Joint Contracts Tribunal 2016

The Joint Contracts Tribunal (JCT) publishes standard forms of contract for use in the construction industry. At last count, there were over 100 construction- related contracts published by the JCT and it has now announced that new 2016 versions of their contracts are to be made available.

So far, the minor works suite of contracts has been updated, together with the short form of sub-contract and the sub sub-contract. However, further suites of contract are likely to be updated throughout the rest of this year.

The new versions bring simpler payment provisions, with interim and final payments using a common procedure. The insurance provisions have been made more flexible, the CDM Regulations 2015 have been incorporated, and termination rights have been extended to include the Public Contracts Regulations 2016.

Changes being promised for the further suites of contract include:

• fair payment, transparency and BIM
• monthly interim payments, even after practical completion
• prompt assessment of loss and expense
• flexibility of fluctuation clauses
• provisions for performance bonds and parent company guarantees
• Third party rights from subcontractors
• Improved functionality/user- friendliness

When entering into a construction contract that is governed by a JCT contract, it will be important to check which version applies. If no specific version applies, then the latest published version will be the one that governs the terms. As there will be significant changes to the payment process, as well as assessment of loss and expense, parties will have to make sure that they are up to date with the procedures. Not knowing them could result in losing out!

For further advice on any JCT contracts, please contact Peter Allen.