New editions of the JCT Suite of Contracts to be published in 2016

Posted by Rachel Gwilliam on
Rachel Gwilliam, Partner in our Construction teams, summarises the new features and upgrades in JCT contracts.

The Joint Contracts Tribunal (JCT) has recently published a revision to most of its suite of contracts, with the aim of increasing efficiency, effectiveness and value for money in public procurement.

Amendments intended to improve the JCT suite's 'functionality and user-friendliness', include:

  • clarification of the intellectual property provisions
  • the incorporation of the provisions of the JCT 2012 Named Specialist Update
  • the incorporation of provisions from the JCT Public Sector Supplement relating to fair payment, transparency and building information modelling (BIM)
  • reflecting the requirements of the Public Contracts Regulations 2015 (SI 2015/102) with provisions for use by public bodies, contractors and sub-contractors on public sector projects
  • the incorporation of provisions relating to the Construction (Design and Management) Regulations (SI 2015/51). The JCT had already published separate amendments sheets to update and amend the JCT suite. These amendments will be captured in the 2016 editions.

Various changes to the payment provisions intended to simplify the payment provisions and capture fair payment principles, include:

  • establishing, for fair payment purposes, interim valuation dates which will operate at main contract, sub-contract and sub-subcontract levels
  • allowing the monthly payment cycle for due dates for interim payments to continue after practical completion up to the due date of final payment
  • a new procedure for prompt assessment of loss and expense
  • greater flexibility in relation to fluctuations
  • consolidating the notice requirements for the service of payment and pay less notices
  • provisions for granting performance bonds and parent company guarantees, and allowing for sub-contractors to grant third party rights under the Contracts (Rights of Third Parties) Act 1999.

extending Insurance Option C so that it allows alternative solutions to the problem of obtaining existing structures insurance for a contractor. Generic provisions that apply to Insurance Options A, B and C will also be consolidated within the main text.

About the Author

Rachel specialises in construction and engineering matters, dealing with contentious, non-contentious and professional negligence issues.

Rachel Gwilliam
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