JCT 2024

Introduction to the JCT

The Joint Contracts Tribunal (JCT), comprised of member bodies representing key participants in the construction industry, are responsible for the production of standard form construction contracts and other documentation for use in the construction industry in the UK.

The construction contracts and other construction documentation are organised into the following categories –

Contract families, containing the main contracts and sub-contracts, and appropriate for use in projects of a variety of scope and size:-

• Standard Building Contract
• Intermediate Building Contract
• Minor Works Building Contract
• Major Project Construction Contract
• Design and Build Contract
• Management Building Contract
• Construction Management Contract
• JCT-CE Contract
• Measured Term Contract
• Prime Cost Building Contract
• Repair & Maintenance Contract
• Home Owner Contracts

Agreements, to be used alongside main contracts and sub-contracts on the appointment of specialists, consultants or adjudicators :-

• Adjudication Agreement
• Adjudication Agreement Named Adjudicator
• Consultancy Agreement (Public Sector)
• Framework Agreement
• Pre-Construction Services Agreement (General Contractor)
• Pre-Constrution Services Agreement (Specialist)

Collateral Warranties, supporting documents to a primary contract, establishing a contractual link with a third party to the primary contract, in respect of the following roles:-

• Contractors
• Sub-Contractors
• Management Contractors
• Works Contractors
• Construction Managers
• Trade Contractors

The introduction of JCT Design and Build suite 2024 Edition on 17 April 2024JCT marked the launch of JCT’s new suite of 2024 contracts.

The 2024 editions of the Minor Works and Intermediate Building Contract suites followed in May and July, and the 2024 editions of the Contractor and Sub-Contractor Collateral Warranties are also available.

The Standard Building Contract suite was released on 21 August 2024, and the 2024 edition of the Consultancy Agreement and the Pre-Construction Services Agreements released on 4 September 2024, intended to be used alongside the main contract families, mirror the key changes brought in by the JCT 2024 Edition.

JCT 2024: Key changes

The changes introduced by JCT 2024 are organised into four key “streams”, or themes.

Modernising and streamlining

The process for dealing with extension of time claims has been streamlined and shortened. In addition, drafting now refers specifically to epidemics and changes in law from the base date, including the publication of government guidance, reflecting a more flexible approach.

Both are included in the definition of Relevant Events (in respect of which extensions of time may be granted) and are optional Relevant Matters (which allow the contractor to make a claim for loss and expense).

Provisions setting out the steps to be taken on the discovery of unforeseen conditions, namely the discovery of antiquities – fossils, antiquities and other objects of interest or value – have been to include asbestos, contaminated materials and unexploded ordnance.  

The above “stream” also includes the following

• the adoption of gender neutral language
• increased flexibility around the use of electronic notices, such as provision for the use of email as a means of providing electronic notices and guidance around electronic execution
• in respect of dispute resolution mechanisms – Adjudication and Arbitration in particular – allowing parties to specify a nominating body or appointer of their own choosing
• reflecting common market practice, removing fluctuation provisions from the main body of the contract (although the text is available online, its inclusion is optional)

Legislative changes

As JCT contracts contain a general requirement to carry out work in compliance with statutory requirements, JCT 2024 has taken a “light touch” approach to the new building safety regime, the most significant legislative development since JCT 2016. Specific references are not made, for example, to “higher-risk buildings”, on the basis that the JCT suite of contracts is intended to be appropriate for use on a wide variety of projects.

Part 2A of the Building (Amendments etc) (England) Regulations 2023 is an exception; the new duty holder roles of Principal Designer and Principal Contractor under the Building Regulations must be  set out in writing and the competency requirements are dealt with alongside the existing Principal Designer and Principal Contractor roles under the CDM regulations.   

In addition, termination accounting and payment provisions have been brought in line with the notice requirements of the Housing, Grants, Construction and Regeneration Act 1996 (Construction Act), and JCT 2024 amends insolvency grounds, reflecting the Corporate Insolvency and Governance Act 2020.

Future proofing

Rather than amending existing drafting, “future proofing” focuses on existing provisions. 

The following formerly optional provisions have been moved into the main body of the contract. The amendments reflect the growing focus in the industry on addressing collaborative and non-collaborative behaviour and Environmental, Social and Governance (ESG), bringing JCT contracts in line with the Construction Playbook’s better, faster greener objectives.

Collaborative Working, which sets out that the parties shall work in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect, is now included as an article.

Sustainable Development and Environmental consideration, now a clause, encourages the contractor to suggest economically viable amendments which may improve the project’s environmental performance and requires the contractor to provide information regarding the environmental impact of materials and goods.

Also included as a clause, Notification and negotiation of disputes encourages avoidance or early resolution of disputes or differences; parties must nominate a senior executive to enter into good faith negotiations on their behalf. 

New for JCT 2024

Finally, JCT have introduced a new contract family, the Target Cost Contract 2024 (TCC 2024), consisting of a main contract, sub-contract and guide.

Conclusion

We will continue to report as further suites are brought out in their 2024 edition, as they are rolled out during next few months.

In practice, standard form contracts are often used alongside bespoke Schedules of Amendments, which can include, for example, specific references to building safety legislation, tailoring standard form contracts to the specific requirements of each project.