16 FEBRUARY 2010

JCT BUILDS SHARE OF CONSTRUCTION CONTRACTS

Almost 80 per cent of building projects use the Joint Contracts Tribunal (JCT) standard forms of construction contract, according to the latest Contracts in use survey produced by Davis Langdon on behalf of the Royal Institution of Chartered Surveyors (RICS).

Published on Friday, the survey was conducted among private practices and public authorities and encompassed projects which started work on site between January 1 and December 31, 2007. It found that JCT's share of the market had increased since the last survey in 2004.

Michael Sullivan chairman of the RICS QS Professional Group said: "This is the only authoritative survey in the market. It is not based upon copies of contracts purchased it's based upon what the market actually uses."

The results showed that the vast majority of building projects used standard forms of contract (98 per cent), with JCT by far the contract family of choice (79 per cent by number), followed by the New Engineering Contract (eight per cent) and GC/Works (six per cent).

Neil Gower, chief executive of JCT, was pleased with the results: "JCT has been setting the standard in construction contracts for almost 80 years. We continue to strive to ensure our agreements are up-to-date, reflecting industry conditions and needs, and introduced with the broad agreement of the industry."

The survey captured significantly more larger projects than the last survey, which was conducted in 2004. Twenty-eight schemes over £50million were included this time, as opposed to just four last. This represented 17.4 per cent of the total of all new orders, more than twice that of the last survey.

Professor Peter Hibberd. JCT chairman, said: "The RICS survey shows that the broad range of traditional and non-traditional contracts, prepared from industry consultation and the input of users, meets the needs of the vast majority of those entering into building contracts. Clearly, the marketplace continues to see JCT contracts as the bedrock of the industry."

The survey also revealed that 50 per cent of projects in the £10m to £50m value band use design and build, there is no apparent increase in partnering between 2004 and 2007, and there is little use of partnering arrangements in conjunction with standard forms of contract.

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Note to editors:

The full survey results can be viewed at: http://www.rics.org/site/scripts/documents_info.aspx?documentID=834.

Various spokespersons at JCT are prepared to comment upon general news and issues relating to contracts and contractual relationships. However, it may not be possible to comment upon specific disputes and contracts. Please contact Michael Hardware below.

For further information, please contact:

Michael Hardware, Chelgate PR
020 7939 7989 or 07775 925 274 or
meh@chelgate.com

About JCT

The Joint Contracts Tribunal was established in 1931 and has for 79 years produced standard forms of contracts, guidance notes and other standard documentation for use in the construction industry.

The Joint Contracts Tribunal is an independent organisation representing all parts of the construction industry and is the leading provider of standard forms of building contract.  The following are Members of JCT:

British Property Federation Limited
Contractors Legal Grp Limited
Local Government Association
National Specialist Contractors Council Limited
Royal Institute of British Architects
The Royal Institution of Chartered Surveyors
Scottish Building Contract Committee Limited

and JCT Council is comprised of five Colleges representing:

employers/clients (including local authorities)
consultants
contractors
specialists and sub-contractors
Scottish building industry interests