Kate Woodhall, associate in Lodders’ Construction and Engineering team, explains key changes to the JCT Design and Build Contract following the release of the updated 2024 version this year.
The JCT Design and Build Contract is designed for construction projects where the contractor carries out both the design and construction work.
Whilst the new release of the JCT Design and Build Contract was published in April 2024, many projects may already have been tendered using the 2016 edition. However, for new projects, now is the time to start moving over to the 2024 edition, if you have not already done so.
Within the 2024 version, there are a number of key differences to the 2016 equivalent for employers and contractors to be aware of. These include:
- Collaborative working: the previous optional supplemental provision for collaborative working has moved to Article 3 and, as such, should apply to all works.
- Design liability: clause 2.17 has been updated to expressly set out that the contractor shall not be subject to any duty, obligation, or liability, that its design shall be fit for its purpose.
- Fluctuations: the previous schedule 7 has been deleted but is available online on the JCT website. If a fluctuation option is to apply, this can still be selected in the Contract Particulars.
- Legislative changes: including updates to cater for the obligations of the Principal Designer and Principal Contractor under Part 2A of the Building Regulations and additional insolvency grounds following the Corporate Insolvency and Governance Act 2020. It is important to note that the changes do not extend to works to higher-risk buildings, which would still need to be dealt with in a schedule of amendments.
- Liquidated damages: a new clause 2.29.5 has been added following the Supreme Court’s decision in Triple Point Technology Inc v PTT Public Company Ltd. Where the works are not complete at the date of termination, the employer is entitled to LADs up to the date of termination and general damages after the date of termination.
- New relevant events: relating to the discovery of asbestos, contaminated material and unexploded ordnance; epidemics; changes in law, exercise of statutory power and publication of guidance. The period for the employer to notify the contractor of its decision when assessing a claim has been reduced to 8 weeks.
- New relevant matters: for the same circumstances as the new Relevant Events, however, epidemics and exercise of statutory power etc are optional and would need to be selected in the Contract Particulars.
- Modernising and streamlining: adopting gender-neutral language and updating for serving notices by email (the option needs to be chosen in the Contract Particulars).
- Sustainability and the environment: the previous optional supplemental provision has been split out and moved to clauses 2.1.5 and 2.2.2 and apply to all works.
Help with moving over to JCT Design and Build 2024
The changes to the JCT Design and Build Contract are a welcome update and should reduce the number of bespoke changes to the standard form.
If you have any questions about the new JCT suite, or need advice on modernising your existing contract documents, please get in touch with Lodders’ expert Construction and Engineering team here.
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