JCT Update

The Joint Contracts Tribunal (JCT) have launched a series of contract administration “packs” for use with the 2016 editions of its Standard, Design and Build and Intermediate contracts.  The packs, which are available digitally to download from the JCT website include a number of model admin forms/notices, including:

• Practical/Sectional Completion Certificate
• Certificate of Making Good
• Architect/Contract Administrator’s Instruction
• Notice of Intention to withhold/deduct liquidated damages
• Interim Certificate
• Pay Less Notice
• Final Certificate

Similar “packs” for the Minor Works and Homeowner forms of contract were released earlier this year.  

Although these forms will undoubtedly prove useful to parties responsible for administering JCT contracts, there are a couple of points of caution to bear in mind.

1. Firstly, whilst they are clearly prepared to be “back-to-back” with the standard JCT forms, if you have agreed any schedule of amendments, then you’ll need to carefully check that the model notices/forms still work with the amendments.
2. Secondly, the vast majority of problems that we construction lawyers come across in relation to notices, particularly those dealing with payments, is not the form of the notice, rather the fact it has not been issued in time.

It is also worth remembering that the JCT are to launch a whole new suite of 2024 edition contracts next year, and whilst we suspect that there will be some in the industry that continue to use the tried and tested 2016 forms to procure projects for some time yet, the proposed changes introduced in the 2024 editions may encourage a swifter uptake that previous updates.  By way of a reminder these changes will include:

• A new Relevant Event to cover epidemics and a revision to how “statutory powers” are dealt with and a change in terminology from “Statutory Undertakers” to “Statutory Providers”.
• The introduction of news grounds for the contractor to claim loss/expense, including epidemics, exercise of statutory powers directly affecting the works. Also in relation to unexploded bombs, contamination and asbestos.
• Legislative updates to take into account the Building Safety Act and the new insolvency grounds brought in under the Corporate Insolvency and Governance Act 2020.
• The LAD provisions will be updated to reflect the decision in Triple Point Technology Inc v PTT Public Company Ltd that LADs apply up to the date of termination, but not after.
• General modernisation and future proofing provisions.
• A new JCT Target Cost form of contract”

If you would like further information on any topics discussed within the article please contact Construction law specialist Simon Franklin.
 

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