Contracts in Use Survey 2010 - RICS

Executive Summary
The survey captured contract details representing only a disappointing 3.9% of the value of new
orders in 2010. The conclusions should be read with this in mind.
• Over 97% of construction projects use a standard form of contract
• 88% of projects used one of the JCT family of contracts, up from 79% in 2007 and 78% in
2004
• All other forms of contract showed a reduction in usage
• The JCT Intermediate Form with Quantities and the Minor Works Form showed the greatest
increase in use; the IFC was most commonly used on contracts of £250,000 to £1m value
but the form was used on significant numbers of contracts up to £5m in value
• The JCT Minor Works Building Contract is the most commonly used form of contract in
Great Britain
• The JCT Design and Build Contract is the most commonly used contract for projects in the
ranges of £500,000 to £10m and £20m to £50m
• Some increase has been captured in the use of the Major Project Construction Contract but
only with projects in the £5-10m value range
• The use of ICE forms of contract has been in decline over the last three surveys
• Numerically the use of NEC contracts is largely unchanged but NEC now accounts for a
larger value of projects with its greater use on projects over £5m in value
• The use of GC/Works contracts has declined sharply
• The use of the ACA Standard Form of Project Partnering has fallen away, particularly in
conjunction with higher value projects
• The use of negotiated contracts has declined from its peak in 2007
• Two stage procurement has fallen back from the peak of its popularity in 2007
• Little use continues to be made of electronic tendering arrangements
• The number of projects secured under a framework arrangement has fallen compared to
2007 but, in 2010, frameworks were used on a higher value of projects and in conjunction
with a wider spread of project sizes
• The use of Bills of Quantities increased in 2010 compared to 2007 and BQs are used in
almost 25% of building contracts
• NEC Target contracts are now used in over 25% of contracts over £10m in value
• Only three instances have been recorded of the use of construction management (all on
small projects) and no instances recorded of management contracting for the first time in
the survey’s history
• Partnering with the use of formal agreements and arrangements has declined. Only 2% by
number and value of recorded projects involved any form of partnering agreement or
arrangement
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