JCT 2024 Suite Flashcards
Some details on the JCT Suites within the industry?
JCT most widely used standard form contract in UK - Accounting for 70%
When previous changes to the JCT Suite?
2011
2016
What are the changes to the JCT Suite for 2024? (general overview)
Main features:
* Modernising & Streamlining
* Gender neutral language
* More flexibility for online/digital use
New for JCT 2024
* Introducing JCT Target Cost Contract (TCC)
* Family of contracts: Main C, SubC & Guide
Legislative changes
* Building Safety Act 2022
* Termination accounting & payment provision to reflect The Construction Act (HGCRA
1996)
* New provisions above to reflect Corporate Insolvency & Governance Act 2020
Future proofing
* Reflecting objectives of Construction Playbook (Gov requirements) – Firmer
incorporation of prev. optional Collab working, Sustainable Develop etc.
What are the changes to the JCT Suite for 2024? (Specifics)
Modernising etc.
Provision for issuing electronic notices & contract signing
EoT
New Relevant Events to cover epidemics & update on Statutory powers considered/defined
EoT review timeframe REDUCED from 12 weeks to 8 weeks
Loss & Expense
Optional additional grounds for Contractors to claim L&E in Contract Particulars i.e.
epidemics & statutory powers. Antiquities to inc. unexploded bombs, contamination and
asbestos.
LD’s and Termination
As a result of the case of Triple Point Technology Inc vs PTT Public Company Ltd LD damages clause will apply up to termination of contract, but not after. General Damages for delay can be claimed thereafter.
A due date for final payment after termination added to remove prior uncertainty.
Disputes
New requirement to notify of potential disputes and for senior execs to meet early to seek negotiated settlement (Previously optional Supplemental Provision 10 - aligning with NEC4 approach). Doesn’t stop right to adjudication. Nominating bodies list amended to allow more choice.
Fluctuations
Increase prominence and accessibility of fluctuation provisions by moving to online document and guidance – fluctuations hub for clarity on JCT contract options.
Legislative Changes
Building Safety Act+,
Insolvency under ‘Corporate Insolvency Governance Act 2020’.
Future Proofing
Reflect objectives of Construction Playbook & prev. optional supplements into main document.
New Form
Target Cost Contract
What was the significance of the Triple Point Technology Inc vs PTT Public Company Ltd 2021?
Supreme Court Ruling:
In short, the right to claim for LDs are not extinguished when a contract is terminated.
They are claimable until termination, after which, general damages can be claimed.
What is the ‘Construction Playbook’?
Current version 1.1 published Sept 2022 (Original 2020):
-Best practice to reform industry and transform how public projects and programmes
are assessed
-Covers inception through transition and operation
-Provides advice on MMC and Net Zero Carbon and sustainability
-Mandatory for Government (and arms length bodies) on public sector projects
-Outcome-based Specifications driving continuous improvement and innovation
-Longer term contracting across portfolios
-Drive social value
-Improved financial assessment of suppliers: Plans for when it goes wrong. Resolution
planning requirements
-Faster End to end project and programme delivery – Investing up front for success
What are therefore the ‘expectations’ arising from the ‘Construction Playbook 2022)?
Expectations:
* Early engagement
* Fair margins
* Senior Responsible Owner (SRO)
* Risks managed by the best party
* Gold Standard framework (see Gold Standard Report by Prof. David Mosey, 2021)
* Supplier Code of Conduct for prompt payment with digitalised payment and contracting
* Manufacturing led solutions
* ISO 9001 Quality Management
* Invest in skills, people and innovation
* Meeting UK BIM Framework standards
What is the ‘JCT Fluctuations Information Hub’?
-Contains articles on Fluctuations Principle
-Details how Principles operate
-Details options available within the JCT
Contracts for Fluctuations
-New training module video on JCT Fluctuations
What are the JCT Fluctuations Options?
Option A
*Included in JCT 2016
*Covers: Taxes, Levies, Duties etc.
*Default provision
* Has to be deleted or applies
* Allows for recovery of increases after Base Date
Option B
* Inc. in 2011 but removed in 2016
* Can be incorporated in 2024
* Allows adjustments for labour, materials, goods, fuel &
electricity
* Allows net amendments
Option C
* Used when parties agree to use ‘formula rules’ (indexation)
* Formula rules are complex (60 pages)
* Contractor states for each cost allocation of value & adjustment amount
* Amounts can be agreed
