JCT 2024:

The Joint Contracts Tribunal (JCT) is due to publish new editions of its contracts in 2024. The core themes and main changes that we currently expect to see in 2024 are detailed in the factsheet below with key points summarised as follows.

Modernising and streamlining

• Including adoption of gender-neutral language, and increased flexibility around the use of electronic notices.

Extensions of Time 

• New relevant events will be introduced to include epidemics and the exercise of ‘statutory powers’. The time available to the Employer to assess interim extensions of time will be reduced from 12 weeks to 8 weeks from receipt of the Contractor’s Particulars.

Loss and Expense

• New relevant events and relevant matters will be introduced including new provisions dealing with unexploded ordnance, contaminated materials and asbestos.

Liquidated Damages

• Where works are not complete at termination, LADs can be levied up to termination and subsequently general damages following the Supreme Court’s decision on Triple Point Technology Inc -v- PTT Public Company Ltd.

Payment due date after termination 

• Addition of a payment due date after termination which will reduce uncertainty.

Disputes 

• A new requirement for parties to notify potential disputes to senior executives to seek a negotiated settlement but this will not cut across either party’s right to refer a dispute to adjudication at any time. In place of a shortlist, parties can now choose their own adjudication nominating body.

Fluctuation

• Incorporation of the new JCT Fluctuations Hub launched in 2023, a resource to help the construction sector respond to growing economic uncertainty and volatility in the market and how to correctly apply the options available under the JCT suite. The fluctuation provisions will also be moved to an online document.

Legislative changes

• Major updates in relation to the Building Safety Act; Termination accounting and payment provisions reflecting the Construction Act; and new insolvency grounds reflecting the Corporate Insolvency and Governance Act 2020.

Future Proofing

• Reflecting the objectives of the Construction Playbook, and incorporating existing optional supplemental provisions relating to Collaborative Working, and Sustainable Development and Environmental Considerations.

New form of contract

• The introduction of a new contract family, JCT Target Cost Contract (TCC), comprising main contract, sub-contract, and guide, which will likely be a alternative to the NEC Option C ECC form of contract.

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