A construction contract is an agreement with a person to carry out or arrange for carrying out of construction operations. Construction contracts can also include agreements to do architectural, design or surveying works and agreements to provide consultancy in construction related fields.
To increase efficiency in the construction industry there are standard forms of contract, published by bodies such as the Joint Contracts Tribunal (JCT), Institute of Civil Engineers (NEC), Institution of Chemical Engineers (IChemE), Institution of Electrical Engineers (MF/1), International Federation of Consulting Engineers (FIDIC) .
JCT contracts are generally made between an employer and a contractor with the aim of facilitating the process of delivering a building project. They are the most popular form of contract on private building projects.
The NEC contract suite provides a focus on good project management, cooperation and communication. NEC contracts are intended to be used for all types of projects, notwithstanding the discipline or size of the project and encourage a collaborative approach between the parties.
The MF/1 form of contract is designed for the supply and erection of electrical or mechanical plants.
The IChemE model form conditions of contract are intended for the construction of process plants. IChemE is used for water treatments projects, petrochemical installations and power plants, as its detailed provisions for testing on completion makes it especially fitting for schemes for process plants.
The FIDIC suite of construction contracts, includes several types of FIDIC contract such as the Red Book (building and engineering works designed by the employer), the Yellow Book (mechanical and electrical, building and engineering works designed by the contractor), the Silver Book (engineering, procurement and construction and turnkey), and the Green Book. FIDIC contracts are used on many international projects.
