JCT On Demand – New Contracts Now Available

/ JCT 2016 Edition, JCT Product Updates

The next batch of JCT Contracts to be made available via the JCT On Demand digital service is now live, including a range of some of our best-selling sub-contracts. JCT On Demand enables users to purchase a digital version of the JCT hardcopy contract via the JCT online store and fill in the contract in a safe, secure, online environment. It uses an intuitive Q&A process to enable users to complete their contracts comprehensively. The system also enables saving and printing drafts, printing out a…

The Fluctuating Fortunes of Brexit

/ General, JCT 2016 Edition

Blog Author: Peter Hibberd Just over two years ago I suggested that it was time to brush up on the use and operation of the fluctuation provisions in building contracts. A suggestion spurred by the advent of Brexit and its ambient uncertainty; an uncertainty plain to see. The risk of having entered into contracts that span the Brexit leaving date, without adequate protection from fluctuations, could leave parties in a precarious situation. One can still act to mitigate potential loss but the situation is far…

Do the Different Tiers of Building Contract Really Need to be Back to Back?

/ Contractual Issues, JCT 2016 Edition

Blog Author: Alexandra Reid The main JCT contracts specify that where this is ‘considered appropriate’ the contractor should engage its sub-contractors using the relevant version of the JCT sub-contract which sits beneath the main contract in question. JCT contracts are therefore drafted in such a way that ‘back to back’ obligations are ensured. So what can this mean for contractors? A short answer is that the JCT has satisfied itself that its own sub-contracts have been carefully drafted to ensure that their key contractual terms…

What’s Wrong with Retention?

/ Contractual Issues, JCT 2016 Edition

Blog Author: Peter Hibberd Retentions meet a real need and aren’t a problem in themselves – it’s how they are administered that needs fixing The clarion call for no retention has persisted for many years and has once more initiated action. This time BEIS undertook a consultation “on the practice of cash retention under construction contracts”, with its outcome imminent. Meanwhile a private members’ bill from Peter Aldous received its first reading but its second is delayed until October. The cynical might consider this a…

Joint Names Clauses Create Own Problems

/ Contractual Issues, Insurance Provisions, JCT 2016 Edition

Blog Author: John D Wright  – JD Risk Associates Summary Standard contract forms such as JCT have a long history of words and phrases being adjusted to meet the evolving demands of business and to develop more compatibility with associated businesses such as insurance. The latest adjustments under JCT 2016 provide further clarity but the fundamental question of who bears the risks in any given situation continues to exercise the minds of all who advise on such contracts. JCT 2016: the final touches? The move…

JCT Standard Building Contract 2016: Simply Fair

/ Contractual Issues, JCT 2016 Edition

Understanding contractual provisions can be complicated but a solid legal framework that also reflects fair payment guidance is essential For payment to work effectively it is necessary for the parties to act properly. Facets of acting properly include good faith, appropriate skill and knowledge of the payment process. Where these attributes exist, few problems regarding payment should occur. Contract authoring bodies for their part can only specifically address the payment process but the simplicity or otherwise of that process has an impact on the ability…

MW 2016 Insurance: Not Sure How to Complete Clause 5.4C Particulars?

/ Insurance Provisions, JCT 2016 Edition

Possible solutions for you to consider: The following is an extract from ‘Insurance under the Minor Works Building Contract 2016’. This extract outlines possible solutions where clause 5.4C is to operate i.e. those circumstances where clauses 5.4A and 5.4B are not appropriate. The full text is available at https://corporate.jctltd.co.uk/insurance-under-the-minor-works-buildingcontract-2016/. Clause 5.4C is to apply where clause 5.4A does not apply and clause 5.4B cannot apply because the relevant insurance is not available. As a consequence one has to make other arrangements and which clause 5.4C…

Insurance under the Minor Works Building Contract 2016

/ Insurance Provisions, JCT 2016 Edition

Introduction Carrying out building works regardless of their size and scope involves risks not only for the builder but the employer. The principal purpose of the building contract is to allocate those risks. That is done by way of the contract terms including the provision of indemnities and requirement for insurances. This note deals with the Minor Works Building Contract 2016 (MW) and Minor Works Building Contract 2016 with contractor’s design 2016 (MWD). It looks first at the insurance provisions dealing with the Works including…

JCT Design and Build Contract 2016: Simply Fair

/ Contractual Issues, JCT 2016 Edition

At the time of the government’s consultation on Building a Responsible Payment Culture I commented on the balance between legislative intervention and the freedom to contract. At that time it was debatable whether further legislative intervention in contractual payment was desirable. Other commentators also expressed doubts. However the driver then, which still prevails, was that the payment process still needs improving. Therefore, it is not wholly surprising that we have seen further legislative change and government guidance as regards fair payment, albeit not as extensive…

JCT celebrates success of latest Edition at Parliamentary Reception

/ JCT 2016 Edition, Latest News, Press Releases

JCT’s Construction Industry Parliamentary Reception, celebrating the success of the release of the JCT 2016 Edition of Contracts was held yesterday (5th May 2017) at the House of Commons, London. Since its launch, the JCT 2016 Edition has been welcomed positively by the industry, with an unprecedented level of sales through the JCT online store, www.jctltd.co.uk. Victoria Peckett, chair of JCT’s Drafting Sub-Committee and head of construction at CMS-Cameron McKenna LLP, addressed guests, identifying three main areas that were important in the creation of the…