JCT Management Building Contract 2008

A few weeks ago the JCT unveiled two of its final new contracts

for 2008, the JCT Pre-Construction Services Agreement for two-stage

tendering which comes in General Contractor and Specialist forms.

Both are designed for use under both traditional and design and

build procurement.

No doubt much will be written about them since the construction

market has embraced two-stage tendering in recent years. The JCT at

the same time launched a public sector Consultancy Agreement,

maintaining a recent trend amongst contract publishers for

introducing appointments which can be used to appoint an entire

professional team.

That is not to say that the JCT has suddenly come over all

populist. In fact, its first contract launch of the year was a new

version of its management contracting suite of contracts. The RICS

Contracts in Use Survey of 2004 revealed that, of the 2,300 plus

projects considered, a mere 0.2% used management contracting.

The JCT's approach seems to be to possess a contractual

solution for all procurement strategies, hence the update to its

management contract. Usage of management contracting has plummeted

in the last decade, resulting in a muted initial response to its

2008 revision. Partly this decline is due to bad publicity from a

few high-profile developments under management procurement routes

but the increasing popularity of design and build with its single

point of responsibility has also contributed.

Management contracting is an option for fast tracking

construction works whilst the design process is still underway. A

Management Contractor is engaged to manage and supervise the

construction process and assist the Employer during both the

pre-construction period and the construction phase. The works are

divided into packages and the Management Contractor appoints Works

Contractors (usually by competitive tender) to carry these out. The

Management Contractor does not carry out any works itself and the

Employer engages the professional consultants.

The current management contract suite supersedes the 1998

version (save for the collateral warranties, which are new to the

suite, and the Invitation to Tender and Tender documents which are

surplus to requirements). A Management Works Contractor/Employer

Agreement within the suite sets out the obligations between the

Works Contactor and the Employer.

The main changes are summarised below:

Recognising that the previous method of calculating the

management fee could give the Management...