Ahead of the release of the Joints Contracts Tribunal (JCT) 2024 suite of contracts, Partner Pippa Beesley and trainee Esther Roberts outline what will change, and how these enhancements will modernise the contracts and bring them in line with legislative updates.
The Joints Contracts Tribunal (JCT) is set to publish a new suite of contracts, JCT 2024, which will launch with the Design and Build 2024 Contracts on 17 April 2024. It is anticipated the new 2024 form of contracts will incorporate the following changes:
New contract family
The JCT 2024 will introduce a new contract family, the JCT Target Costs Contract. This will comprise a main contract, sub-contract, and guidance notes.
Modernisation
The JCT 2024 will adopt gender neutral language and provide greater flexibility for executing contracts by electronic signature and serving electronic notices.
Extension of time (EoTs)
The employer’s response time to applications for an extension of time is to be reduced from 12 weeks to eight weeks.
‘Statutory undertakers’ will be defined as ‘statutory providers’.
There will be new relevant events for extensions of time which will include epidemics and updates as to how ‘statutory powers’ are dealt with.
Relevant events dealing with antiquities will deal with unexploded ordnance (UXB), contamination and asbestos.
Optional relevant matters will also be provided for.
Loss and expense
There will be additional grounds for claims for loss or expense to reflect the above updates to the extensions of time. The contract particulars will allow parties to select optional additional grounds.
Liquidated damages and termination
JCT 2024 will make clear that liquidated damages apply only up to the date of termination and general damages will be available thereafter. Whether liquidated damages are a ‘cap’ to a general damages claim will therefore likely be important.
The ‘due date’ for the final payment after termination will be added to remove any existing uncertainty. This will reflect the changes to the Construction Act.
Disputes
The JCT 2024 aims at the avoidance or early resolution of disputes.
The existing supplementary provision 10 requiring ‘good faith’ negotiations between senior executives will no longer be optional. There will be a requirement for a party to notify the other potential disputes and for senior executive to meet as soon as practicable to negotiate and avoid dispute.
Fluctuation
In response to the issue of price uncertainty in the construction industry, JCT has introduced a Fluctuations Hub which offers guidance on fluctuation options in JCT contracts. There are plans for these provisions to be moved to an online document.
Legislative changes
The JCT 2024 will contain updates to reflect the Building Safety Act 2022 and its secondary legislation.
There will also be changes to reflect the new insolvency grounds in the Corporate Insolvency and Governance Act 2020.
Future proofing
Previously optional supplemental provisions of collaborative working, sustainable development, and environmental considerations will be incorporated into the main contract.
This is the first major update to the JCT suite since 2016 and we are looking forward to working with clients on this new form.
Pippa Beesley is a partner in the real estate, planning and construction team, specialising in non-contentious construction, with a strong track record in advising developers, purchasers, tenants, funders, contractors and consultants. Esther Roberts is a trainee solicitor, previously in the real estate, planning and construction team.
Get in touch
If you would like to speak with a member of the team you can contact our real estate planning and construction solicitors; Holborn office (Email Holborn) +44 (0)20 3826 7523; Kingston office (Email Kingston) +44 (0)20 3826 7518; Putney office (Email Putney) +44 (0)20 3826 7518 or complete our form.
