JCT 98

The standard form of building contract ( JCT 98 ) seeks to clarify the contractual relationship between the employer and the contractor . As far as possible , ambiguities have been removed , but some nevertheless remain . if  such forms or conditions of contract were not availale , then the uncertainty between the two parties would be even greater . This could have the likely effect of increasing tendertotals . Under the present conditions of contract , the contractual risks involved aree shared between the employer and the contractor . Claims may arise most commonly under clause 26 , and these known as loss and expense claims . They may also arise due to a breach of contract . The contractor must make a wirtten application to the architect , in the first place , sating that a direct loss and expense has occurred or is likely to occur in the exrcution of the project . The contractor must further state that any reimburtsement under terms of the contract is unlikely to be sufficient ( clause 26.1 ) . This information should be given to the architect promptly in order to allow as much time as possible to plan for other contingencies .

  As soon as reasonably possible , the contractor should provie the architect with a written interim account providing full details of the paricular claims and the basis upon which it is made . This should be amended and updated when necessary or when required . If the contractor fails to comply with this procedure  this might prejudice the investigation of the claim by the architect and any subsequent payments by the employer to the contractor .


   The contractor is entitled to have such amounts included in the payment of interim certificates under clause 30.2.2 . However , in practice a large majority of claims are not agreed until the completion of the contract . in these curcumstances the contractor is entitled to receive part of the claim included in an interim certificate where this can be substantiated .