Construction Business and Law: JCT Contract Obligations Analysis

This report provides a comprehensive analysis of the rights, obligations, and liabilities of parties involved in a construction project under the JCT (Joint Contracts Tribunal) standard form of contract, particularly focusing on the roles of the developer (inexperienced builders in this case) and the contractors. It elaborates on the primary obligations of both parties to comply with the contract terms, the contractor's obligation to supply priced bills of quantities, and the employer's obligation to provide necessary design and construction requirements. The report also discusses the contractor's responsibilities for carrying out work diligently, including their own designs, adhering to joint fire codes, and addressing defects. Furthermore, it touches on the employer's duties related to interim certificates and CDM coordination, as well as the roles and responsibilities of other parties like quantity surveyors and architects, emphasizing the importance of compliance to avoid legal implications. The analysis relates question 3 to other questions within the assignment brief.

Running head: CONSTRUCTION BUSINESS AND LAW
Construction business and law
Student’s Name
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Author’s Note

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Answer 3
There are various rights and obligations which are provided under the JCT standard
form of contract for the contracting parties. The primary parties which have been identified
through the case studies as the contractual parties are the group of inexperienced builders and
the contractors to whom the development work will be allocated. The main powers,
liabilities and obligations which arise under the JCT contract are elaborated below.
The primary obligation of both the parties is to ensure that they comply with the terms
and conditions provided through the contract. In case compliance is not ensured, it would
lead to the breach of contract resulting in legal implications. As stated by Lai, Huang and Li
(2014), the contractor has the obligation of supplying the employer with a full priced copy of
bills of quantities. The employer has an obligation to provide the contractor with documents
describing and showing the requirements for the contraction and design of the designed
portion of the contractor. In response to the requirement of the employer, it is the duty of the
contractor to provide the employer with documents describing and showing proposal of the
contractor for the contraction and design of the designed portion. It is the responsibility of the
contract under article 1 to ensure that the construction work is carried out in compliance with
the contract. It is the right of the contractor to receive and the obligation of the employer to
provide the sum which has been provided through article 2 of the contract. Both the parties
have the right to refer any dispute to adjudication. Again, as per Hyndman (2015), the parties
also have the right to refer a dispute to arbitration in accordance with the provisions of clause
9.3 to 9.8 of the JCT 2005. It is the duty of the contract to ensure that the work is carried out
by a diligent, careful and timely manner. They have the right to include their own designs in
the contract. If they are to provide an own design to the employer, they also have to provide
the quotation for the designing portion. Under the joint fire code, the employer and the
contract can share joint liability. It is the responsibility of the employer to produce

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comprehensive and timely contractor interim certificates. It is also the responsibility of the
employer to ensure that all duties of the CDM co-ordinate are carried out properly (Haar,
Laney and Levine 2016). The employers have the right to allow the contractor to carry out
additional work which has not been provided through the contract initially.
The contract is always in a lump sum so it is the responsibility of the contractor to
complete the work within the prescribed pay or else the additional cost has to be borne by
them. The liability of any material lost or stolen from the site is also of the contractor
(Thomas and Wright 2016). It is the responsibility of the contractor to amend any defect. The
responsibility of the contractor is also to make a competent person available on the site.
There are other parties involved in a construction contract as well. These include
quantity surveyor and the Architect. The quantity surveyor has the responsibility of providing
accurate bills of quantities relying in the drawings made by the architect through the use of
present standard measurement methods. They also have the responsibility of ensuring that
specific materials of good quality are used by the contractor. On the other hand it is the
responsibility of the architect to issue postponement of work under the contract and produce
accurate designs.
The above rights and responsibilities have to be complied with by both the developer
and the contractor to avoid legal implications.

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Reference List
Hyndman, J., 2015. A deluge of claims. Building Surveying Journal, p.19.
Lai, Y.F., Huang, R. and Li, K.Y., 2014. Application Study on JCT Contract for Construction
Market of Real Estate in China. International Journal of Management Science and
Engineering Research, 1, pp.21-26.
ter Haar, R., Laney, A. and Levine, M., 2016. CONTRACT INSURANCE UNDER JCT
CONSTRUCTION MANAGEMENT 2011. In Construction Insurance and UK Construction
Contracts (pp. 346-356). Informa Law from Routledge.
Thomas, R.W. and Wright, M., 2016. Construction contract claims. Macmillan International
Higher Education.