Episode 104 - JCT Management Contract

The JCT Management Building Contract serves large-scale projects requiring early site commencement where full design information remains incomplete. The employer appoints a management contractor early in the design phase to enhance cost-efficiency and buildability, while the consultant team develops the design. Construction proceeds only after a formal notice to proceed, with the management contractor overseeing works contractors under prime cost plus a management fee. Key contractual elements include detailed provisions for pre-construction and construction phases, specific insurance options for new and existing structures, and robust termination rights for both parties. Dispute resolution follows a tiered approach, prioritizing mediation and adjudication before resorting to arbitration or litigation. This procurement method demands meticulous record-keeping and clear communication between the employer, management contractor, and contract administrator to navigate complex liabilities and project changes effectively.