The newly published聽鈥楻IBA Construction Contracts and Law Report 2022鈥� has revealed that JCT (Joint Contracts Tribunal) continues to be the most widely used standard form contract provider in the UK construction industry.
Nearly 60% of respondents to the survey indicated JCT contracts were the forms their organisation used most often, with over 70% saying they had used a JCT contract over the last 12 months.
When asked to give reasons for their choice of contract, respondents said of JCT: 鈥渋ndustry standard and tested in the courts鈥�, 鈥渇air, equitable and well understood鈥�, 鈥渟tandard lump sum contract understood by the industry鈥� and 鈥渟imple and familiar鈥�.
The use of JCT contracts was particularly dominant in the sector of project value between 拢250,000 and 拢5m.
The report also showed the overall level of reported disputes within the industry continues to fall 鈥� from 44% in 2015, to 33% in 2018, to 27% this year.
The importance of sustainability and collaboration were key themes, with 43% of respondents involved in one or more contracts that included 鈥榚xpected sustainable outcomes鈥� and 32% that included 鈥榤easurable sustainability criteria鈥�. Over 2)% said that 'operational performance criteria鈥� had become a contractual requirement, while 21% referenced 鈥榚mbodied carbon criteria鈥�.
Regarding collaboration, 57% of respondents said they adopted collaboration techniques on some or all projects, with almost a quarter adopting collaboration techniques on all projects. 63% said that collaboration techniques reduced the number of disputes, and 61% said they improved the delivery of the client鈥檚 objectives.
JCT was the one of the first standard form contract authoring bodies to produce specific clauses relating to sustainability and collaborative working within its contract suite and in its guidance note, Building a Sustainable Future Together.
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