longer consistent with progress or the contractor’s commitments, the contractor shall amend the Program (NEC,2014). With JCT SBC16, contractors are free to proceed as planned unless Engineer/Employer advises them that they must alter their plans because the plan does not meet the contract requirements (NEC,2014).
Comparison of dispute resolution methods
Employer appoints Architect/Contract Administrator (CA) in accordance with JCT SBC16, Article 3 for contract administration and management of building affairs (RICS, 2020). Conditions are provided by JCT, and the CA decides those tasks that should be carried out in order to ensure that contracts are handled fairly and effectively (RICS, 2011). The CA must identify practical processes when specific activities are not specified (RICS, 2011).
It is the responsibility of the CA to comply to JCT standard forms. No requirements are placed on third parties, but the employer must make certain that the CA is appointed in accordance with the obligations outlined in the agreement (RICS, 2020). All processes and procedures under the contract must have been thoroughly understood by the Architect/CA. JCT forms, unlike NEC4 ECC, focus on project delivery; hence, there are no significant methods for continued contact between the Contractor and the CA.
In contrast to JCT, the appointing the CA under the purview of the FIDIC forms is governed by the specific ‘Book’ of the FIDIC form in question (Gillion,2012). Contract Administration is handled by the Employer or its representative in the case of FIDIC Silver. Individuals or legal entities can be FIDIC RB Engineers. The Employer must appoint the Engineer and include his or her name in the “Contract Data” (Gillion, 2012). Professional engineers who are conversant in the contract’s language are required (FIDIC Red Sub-Clause 3.1). Acting on behalf of the employer, the engineer serves as their representative, administering the contract as written or as it can be construed; making decisions. In addition, the Engineer, like JCT, is given contractual “obligations.”
Conclusion
JCT and FIDIC are clearly designed to be used in a wide range of procurement and construction methods. In addition to including prepared provisions relating to programme and contractual duties, each contract form specifies who will be in charge of administering the contract. JCT and FIDIC adhere to a “traditional” approach, in which rights, obligations, and risks are explicitly stated in contracts for the benefit of the parties. This includes aspects such as BIM application and BIM programme administration.
References
Besaiso, H., Fenn, P., Emsley, M. and Wright, D., 2018. A comparison of the suitability of FIDIC and NEC conditions of contract in Palestine. Engineering, Construction and Architectural Management, 25(2), pp.241-256.
FIDIC (2017) Conditions of contract for construction for building and engineering works designed by the employer (red Book) (Includes errata dated February and June (2019) [online], Available at: https://www.ihsti.com/CIS/document/330240?PreviousPage=search%3ff%3dAll%26t%3dfidic%2bred%2bbook%2b2017%26sqm%3dAllTerms
Hewitt, A., 2014. The FIDIC Contracts. Wiley-Blackwell.
JCT (2016) Standard Building Contract with Approximate Quantities 2016 [online], London: Sweet and Maxwell. Available at: https://www.ihsti.com/CIS/document/315594?PreviousPage=search%3ff%3dAll%26t%3djct%2bstandard%2bbuilding%2bcontract%2bwith%2bapproximate%2bquantities%2b2016%26sqm%3dAllTerms
NEC (2017) NEC4: Engineering and Construction Contract [online], London: ICE Publishing. Available at: https://learn.ucem.ac.uk/mod/folder/view.php?id=269668
Tohooloola, Y., (2020). JCT Vs NEC: Which Is Best For Your Project? | C- Link. [online] C-link.com. Available at: https://c-link.com/blog/jct-vs-nec/
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