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Key definition
JCT definition

What does JCT mean? JCT refers, in practice, to the Joint Contracts Tribunal and its suite of standard-form construction contracts used to procure building works and services. It is an industry shorthand rather than a term defined in legislation or case law. The JCT suite (including Design and Build, Standard Building Contract, Intermediate, Minor Works, term and framework contracts, sub-contracts and collateral warranties) provides a structured allocation of risk and clear provisions on design responsibility, payment and retention, variations, extensions of time, liquidated damages, loss and expense, insurance, termination and dispute resolution (including adjudication under the UK “Construction Act”). Usage varies by jurisdiction: - England and Wales:...

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NEC3/NEC4 termination: grounds (R1 to R22), procedures and financial consequences; insolvency and procurement considerations

Practice notes
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Termination

The NEC contracts set out detailed termination provisions, identifying when parties may terminate and the resulting effects and procedures, though they are less far-reaching than those included in JCT contracts.

Under NEC, it is the Contractor’s obligation to Provide the Works that is ended, not the contract, and this deliberate distinction ensures, as intended by the drafting, that post-termination provisions continue to operate.

Even once that obligation ends, in some circumstances specified by the contract the Contractor must reimburse the Client for additional Costs of completing the works.

This Practice Note addresses clauses in the NEC3 and NEC4 Engineering and Construction Contract, with comparable terms across other NEC contracts, and should be read with Practice Note: Termination of a construction contract to provide context.

For termination guidance under the NEC Professional Service Contract and the NEC Supply Contract, see the respective Practice Notes: NEC Professional Service Contract and NEC Supply Contract. Termination should always be approached with care...

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Web page updated on 21/05/2026

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