HM Insights

Construction snapshot: Joint Contracts Tribunal announces key features of new JCT contracts

The Joint Contracts Tribunal (JCT) recently made an announcement of the new key features which are to be incorporated into the upcoming JCT 2016 family of contracts due for release at some point this year. Note that once these new forms are officially published, it is likely that The Scottish Building Contract Committee (SBCC) will follow suit and will issue similar updates to the Scottish equivalent SBCC forms also.

Construction Contract Jct Standard Form Contracts Sbcc

The main features which are to form part of the new family of JCT contracts and will amend/ supplement the current standard forms include:

  • The incorporation and updating of the provisions from the JCT Public Sector Supplement relating to Fair Payment, transparency and BIM;
  • Provisions to reflect the CDM Regulations 2015 (note these are already available as separate amendments sheets from the JCT website);
  • Clauses to reflect the new Public Contracts Regulations 2015 with provision for public bodies, contractors and sub-contractors on public sector projects;
  • Changes related to payment to reflect Fair Payment principles and also consolidation of the general payment and notice provisions. Notably, interim payment due date provisions and monthly cycle of dates which are currently applicable up to practical completion will now continue to apply after practical completion up to the due date of Final Payment. Also, a new ascertainment procedure for assessment of Loss and Expense will be incorporated;
  • Provision for the grant of performance bonds and parent company guarantees;
  • An extension to Insurance Option C and also consolidation of the more general insurance provisions across all of the Insurance Options (relating to evidence of insurance, insurance claims and reinstatement work); and
  • Some additional further changes to improve the functionality and user-friendliness of the suite of contracts.

It is assumed that these forthcoming features will be received positively within the industry, many of which are already frequently provided for in bespoke schedules of amendments to the standard forms which are commonly issued by employers for incorporation into building contracts.

We will issue a further snapshot relating to this new suite of contracts when they are published and available for comment.

Watch this space ...

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