The Joint Contracts Tribunal (JCT) recently revealed changes to its design-and-build contracts, reflecting industry updates in its 2024 Edition of Contracts. One significant alteration is Clause 3.15, now encompassing unexpected discoveries such as asbestos, contaminated materials, and unexploded ordnance, enabling contractors to claim extensions of time and costs.
Moreover, a new provision acknowledges delays due to epidemics, learned from the construction sector’s experiences during the Covid pandemic. While these changes align the JCT 2024 with current legal standards and industry trends, they notably maintain existing clauses despite market practices pushing for modifications.
Rachel Heald, a partner at Hawkswell Kilvington, observes that while contractors will appreciate the added protection, there’s a perceived lack of detailed drafting concerning the Building Safety Act’s requirements, especially for higher-risk buildings. Chris Hallam from CMS concurs, noting that the DB 2024 represents more of an evolution rather than a revolutionary change, with little addressing the Building Safety Act’s duties.
JCT Updates Contract to Include Bombs, Asbestos, and Epidemics (Credits: HCR Law)
Despite these updates, the DB 2024 does not explicitly mention the 15-year limitation period for claims under the Defective Premises Act or for breaches of Building Regulations. Additionally, it lacks specifics regarding rules concerning work on Higher-Risk Buildings (HRBs) until receiving Building Safety Regular grants Gateway Two approval.
Asif Patel from Devonshires comments on the JCT’s light-touch approach to HRBs, indicating that bespoke amendments may be necessary to address Building Safety Act requirements adequately. However, DB 2024 introduces new provisions emphasizing cooperation and collaboration between clients and contractors, echoing NEC4 contracts’ principles.
The inclusion of mandatory cooperation requirements and the identification of principal designers and contractors under building regulations demonstrate a shift in emphasis toward collaborative working. These changes reflect significant shifts in the construction industry since the previous edition and aim to adapt to evolving legal and industry landscapes. Further details about JCT 2024 are anticipated, including the release of the Target Cost Contract, positioned as an alternative to the NEC Option C contract.
