JCT Design & Build Contract 2016
JCT have now published the new JCT Design & Build suite of contracts for general sale. A number of amendments made to the Design & Build Contract mirror the changes to the other JCT contracts already published earlier in the year. However, as one would expect for a Contract intended for use on more complex projects, the changes have also extended to cover other areas. The changes include:
1. Incorporation of the provisions of the JCT Public Sector Supplement 2011 that relate to Fair Payment, Transparency and Building Information Modelling.
2. Incorporation of the changes to reflect the Construction (Design & Management) Regulations 2015 and the Public Contracts Regulations 2015.
3. Amendments to the works and existing structures insurance provisions to make them more flexible.
4. Revision and simplification of the payment provisions, including:
a.) establishing Interim Valuation Dates that apply to main contract, sub-contract and sub-subcontract levels;
b.) increasing flexibility in relation to fluctuations provisions; and
c.) consolidating the notice requirements of the Housing Grants, Construction & Regeneration Act 1996.
5. Specific clauses allowing for the grant of Performance Bonds and Parent Company guarantees.
6. Extension of the optional provisions for Collateral Warranties from sub-contractors to include Third Party Rights.
What is quite apparent is that aside from incorporating statutory updates (such as in relation to the CDM Regulations) there has been a clear attempt to simplify certain aspects of the JCT Contract. The increased flexibility and simplification may have been made as an attempt to compete against the growing popularity of the NEC3 Contracts, particularly within the public sector.
Given that the Design & Build Contract is perhaps the most common JCT Contract that we come across and is certainly favoured by a number of Employers, Contractors and Consultants alike it will be interesting to see whether the new edition is still looked on favourably.
We appreciate that many within the Construction industry will not have the time to look through what (despite some simplification) remains a long and relatively complex document. We accordingly propose to offer to interested parties a workshop to come to you (or if you wish at our offices) and provide some more in depth commentary on the new JCT Design & Build Contract 2016.
If you would be interested in the above noted workshop then please do not hesitate to contact David Myers via email at firstname.lastname@example.org or telephone 01482 337287.
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.