The RIBA Construction Contracts and Law Report 2022 has been published, with the results showing that JCT continues to be the most widely used provider of standard form contracts in the UK construction industry.
59% of respondents indicated that JCT contracts were the forms their organization used most often, while 71% said they had used a JCT contract in the last 12 months.
When asked to give reasons for their choice of contract, respondents said of JCT: “industry standard and court-tested”, “fair, equitable and well understood”, “standard fixed price contract understood by industry” and “simple and familiar contract”. ”.
The use of JCT contracts was particularly dominant in the sector for projects worth between £250,000 and £5 million.
The report also showed that the overall level of reported disputes within the industry continued to decline – from 44% in 2015, to 33% in 2018, to 27% this year.
The importance of sustainability and collaboration were key themes. 43% of respondents were involved in one or more contracts that included “expected sustainable outcomes” and 32% that included “measurable sustainability criteria”. 23% said ‘operational performance criteria’ had become a contractual requirement, while 21% referred to ’embedded carbon criteria’.
When it comes to collaboration, 57% of respondents said they have adopted collaboration techniques on some or all projects, and nearly a quarter have adopted collaboration techniques on all projects. 63% said collaboration techniques reduced the number of disputes and 61% said they improved the achievement of customer goals.
JCT was one of the first model contracting organizations to produce specific sustainability and collaborative working clauses in its suite of contracts and in its guidance note, Building a Sustainable Future Together.
The RIBA Contracts and Law Report 2022 survey was conducted by over 950 clients, contractors and consultants in January and April 2022. It focused on projects from the last 12 months. The report can be read and downloaded at https://www.architecture.com/knowledge-and-resources/knowledge-landing-page/riba-construction-contracts-and-law-report-2022.
