The JCT Major Project Construction Contract is designed for large-scale construction projects where major works are involved. It is used by employers who regularly procure large-scale construction work, and the work is carried out by contractors with the experience and ability to take greater risk than would arise under other JCT contracts. Major Project Construction Contracts are suitable for projects procured via the design and build method.
Features of projects using the Major Project Construction Contract:
- The employer and contractor have their own detailed in-house procedures, so only limited procedures need to be set out in the contract conditions. As the contractor assumes more risk than in other JCT contracts, they, along with the employer and their respective advisers and sub-contractors are experienced in detailed risk management and undertaking large commercial projects.
- The contractor is responsible for the design, as well as completing the works. The scale of design work to be carried out by the contractor can vary. Sometimes the contractor will complete a design based on a concept provided through the employer’s advisers. Other instances may call for the contractor to be responsible for producing and completing the design right from the outset, either through their in house team or employing their own specialist designers.
- Often in Major Projects, a ‘novation’ agreement is put in place so that the architect or designer who initially worked with the employer continues to complete the design under the responsibility of the main contractor.
- The employer usually employs a representative to exercise their powers and functions under the contract.
- Project can be carried out in sections.