The next suite of JCT contracts, JCT 2024, was announced by JCT at its annual construction industry parliamentary reception held at the House of Commons on Friday, the 16th of June 2023. Before we continue, this information has been cited from brodies.com. The main features of the JCT 2024 Suite have been reported, which includes updates and changes corresponding with the following work streams:
Modernizing and Streamlining
JCT has reported that the new editions will take a progressive approach with the adoption of gender-neutral language, differing from previous editions’ uses of male pronouns only. JCT has also confirmed that the new editions will include provisions for notices to be sent electronically, as well as allowing for contracts to be signed electronically.
Extensions of Time
The 2024 edition of JCT will introduce new relevant events to cover epidemics. They’ll update Clause 33 powers to be considered and redefine ‘Statutory Undertakers’ to ‘Statutory Providers’. In addition, the period of time for an employer to assess an interim extension of time will be reduced from 12 weeks to 8 weeks from receipt of the contractor’s particulars.
Loss and Expense
It has been reported that the contract particulars will be updated to provide optional additional grounds for the contractor to claim loss and expense. Such optional grounds will reflect the newly introduced relevant events, i.e., epidemics, and the exercise of statutory powers directly affecting the work. It is also reported that the relevant event dealing with antiquities will be extended to deal with unexploded bombs, contamination, and asbestos.
Liquidated Damages and Termination
Liquidated damages clauses apply up to the termination of the contract but not after. Where works are to be complete at termination, LDs can be levied up to the termination, and general damages for delay can be claimed thereafter. Clear wording will be required should the parties wish to agree on a different approach. Also, a due date for the final payment after termination will be added, removing the uncertainty as to when final payment after termination is due.
Disputes
The new editions will introduce a requirement for the parties to notify potential disputes and for senior executives to meet early to seek a negotiated settlement, in an approach similar to what is set out in NEC4. Importantly, this will not encroach across either party’s right to refer a dispute to adjudication at any time. Parties will now be able to choose their own nominating body or appointer for adjudication and arbitration, as opposed to them being required to choose them from the original shortlist.
Fluctuation
Price uncertainty has been one of the key issues facing the construction sector in recent years. JCT has recently introduced a Fluctuations Hub, offering guidance on fluctuation options within its contracts. It also plans to increase the prominence and accessibility of the provisions by moving them to an online document.
Legislative Changes
It is also reported that JCT 2024 will contain major updates in respect to the Building Safety Act and its secondary legislation, once finalized. Changes will also be implemented in light of the new insolvency grounds introduced into the Corporate Insolvency and Governance Act 2020.
Future-proofing
The new editions will include changes to reflect the objectives of the Construction Playbook, and incorporation of previously optional supplemental provisions relating to collaborative working, sustainable development, and environmental considerations into the main contract.
New Form of Contract
It has been announced that JCT 2024 will introduce a new contract family, JCT Target Cost Contracts, which will comprise a main contract, subcontract, and a guide.
