Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

JCT 2016 Edition suite of contracts to be launched

05 April 2016 #Construction


JCT will shortly be publishing its new 2016 edition suite of contracts.

What are the changes?

The main proposed changes include:

  • incorporating and updating provisions from the JCT Public Sector Supplement relating to fair payment, transparency and building information modeling (BIM);
  • incorporating the provisions relating to the CDM Regulations 2015;
  • incorporating provisions reflecting the Public Contracts Regulations 2015 for use by public bodies / housing associations, contractors and sub-contractors on public sector projects;
  • changes to the payment provisions, to reflect the government’s Fair Payment Charter. These include:
    • interim valuation dates which will operate at main contract, sub-contract and sub-subcontract and/or supplier levels;
    • under the interim payment due date provisions, allowing the monthly payment cycle to continue after practical completion, up to the date of final payment;
    • a new procedure for prompt assessment of loss and expense claims;
    • more flexibility in relation to fluctuations; and
    • consolidation of the provisions containing the notice requirements of the Housing Grants, Construction and Regeneration Act 1996.
  • provisions for the grant of performance bonds and parent company guarantees and optional provisions for the obtaining third party rights and collateral warranties from sub-contractors;
  • extending Insurance Option C so that it allows for alternative solutions to problems encountered by tenants and homeowners in obtaining existing structures insurance cover for a contractor and consolidating the insurance provisions generally; and
  • amendments to improve the suite's ‘functionality and user-friendliness’, such as clarifying the intellectual property provisions and incorporating (where appropriate) the provisions of the JCT 2012 Named Specialist Update.

What to consider when the new contracts are published

The date for publication of this new suite of contracts has not yet been confirmed. 

Users of the JCT Contract are likely to welcome these changes, many of which will already appear in their own bespoke schedules of amendments to the JCT 2011 editions. Practically, clients should consider the following when the new contracts are published:

  • it is likely that there will be a transitional period where the new and previous editions of contract are used simultaneously by clients and users;
  • clients will need to update their standard form documents to reflect the new editions; and
  • users of the new documents will need to be trained in their use.

For more information on the new suite of JCT contracts or if you would like assistance with drafting a suite of JCT documents for an upcoming project please contact David Rintoul or John Wevill.

Clarkslegal, specialist Construction lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Construction matter please contact Clarkslegal's construction team by email at constructionsector@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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Victoria  Kempthorne

Victoria Kempthorne
Senior Solicitor

E: vkempthorne@clarkslegal.com
T: 0207 539 8062
M: 0791 783 1789

Contact

Construction team
+44 (0)118 958 5321