It is a well-known fact that there are advantages and disadvantages of using standard form building contracts. In South Africa, there are numerous standard form construction contracts developed by the JBCC and some by Master Builders South Africa and other industry bodies.

Some of the well-known benefits of using standard form construction contracts are as follows:

• Since documents are widely used in the industry, the contract terms are generally well understood by parties involved in construction;
• It reduces the cost of contracting by eliminating the need for custom contracts for individual tenders;
• It reduces exploitative clauses by unscrupulous professionals and clients/employers;
• It eliminates the scope for elongated negotiations, and thus, speeds up the bidding and contracting process;
• It reduces disputes and un/necessary litigations while providing alternative dispute resolution in the event of a dispute;
• It uses the same terms every time a contract is formed. This makes it easy for people to become familiar with the terms of standard contracts of their industry.
• Consistency in contracts means less room for deviation from the terms set out in the contract. It prevents employers from making any changes to the contract without informing their clients.

Over time, standard form contracts establish a body of case laws that can be referred by parties in case of disagreement over any issues. This benefits the whole industry.

When in doubt whether a standard form contract is appropriate, and which one to use, contact your nearest Master Builders Association office for advice. Members are also encouraged to consult with their attorneys when not sure about some clauses in the standard form contracts.