Change Control Procedure JCT: What It Means

The change control procedure under a JCT contract is the formal process for adjusting the contract works, price, or programme after the contract is signed. It is governed primarily by the JCT’s variation provisions (usually Clause 5 in the Standard Building Contract) and the notification rules for loss and expense (Clause 4). This article explains how that procedure works in practice, what you must do to make a change valid, and where the common pitfalls lie.

Background: Why JCT Has a Change Control Procedure

JCT (Joint Contracts Tribunal) contracts are the most widely used standard form for UK construction projects. They are designed to balance risk between the employer (the client) and the contractor. Without a formal change control procedure, any alteration to the drawings, specifications, or timing could lead to disputes about cost and delay. The JCT procedure provides a contractual mechanism for the employer to instruct changes and for the contractor to claim additional time and money. It also protects the employer by ensuring that only authorised changes are paid for.

The key document is the JCT Standard Building Contract (SBC), but similar provisions appear in the Intermediate (IC), Minor Works (MW), and Design and Build (DB) forms. The principles are the same: a change must be instructed in writing, valued according to the contract’s rules, and recorded to avoid later disagreement.

How the JCT Change Control Procedure Works

The procedure follows a clear sequence, which is set out in the contract’s articles and clauses. Here are the main steps:

1. Instruction: The employer or the architect/contract administrator (CA) issues a written instruction to the contractor. This instruction must be clear about what is to be changed.
2. Valuation: The contractor provides a quotation for the change if requested, or the CA values the work using the contract’s valuation rules. The valuation includes labour, materials, plant, and any direct loss or expense.
3. Time adjustment: The contractor must notify the CA if the change affects the completion date. The CA then adjusts the contract sum and the completion date accordingly.
4. Record keeping: Both parties should keep a log of all instructions and valuations. This is often called a change register or variation log.
5. Payment: The adjusted amount is included in the next interim payment certificate.

For a change to be valid under JCT, it must be within the scope of the contract’s variation clause. For example, you cannot instruct a completely different type of building; that would be a new project. Also, the instruction must be in writing, unless it is a minor deviation that is later confirmed in writing.

Key Clauses and Terminology You Need to Know

Understanding the contract’s language is essential. Here are the most important terms and clauses you will encounter:

• Variation: A change to the works, including additions, omissions, or alterations to the design, quality, or quantity.
• Instruction: A written direction from the CA or employer that the contractor must follow.
• Valuation rules: The contract sets out how to price variations. This usually includes a fair and reasonable rate if there is no agreed rate.
• Loss and expense: If a change causes disruption, the contractor can claim for direct loss and expense under Clause 4. This is separate from the value of the work itself.
• Extension of time (EOT): If a change delays the works, the contractor must notify the CA within a specified period (often 14 days) to get an EOT.

One common misconception is that a verbal instruction is valid. In JCT, a verbal instruction is not valid unless it is confirmed in writing within a short period (usually 7 days). If the contractor proceeds on a verbal instruction, they risk not being paid.

How to Choose the Right Change Control Approach

Not all changes are the same, and the JCT procedure offers some flexibility. You can choose between a quotation or a valuation after the event. Here is how to decide:

• For large or complex changes, ask for a contractor’s quotation before the work starts. This gives price certainty.
• For urgent or small changes, allow the CA to value the work later using the contract’s rules.
• If the change is a substitution of materials, consider whether it affects the design or just the specification. This may change the valuation method.
• Always consider the impact on the programme. A change that seems small may cause a delay, so require the contractor to state the time effect in any quotation.

In practice, the best approach is to agree a written change order before work begins, even if the contract allows for later valuation. This avoids disputes and keeps the project on track.

Common Problems and How to Avoid Them

Change control disputes are the most common source of construction claims. Here are the typical problems and practical solutions:

• Lack of written instructions: Always confirm verbal instructions in writing. If the CA does not issue a written instruction, the contractor should write to the CA and ask for confirmation.
• Incomplete valuations: The contractor often forgets to include overheads, profit, or disruption costs. The valuation must include all direct costs and a fair allowance for profit.
• Late notification for EOT: JCT requires the contractor to notify the CA of a delay within a set period (often 14 days from becoming aware). Missing this deadline can lose the right to an EOT.
• Scope creep: Changes that are not formally instructed but are done as part of the works. This is risky for both parties. The contractor should not do extra work without an instruction.
• Disagreement on valuation: If the parties cannot agree, the contract provides for the CA to make a fair valuation. In extreme cases, it can go to adjudication.

A simple way to avoid these issues is to use a change control log that tracks every instruction, its valuation, and its impact on time. This is not a contractual requirement, but it is a practical tool.

Change Control Template for JCT Projects

Below is a generic template you can adapt for your project. It is not a contractual document, but a helpful record. Fill in the fields as you go.

Frequently Asked Questions

What is the difference between a variation and a change?

Under JCT, a variation is a specific type of change that is defined in the contract. It includes alterations to the design, quality, or quantity of the works. A change can be any alteration, but only a variation triggers the contractual valuation and time adjustment procedures. If a change is not a variation, it may be a breach of contract or a separate agreement.

Can the contractor refuse a variation instruction?

Generally, the contractor must comply with a variation instruction if it is within the scope of the contract. However, the contractor can refuse if the instruction is not valid (e.g., not in writing) or if it is impossible or illegal. The contractor should raise any concerns in writing and seek the CA’s confirmation.

How long does the contractor have to notify a delay for an extension of time?

Under JCT SBC, the contractor must notify the CA of a delay as soon as it becomes reasonably apparent, and in any case within 14 days of becoming aware (or should have become aware) of the delay. The notification must include the cause and the expected effect. Missing this deadline can result in losing the right to an EOT.

What happens if the parties cannot agree on the valuation of a change?

If the contractor and CA cannot agree, the CA must make a fair and reasonable valuation using the contract’s rules. If the contractor disagrees with the CA’s decision, they can refer the dispute to adjudication under the JCT’s dispute resolution procedure. Adjudication is a quick, binding process that can be used during the project.

Is a verbal instruction ever valid under JCT?

A verbal instruction is not valid unless it is confirmed in writing within a short period (usually 7 days). If the CA gives a verbal instruction, the contractor should write to the CA confirming it. If the CA does not respond, the contractor can treat the instruction as confirmed after the 7-day period. This is a common trap, so always document verbal instructions.

Does the change control procedure apply to design changes in a Design and Build contract?

Yes, but with a difference. In JCT Design and Build (DB), the employer’s requirements define the scope, and changes to those requirements are variations. However, if the contractor proposes a change to their own design, it may not be a variation unless the employer instructs it. The procedure is similar, but the valuation rules may differ.

Practical Tips for Smooth Change Control

Finally, here are some practical tips that go beyond the contract text:

• Hold a regular change control meeting with the CA and contractor to review pending instructions.
• Use a change control register from day one, even if the project is small.
• Always price the time impact of a change, not just the cost.
• Keep all correspondence and records of instructions, even if they seem minor.
• If you are an employer, make sure the CA has the authority to issue instructions. If not, the instruction may be invalid.

Change control is not just about paperwork; it is about maintaining a clear, agreed record of what is being built and at what cost. A disciplined approach will save time and money in the long run.

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