October 7, 2024

Important updates to JCT contracts

One of the tools that helps construction businesses handle legal challenges and help make things run smoothly is the Joint Contracts Tribunal (JCT) suite of contracts.

JCT contracts are among the most commonly used in the construction industry, offering a reliable way to manage projects, define responsibilities, and keep things fair between employers and contractors.

The latest JCT 2024 edition brings some important updates that modernise and simplify contracts, adapt to new laws, and ensure they are ready for whatever comes next.

What are JCT contracts and why are they important?

JCT contracts are standardised documents that lay out the roles, responsibilities, and obligations of all parties involved in a construction project.

They describe how risks are shared, how payments are made, and how any disputes are handled.

These contracts are important for construction businesses because they spell out clear terms and conditions, so everyone knows what is expected of them.

They also help ensure that risks are properly allocated between different parties, which helps prevent disputes.

Using a well-known standard like JCT means that construction businesses can be confident that their contracts meet relevant laws and industry standards.

Key updates in JCT 2024

The JCT 2024 edition introduces several key changes:

Gender-neutral language

To ensure inclusivity, JCT 2024 contracts now use gender-neutral language, replacing terms like ‘he’ with ‘they’.

This brings the contracts in line with the approach taken by the Government and makes sure the language remains accessible and familiar for regular users.

Electronic communications

Specific rules have been added for using email to give electronic notices, which helps make communication more efficient.

This includes clear guidance on signing contracts electronically, something that has become more important in recent times.

Simplified extensions of time

The procedure for interim extensions of time has been improved, with the timeline shortened from 12 weeks to eight weeks.

This change aims to speed up project timelines, allowing faster handling of delays.

Target cost contract

The new Target Cost Contract (TCC 2024) has been introduced.

This type of contract lets contractors share in the savings and is meant to motivate them by using target cost and difference-sharing arrangements.

This provides more flexibility in managing costs and encourages collaborative working, which can lead to more efficient project completion.

Legislative changes

The 2024 edition includes updates to reflect the latest Building Safety Regulations, especially Part 2A of the Building Regulations 2010.

This means there are now specific rules for appointing principal designers and contractors, focusing on improving safety in construction projects, particularly for higher-risk buildings.

The contracts have also been updated to include new insolvency provisions under the Corporate Insolvency and Governance Act 2020, ensuring that businesses have clear guidance on what happens in cases of insolvency.

Get the right support for your construction contracts

The JCT 2024 edition has brought in a number of updates that will affect how construction businesses operate and manage projects.

Getting the right legal advice is key to handling these changes effectively.

Contact us today to learn more about how we can help you with every aspect of JCT contracts.