The construction industry, as with wider society, is facing a period of increasing economic uncertainty and volatility. For the built environment in particular, in addition to the rises in general inflation and interest rates, labour availability and materials indices are even more uncertain with supply problems and shortages contributing to specific price increases.

One way that a JCT contract can help to minimise the impact of economic volatility on a construction project is with the use of fluctuations provisions. In JCT contracts generally, three options for incorporating fluctuations provisions are provided (Fluctuations Options A, B & C), depending on the requirements of the project and the contracting parties.

This page includes links to articles, information, and training resources to explain the principle of fluctuations and how they work, introduce the JCT options available, and provide more detailed training on their use, how the options are incorporated within JCT contracts, and how they are calculated.

Articles

The Risk of Volatile Prices on a Building Project

(published December 2022)

Managing Construction Price Inflation

(published December 2022)

Increasing Costs and Fluctuations Provisions

(published October 2021)

Three Options for Managing Inflation Risk using JCT Contracts

(published October 2022)

(Note: The focus of JCT articles is restricted to construction projects in England and Wales which are using JCT contracts.)

JCT Training

Our latest JCT Training video module, ‘Fluctuations and JCT Contracts’ provides a wealth of information of the fluctuations options for JCT contracts, how these are incorporated, and how each of the various options are administered.

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Note – JCT does not provide consultancy or legal advice on individual cases, matters of practice or courses of action. Professional legal advice should be sought for matters relating to your individual case.