Why Home Insurers and Lenders Often Ask for a JCT Contract — and Why You Should Too
If you’re arranging home insurance or finance for a building project, you may be asked to provide a copy of your building contract before cover or funding is released.
While it’s not always mandatory, insurers and lenders want reassurance that the works are being carried out under a formal, legally recognised agreement. A JCT contract is the construction industry’s preferred way of providing that clarity and protection.
At ONFORM, we prepare and issue JCT contracts for private clients, developers, and property owners in England, ensuring each document reflects the project scope, responsibilities, and insurance provisions in full compliance with current legislation.
What a JCT Contract Does
A JCT contract is far more than paperwork, it’s a structured agreement that:
Defines the relationship between client and contractor
Allocates responsibility for insuring the works and existing structure
Establishes payment terms, timescales, and variation procedures
Sets out obligations for workmanship, quality, and defects
Protects both parties if disputes or delays arise
Without it, you’re relying on informal arrangements or a contractor’s quotation, which gives insurers and lenders little assurance about who carries risk during construction.
💡 Tip: If your contractor has only issued a quote or estimate, contact ONFORM’s JCT Contract Drafting Service to formalise the agreement before works start.
Why Lenders and Insurers Often Ask for One
Financial institutions and insurers increasingly view formally executed contracts as an essential part of their due diligence process.
A professionally drafted JCT contract:
Clarifies Risk Ownership — defines exactly who insures the works and when liability transfers.
Demonstrates Professional Oversight — shows that the project is managed under a recognised legal framework.
Supports Funding and Cover Decisions — provides lenders and insurers with confidence in the project’s structure.
Minimises Claims Uncertainty — offers a clear point of reference should an incident occur during construction.
In short, a JCT contract gives your insurer and lender confidence — and gives you protection.
The Risks of Proceeding Without One
Starting work on a handshake or informal quote can lead to problems later. Without a properly drafted contract:
Insurance responsibilities can become unclear
Payments, changes, and timescales may be disputed
Defects and delays are harder to resolve
Insurers may be reluctant to cover loss or damage
A professionally prepared JCT eliminates uncertainty and ensures every stage — from pre-contract to completion — is clearly defined.
👉 Learn more about ONFORM’s Contract Administration Service to see how we ensure your JCT contract is properly managed throughout construction.
Why Professional Drafting Matters
Completing a JCT contract might appear straightforward, but small omissions or inconsistencies can cause major issues later.
Common mistakes include:
Incorrect insurance options ticked
Missing or contradictory clauses in the appendices
Poorly defined project scope or exclusions
Unclear payment or completion terms
At ONFORM, we make sure every section of your JCT aligns with the insurance position, lender requirements, and procurement route.
Our team issues a fully verified, ready-to-sign contract pack, ensuring you can start on site with complete confidence.
✍️ Need your JCT prepared correctly?
Request a quote today for professional JCT contract drafting by ONFORM.
How ONFORM Can Help
ONFORM is a Chartered Building and Quantity Surveying and Construction Consultancy delivering JCT conrtracts across England.
We provide:
Expert JCT contract drafting and review
Employer’s Requirements and Preliminaries preparation
Advice on insurance and risk allocation
Guidance on payment mechanisms and completion terms
Optional Contract Administration / Employer’s Agent services for full oversight
Our clients range from private homeowners and developers to contractors and design teams — all benefiting from clear, compliant, and properly executed contract documentation.
📞 Contact ONFORM to have your JCT contract professionally prepared and issued.
Conclusion: Protect Your Project Before It Starts
Insurers and lenders don’t ask for contracts to make life difficult — they do it because a properly structured agreement reduces risk for everyone involved.
A JCT contract is the clearest, most recognised way to achieve that. It protects your investment, clarifies liability, and ensures your project proceeds on solid legal ground.
Start your project the right way — with a properly drafted JCT contract from ONFORM Construction Consultancy.
📞 Contact ONFORM
Areas Covered: Nationwide