JCT Minor Works Contract
The JCT Minor Works 2024 (MW) Building contract suite is for smaller, lower-value construction projects. It sits within the JCT contract suite, which includes contracts to cover all project scales.
Here we explore some of the projects it’s best suited to, and when it might be your best option.
What is the JCT Minor Works Contract?
JCT Minor Works contracts are designed for projects that take a year or less to complete, and have a contract value of under £500,000. In practice, this includes extensions, refurbishments and basic maintenance projects.
For more complex projects, or if you’re expecting significant scope creep, one of the more comprehensive JCT contracts may be more appropriate. Minor Works is not intended for projects that need bills of quantities, detailed control procedures or provisions to govern work carried out by specialists.
Neither FIDIC nor NEC offer contract suites directly comparable to JCT Minor Works. The closest equivalent is the RIBA Domestic Building Contract (DBC). That said, both FIDIC and NEC offer contracts which can be used for smaller projects, so it’s worth exploring all options.
Features of the Minor Works contract
The key feature of the Minor Works contract is its simplicity. It’s streamlined to keep smaller projects efficient, without getting bogged down in layers of complexity.
There are a few things to consider when deciding whether to use a Minor Works contract.
Who is responsible for the design?
In the standard Minor Works contract, the employer is responsible for the project design. This means they must supply the contractor with detailed drawings. If you don’t want to provide designs, you can use the Minor Works with contractor’s designs (MWD) contract, which allows the contractor to produce design drawings. If you do this, you must provide the contractor with detailed project documents so they know what is expected of them.
Who administers the project?
Minor Works projects are usually administered by either the project architect or an appointed contract administrator.
How does the Minor Works contract deal with variations to the work?
The Minor Works contract allows for variations to be made by the employer and by the contractor. However, all adjustments must go through the contract administrator. If the employer instructs the contractor directly, this is outside the scope of the contract.
What if the contract is not completed on time?
If the contractor does not complete on time (without an agreed extension of time), the employer can claim pre-agreed liquidation damages.
These damages are not punitive; they are intended to reimburse the employer for their loss. If the contractor does not accept the damages, this can result in a dispute.
How are disputes handled?
Dispute resolution is streamlined in Minor Works compared to other JCT contracts. Key points include:
- Mandatory good faith negotiations. Parties must act in a ‘spirit of trust and respect’, and negotiate directly before starting disputes. The aim here is to minimise the need for disputes through early negotiation.
- Parties can specify their preferred adjudicator (such as RICS) in the contract. Adjudicators are expected to rule within 28 days, and their decisions are binding unless overturned by arbitration or litigation.
- They can also name an arbitrator (such as CIArb) in the contract. Adjudication awards can be enforced by the courts if required.
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Minor Works Contract 2024 Update
The Minor Works contract had a major update in 2024. Some revisions were incorporated from the update to the wider JCT suite, while others were specific to Minor Works. These are some of the key changes.
Language
As with other contracts in the 2024 update, the Minor Works Contract now uses gender-neutral language throughout.
Electronic communication
As of the 2024 update, electronic signatures are specifically allowed in JCT contracts, including Minor Works. Most notices can also be served via email, and parties are encouraged to provide email addresses. However, key notices – relating to default or termination – can be served via email only if parties agree to this provision in the Contract Particulars (CPs).
Building Regulations
The Minor Works contract now requires parties to specify a Principal Designer and Principal Contractor. These roles are to ensure compliance with the Building Regulations Act. The people appointed to them must have the skills, knowledge and experience to fulfil the roles.
Termination payment structure
The 2024 update defines ‘termination payment’ to provide consistency across different termination scenarios. The main changes relate to the process and timing of the termination payment.
Extension of time adjustments
Interim extension of time reviews and procedures have been changed to speed up the process. The time for interim assessment has been reduced from 12 to 8 weeks, although the final extension of the time review timetable is unchanged. Relevant events that can lead to an extension of time now include a provision for epidemics, taking into account government guidance.
Insolvency and dispute resolution
2024 updates to the Minor Works contract expand the insolvency definitions in line with the Corporate Insolvency and Governance Act of 2020.
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