JCT Design and Build Contract 2024 – Key Changes
The Joint Contracts Tribunal (JCT) launched its new suite of Design and Build Contracts in April 2024, the first major update since 2016. The JCT also announced the 2024 edition of the Minor Works Contract 2024 in May. This Insight will focus primarily on the changes associated with the Design and Build suite.
An Online Launch Event took place 1 May 2024 and introduced users and the wider industry to the principal changes. The changes represent a greater change than from when the 2016 version replaced the 2011 version.
What are the Key Changes?
Legislative changes
Building Safety Act 2022 and related legislation
Updates to accommodate new Part 2A of the Building Regulations 2010
New Article 7 – Deals with appointment of Principal Designer and Principal Contractor for the new Building Safety regime
Article 6 - Extended to deal with appointment of Principal Designer and Principal Contractor under CDM Regulations 2015
Updated Definitions
Construction Act 1996
New Section 8 - Termination accounting and payment provisions added
No changes to the principles for calculation amounts due
Due date for termination is defined in 8.7, 8.8 and 8.12. Definition is different in each
New sub-section 8.13 for 14 days from due date
Corporate Insolvency and Governance Act 2020
New insolvency grounds added to section 8
Two new company insolvency tests included
Future proofing
Construction Playbook*
*The Construction Playbook was published by HM Government in December 2020 as a guide on sourcing and contracting public works projects and programmes.
Within the elements within the Construction Playbook, the following three previously supplemental provisions have been repositioned as mandatory.
Collaborative Working Article
Sustainable Development and Environmental consideration clause
Notification and Negotiation of Disputes clauses
These previously were included in the JCT 2016 suite but only as Schedules to opt in or out of them. In the 2024 suite, these are mandatory and moved into the main body of the Contracts.
There has also been the adoption of gender-neutral language and increased flexibility around the use of electronic notices.
Modernising and Streamlining
Extensions of Time
The interim Extension of Time (Clause 2.24 & 2.25) provisions have been updated and include revised timescales associated with applications. The Employer now has 14 days to request further information from the Contractor following any application. The period for determining an interim Extension of Time application has been reduced from 12 to 8 weeks. These reduced timescales aim to encourage timely reviews of claims which streamline the process.
Relevant Events and Relevant Matters
Epidemics have been included as a new Relevant Event and optional Relevant Matter. The inclusion has come into existence on the back of the Covid epidemic, but with the foresight to understand other epidemics may occur. Parties were relying on the Force Majeure clause during Covid and for any new works, specific Clauses were being included to cover any Epidemic related delays.
An expanded Relevant Event relates to the exercise of a statutory power to broaden inclusion of passing laws and changes to existing laws. This is presumably linked to the events around Covid and the updating of laws at short notice.
While not an express Relevant Event clause, the existing clause relating to the discovery of antiquities now extends to include the discovery of other unforeseen conditions. These unforeseen conditions extend to include unexploded ordnance (UXO), contaminated materials and asbestos.
While the previous clause included for the discovery of antiquities, this revision will likely be met with a sigh of relief from contractors who have previously had to take the burden of risk relating to ground conditions.
New for JCT 2024
Target Cost Contract (TCC)
The introduction of a new contract family, JCT Target Cost Contract (TCC), comprising main contract, sub-contract, and guide.
Conclusion
The JCT celebrates the launch of the new Contracts at the Parliamentary Reception on 7 June 2024, thanking those whose contributions made the update possible. It will be interesting to see whether those in the industry will be as appreciative of the changes.
As with any change to familiar documents, hesitation is typically met. Ultimately such changes are necessary to reflect changes in the industry as well as wider matters.
The selection of either the 2016 or 2024 suite for your new project remains up to the parties. We suspect hesitance will remain in the implementation of the 2024 suite, with such parties allowing others to test the waters with their use.
Our view, as with the updates from the 2011 to the 2016 Contracts, the earlier the new Contracts are implemented, quicker familiarisation and transition is provided, which only serves all parties moving forward.
Although we still expect continued amendments to be undertaken by the respective parties regardless of these updates, the implementation of the 2024 Contracts could reduce the number of amendments.
While the Design and Build and Minor Works suites have been updated, it will only be a matter of time before the remaining suites are updated over the remainder of 2024.
Insight provided by Lewis Livesey.
