JCT announces updates to its standard contracts
The JCT is set to release a number of updates to its suite of contracts over the course of the year with the first updates being to the Minor Works…
The JCT is set to release a number of updates to its suite of contracts over the course of the year with the first updates being to the Minor Works Contracts.
Speaking in February 2016 the JCT Chair, Richard Saxon, summarised some of the main changes which include:
- The standard CDM Regulations 2015 amendment sheets will be incorporated into the contracts;
- Updates will reflect the Public Contracts Regulations 2015 with provisions for use by public bodies, contractors and sub-contractors on public sector projects;
- Changed payment provisions arising from the government’s Fair Payment Charter with the introduction of Interim Valuation Dates through the contractual chain. Interim payment procedures will now also continue after practical completion up to the due date of Final Payment. It is also anticipated that payment procedures will be simplified including in relation to loss and expense;
- The update will see the inclusion of specific options relating to BIM (Building Information Modelling) following JCT’s practice note on BIM and Collaborative and Integrated Team Working;
- Provision for security documents such as performance bonds and parent company guarantees as well as the ability for sub-contractors to give third party rights as an alternative to a collateral warranty; and
- Insurance – Option C will be extended to allow alternative solutions to problems encountered by tenants and domestic owners in obtaining existing structures cover.
A further, more detailed note will be provided on the practical impacts of the updates as and when they are published.