In preparation for the withdrawal of JCT 2011 (JCT has announced that from April 2018, the JCT 2011 contracts will no longer be in use in any format), the use of the JCT 2016 suite of contracts is on the rise. Kara Price, a solicitor within Womble Bond Dickinson’s specialist construction team, has set out a brief summary of the changes which JCT users should be aware of when using the JCT 2016 contracts.
Payment provisions look quite different to those in the JCT 2011 suite and aim to simplify the payments terms as far as is possible. The terms have been updated to be more consistent with the Construction Supply Chain Payment Charter to speed up payments through the chain, and interim payment dates will now continue at monthly intervals until the final certificate (previously this changed to two-monthly intervals upon practical completion). Notified sums are now also automatically recoverable as a debt.
Insurance arrangements now provide more flexibility with regards to the insuring of existing buildings and insurance Option C has been amended to allow parties to choose (by stating in the contract particulars) to replace this option with their own ‘Replacement Schedule’. This change addresses the previous concern that these provisions were not appropriate for works carried out in a building with multiple occupants.
CDM Regulations 2015 are now fully incorporated.
BIM references have been added, including references to a BIM protocol.
Performance bonds and parent company guarantees have been added into each contract (except for the Minor Works form) as optional requirements. Note that JCT has not provided its own forms to work from and leaves this for the parties to agree on.
Public Contracts Regulations 2015 are now incorporated which are required by public sector bodies. FIS members with any queries on this can call Womble Bond Dickinson on the Legal Helpline.
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