JCT Contract

[Ralfbean]

Hi, 
 

I see this topic has been touched upon a couple of times but wanted to see if anyone could help.

 

My lender is insisting on a fixed price JCT contract for a self build (technically isnt a self build then in my eyes!)

 

They will not accept a minor works contract, but after asking a number of times they have not specified which contract.

 

Would an intermediate JCT contract generally cover a self build with a budget of £150,000?

 

Thanks!

[nod]

I would perhaps try another lender 

As a self builder you should be able to cost the project for them 

With many self builders wanting to do some or most of the work themselves 

what they are asking for wouldn’t be possible for most self builders 

[RandAbuild]

Whilst a Minor Works contract might be suitable for some self builders who will employ a single, main contractor, the Intermediate form of JCT contract is likely to be over the top for a £150k job, in my view.

 

This is more about the lender having confidence in the way the contract would be administered, in that it would likely force you to employ a qualified Project Manager (architect or QS).

 

The bigger problem would be finding a builder prepared to work under such a formal form of contract. I suspect they would add costs to cover such things as Liquidated & Ascertained damages, retention and unforeseen delay etc.

 

I agree with @nod that another lender might be more flexible.

[nod]

We went to the largest warrantee companies prior to starting our build They asked for a main contractor Even his qualifications and references 

I told them the clue is in the title 

There will be no main contractor 

They didn’t seem to get it 

So I went elsewhere 

[Ralfbean]

Thanks for your advice, 
 

I don't think the lender has any idea of what they want! 

 

They want to try and make sure I don't spend too much money by making me spend more money on contracts/administrators and having to pay a fixed amount! They do not take into account that I am semi-skilled and can do the entire interior fit out myself.

 

Our solution is to hire my father in law as the main contractor and control the budget via him.

 

Needlessly over complicated but we might struggle to find an alternative lender at this time.