A range of online courses covering different aspects of standard contracts.
Building Information Modelling guides
A relatively new addition to the resources on the JCT website, the Building Information Modelling guides aim to demystify this digital process and make it relevant to construction clients and small businesses in the industry.
Benefits of using JCT contracts
There are many reasons why a contractor or subcontractor chooses to work with a JCT contract. These include:
Standardisation - most parties are familiar with them and have confidence that they cover most issues expected on a construction project.
Risk management - the contract structures ensure that risk is balanced between both sides.
Dispute resolution - where disputes arise, the contracts set out arbitration processes.
Protection from poor contractors - the contracts reduce the risk of engaging a contractor or subcontractor who doesn't work to professional standards.
A major benefit of all this is that the cost of a project is easier to control, as is the timescale. The standard contracts make a significant contribution to effective project management.
Possible limitations of JCT contracts
While they are hugely convenient, JCT contracts must be reviewed before being agreed to. Issues you need to consider when using JCT contracts include:
Accuracy of the requirements: a contract in its standard form may not be appropriate on a specific project, or it may give a contractor the ability to make decisions that their customer would prefer to have some input into.
How to make amendments: fortunately, you can access JCT Digital, an online tool that makes contract drafting easier.
Resolving differences: where disputes occur, they can push up project costs and extend timescales. It's important that the contract dispute resolution process helps minimise the risk of these occurring.
It's essential that the contract is thoroughly reviewed after any amendments have been made. If you sign it without checking all the details, even of the standard form, you could be agreeing to terms that are unfavourable to you.
Helping construction companies with cashflow
While JCT contracts help with managing the risks and responsibilities on a construction project, including payment terms, this doesn't always protect construction businesses from cashflow challenges.
These challenges could be a result of late payments from clients, covering the costs of hiring additional staff or paying for the procurement of extra material or equipment. Whatever the reason, a cashflow crisis can become a significant risk.
We help businesses overcome these challenges by sourcing additional finance, either short-term or over a longer period. We work with a panel of over 250 funders, many of whom have extensive experience of supporting businesses in the construction sector.
If you're facing a possible cashflow challenge, it's better to take action now. Don't leave it to the last minute, as that can make it more expensive to fix the problem.
Our specialist finance team talks to business owners in the construction sector every day. If you think you may need our help - get in touch today.
As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients.
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