The Joints Contracts Tribunal (JCT) is set to publish a new suite of contracts for 2024, which kicked off in April with their Design and Build 2024 contracts.
We ask Alex what’s changing and how these changes will bring the contracts up to date with the latest legislations.
What will change in the JCT 2024 suite of contracts?
There’s a lot of changes this time around, which makes sense because a lot has changed in terms of building safety regulations, costs, and demand.
Main changes will be made to EOTs, Loss and Expense, Liquidated Damages and Termination, and future proofing.
There will also be a focus on modernisation, disputes, and fluctuations; with the addition of a new contract family and other legislative changes.
What is the new contract family?
The new contract family, which will include a main contract, subcontract, and guidance notes, is called the Target Costs Contract. We’re anticipating that there will be more information released around this in the coming weeks.
Extension of Time, what’s changing there?
Well, there’s a few notable changes here. The new suite will introduce ‘Statutory Providers’ which will replace ‘Statutory Undertakers’. New relevant events for extensions of time, that will include updates on how ‘statutory powers’ are dealt with, will be introduced alongside this.
Further to this, there will be relevant events dealing with antiquities which will handle asbestos, contamination, and UXBs (unexploded ordnance).
The other main change will be made to employer’s response time to applications for an EOT. The new suite will reduce this from twelve weeks to eight going forward.
Explain what’s happening to Loss and Expense?
Parties will now be able to choose optional additional grounds, according to the contract particulars. Again, we’re waiting to hear more details about this, however, following the changes to EOTs, there will be additional grounds for claims for loss or expense in the new JCT 2024 suite of contracts.
What’s happening with Liquidated Damages and Termination?
Where there has been changes to the Construction Act, final payment due dates following termination will be added. This has been done with the hope that it will extinguish any existing uncertainty.
JCT 2024 will also emphasise that general damages will be available after liquidated damages, which only apply up to the date of termination. This is an important element which will help distinguish whether liquidated damages are, in fact, a cap for general damages.
How is future-proofing part of the JCT 2024 suite of contracts?
The new suite is making mandatory provisions regarding sustainable development, collaborative working, and environmental considerations. Before, these had only been optional.
And the legislative changes?
The JCT 2024 will incorporate revisions to align with the Building Safety Act 2022 and its associated regulations. Additionally, adjustments will be made to accommodate the updated insolvency provisions outlined in the Corporate Insolvency and Governance Act 2020.
How is the JCT 2024 suite of contracts modernising?
Outdated terminology has been highlighted across the board, therefore, the JCT 2024 will be embracing gender-neutral terminology going forward.
And when it comes to tech, the JCT is updating and enhancing flexibility for contract execution through electronic signatures and the delivery of electronic notices in line with advancing AI.
Tell us about changes to disputes
One of the primary objectives of the JCT 2024 is to prevent/promptly resolve disputes. Supplementary provision 10, which currently allows for ‘good faith’ negotiations among senior executives, will become mandatory.
Parties will also be obligated to inform each other of potential disputes, prompting senior executives to convene at the earliest opportunity to negotiate and pre-empt conflicts.
And fluctuations?
To address the challenge of price fluctuations within the construction sector, JCT has launched a Fluctuations Hub providing insights into fluctuation possibilities within JCT contracts. These provisions are slated to transition to an online platform for greater accessibility.