With the JCT 2016 Edition due to arrive later this year, commencing with the Minor Works family of contracts in the Summer, a preview of the key changes and features of the 2016 edition was given by JCT chair, Richard Saxon CBE, in a speech at the Olswang Annual Construction Conference in February.
Here is an overview from Richard’s speech of the key features of the JCT 2016 Edition:
- The JCT 2016 Edition will incorporate and update provisions from the JCT Public Sector Supplement relating to Fair Payment, transparency and BIM into JCT contracts as a whole.
- Provisions relating to the CDM Regulations 2015 (first published as amendment sheets downloadable via the JCT website) will be fully incorporated.
- The JCT 2016 Edition will reflect the Public Contracts Regulations 2015, with provisions for use by public bodies, contractors and sub-contractors on public sector projects.
- There are a number of changes in respect of payment, designed to reflect Fair Payment principles and to simplify and consolidate the payment provisions:
- Establishing, for Fair Payment purposes, Interim Valuation Dates which will operate at main contract, sub-contract and sub-subcontract levels.
- Under the interim payment due date provisions, the monthly cycle of due dates applicable to payments up to practical completion now continues to apply after practical completion, up to the due date of Final Payment. This change is consistent with a new Loss and Expense ascertainment procedure and with Fair Payment principles.
- Revising and simplifying the payment provisions more generally, including introducing a procedure for prompt assessment of Loss and Expense claims, providing further flexibility in relation to Fluctuations Provisions, and consolidating the provisions containing the notice requirements of the Housing Grants, Construction and Regeneration Act 1996.
- JCT 2016 will include provisions for the grant of Performance Bonds and Parent Company Guarantees and we have extended the optional provisions for the obtaining of Collateral Warranties from sub-contractors to include, as an alternative, the granting of Third Party Rights by sub-contractors.
- There will also be an extension of (Works) Insurance Option C to allow alternative solutions to the problems encountered by tenants and domestic homeowners in obtaining Existing Structures cover for Contractors, and consolidation within the main text of the generic provisions that apply to Insurance Options A, B and C (evidence of insurance, insurance claims and reinstatement work).
- Further changes to improve functionality and user-friendliness across the suite, including minor updates and clarification of the intellectual property provisions, and incorporating (where appropriate) the provisions of the JCT Named Specialist Update 2012.
More details of these modifications, and any that may apply specifically to a group of contracts, will be outlined as the publication of each family of contracts within the suite approaches. Tracked Change Documents which show changes from the 2011 will also be released.
If you would like to receive updates relating to the JCT 2016 Edition and the changes made, you can sign up to the JCT Network, a new initiative set up to provide exclusive benefits and features to JCT users. Get early notification on updates to JCT contracts. You can get access to JCT news, blogs and forums, invites to exclusive JCT networking events and special discounts on JCT products. To sign-up visit the JCT Network page.