In construction projects, site risk is a major concern that can lead to delays, financial losses, and legal disputes. But who is responsible for these risks—the contractor or the employer? The answer often depends on the terms outlined in the Joint Contracts Tribunal (JCT) contracts.
At ApexCounsel, we provide expert legal advice UK businesses can trust. Whether you need construction legal advice, contractor legal advice, or commercial contracts advice, we help businesses navigate contract complexities and manage site risks effectively.
What Are JCT Contracts?
JCT contracts are widely used in the UK construction industry to define the roles, responsibilities, and liabilities of contractors and employers. These contracts establish who bears the risk in case of unexpected site issues, such as:
- Ground conditions (e.g., contaminated soil, underground utilities).
- Weather delays.
- Structural defects.
- Changes in regulations or planning requirements.
Understanding these responsibilities is essential to avoid legal disputes and unexpected financial burdens.
Who Bears Site Risk Under JCT Contracts?
JCT contracts allocate risk based on the type of contract used. Here are the common contract structures and how they handle risk:
1. JCT Standard Building Contract
Under this contract:
✅ The employer typically bears the risk of site conditions unless otherwise stated.
✅ The contractor is responsible for executing the project based on the employer’s instructions.
Risk Example: If an undisclosed underground pipe is found, the employer is responsible unless stated otherwise.
- JCT Design and Build Contract
In a design and build contract:
✅ The contractor assumes greater risk, including design responsibility and unforeseen site conditions.
✅ The employer provides initial site information, but the contractor takes responsibility for completing the project within the agreed budget.
Risk Example: If structural issues arise due to an overlooked site condition, the contractor may bear the risk unless a contract clause shifts responsibility.
- JCT Minor Works Contract
This contract is used for small projects, where:
✅ The contractor is responsible for construction work but not for major site risks.
✅ The employer retains most of the liability for unexpected site conditions.
Risk Example: If adverse weather delays work, the employer may need to extend deadlines without penalising the contractor.
Key Site Risks and How to Manage Them
1. Ground Conditions
Unexpected ground conditions (e.g., contaminated soil, unstable land) can increase project costs.
✅ Solution: Conduct thorough site investigations before signing contracts. Get legal advice to ensure contracts clarify responsibility.
- Delays Due to Weather or Supply Chain Issues
Weather conditions and material shortages can delay construction timelines.
✅ Solution: JCT contracts typically allow for extensions of time. Our construction legal advice team helps businesses negotiate fair terms.
- Regulatory Changes and Compliance Issues
New laws or planning restrictions can affect project costs and timelines.
✅ Solution: Include flexibility clauses in contracts to account for regulatory changes. ApexCounsel provides commercial contracts advice to address such risks.
Why Legal Advice is Essential for Managing Site Risk
Managing site risk under JCT contracts requires careful contract negotiation and risk assessment. At ApexCounsel, we provide:
✔ Construction legal advice to ensure fair risk allocation.
✔ Contractor legal advice for negotiating and understanding obligations.
✔ Commercial contracts advice to draft clear and protective agreements.
✔ Intellectual property legal services for protecting designs and innovations.
✔ Trademark legal services and patent legal advice to safeguard construction-related IP.
If you are working on a construction project, get legal advice from ApexCounsel today to avoid costly disputes.