Standard practice? When can you alter a standard construction contract?

• Alex-Cosgrove, Partner Commercial Law, Brachers LLP

Whether your business is planning a small-scale construction project, such as an office refit or has grander designs, the contractors you choose for the job will no doubt ask you to sign a contract.

Typically, this will be one of several ‘standard form’ contracts that are used across the construction industry. However, just because a contract is ‘standard’ doesn’t mean you can t request any modifications before signing on the dotted line.

What are standard form contracts?

Several publishers produce suites of standard contracts (JCT and NEC are most common) which cover everything from minor renovations to major design and build projects. There are pros and cons to the various sets of standard contracts - your project manager, architect or construction lawyer can advise on the best suite for your scheme.

Why amend a standard contract?

Selecting the most appropriate form of contract for the particular scheme is the most important first step in contracting for construction works, however once that is done it is still very common to agree a set of amendments to those standard terms.

Most schemes (or their participants) have unique elements or requirements which are not adequately addressed in the generic wording of the standard form documents and, where that is the case, a schedule of amendments is always recommended.

What kind of amendments can be requested?

he specifics of those amendments will depend on the form of standard contract used, as JCT and NEC take different approaches on many key areas of risks. The required changes may be simple, such as imposing the employer’s mandatory policies on the contractor or significantly more material (e.g. having the contractor adopt works conducted by third parties prior to commencement of the works). However, the intention is always the same, namely, to tailor the generic standard form document to the specific risk allocations agreed between the parties. www.brachers.co.uk

If you are in any doubt about the terms of a standard contract, or whether these could be altered to better suit your business needs, it’s a good idea to consult a construction lawyer.