Update on JCT 2024 suite of contracts

Over the last six months, the Joint Contracts Tribunal released three of their 2024 JCT Contracts Suite: the Minor Works Contract 2024, the Intermediate Works Contract 2024; released on 15 May 2024 and 10 July 2024, and the Standard Building Contract – to be released on 21 August 2024 – respectively. This article will outline some key changes to look out for in respect of each contract.

Intermediate Building Contract

The Joint Contracts Tribunal’s Intermediate Building Contract (“IBC”) includes many similar amendments that are found in the 2024 Design and Build Contract. Updates aim to bring the IBC in line with legislative changes, such as the Building Safety Act 2022, and the latest industry practices.

• Modernisation
  As with the Design and Build 2024 contract, the majority of notices can be sent by email and attested to with electronic signatures, although some notices require both parties to agree to the use of electronic signatures and notices. There has also been a positive switch to entirely gender neutral language.

Building Safety Act 2022

In relation to the obligations in connection with The Building Safety Act 2022 parties should be aware of a new requirement to complete the new Article 7 confirming who will act as the Principle Contractor and separately the Principle Designer under the Building Regulations 2010. The same party can act in both roles, provided they are competent to provide the service.

Parties should also be aware of a new obligation on the contractor to comply with its BSA 2022 duty holder obligations. For example, duty holders must plan, manage, and monitor building work, including design, construction, and refurbishment, to ensure compliance with building regulations.

• Relevant Events and Relevant Matters
  A significant update found in the IBC is the expansion of ‘Relevant Events’ granting leave to an extension in time and recovery of loss. These include epidemics and changes in law. However, unlike the Design and Build Act 2024 there is no expansion of the provision to the discovery of antiquities, such as asbestos. However, this still allows parties a far easier time in protecting themselves from unforeseen events.
• Liquidated Damages
  In accordance with the Judgement in Triple Point Technology Inc v. PTT Public Co Ltd [2021] UKSC 29 the liquidated damages provision (Clause 2.29.5) has been updated to clarify the position of parties. If termination occurs before practical completion, liquidated damages will apply from the completion date up to the time of termination. After termination, damages incurred by the Employer due to any further delay can be claimed as general damages.
• Dispute resolution
  Parties are now by default subject to the requirement to ‘notify and negotiate disputes’, requiring meeting of senior individuals ‘as soon as practicable for direct, good faith negotiations to resolve the matter.’

Minor Works Building Contract

In a similar vein to the IBC, the Minor Works Building Contract 2024 (“MW 2024”) includes many of the amendments found in the 2024 Design and Build Contract, with a similar focus on updating the form in line with the Building Safety Act 2022 and industry practices.

• Modernisation
  As with the IBC, the Minor Works Contract tracks similar modernisation features and changes that were included in the Design and Build Contract. For example, facility has been provided for electronic communications and electronic execution, although this comes with the notable exception of key notices relating to default or termination – these require parties to ‘opt in’. Gender neutral language is also used throughout the MW 2024.
• Collaborative Working
  Another key change found in the MW 2024 is the elevation of mandatory Article 3 to a core term. Parties must “work with each other and with other project team members in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect”.
• Building Safety Act 2022
  The MW 2024 contains updates to bring the form in line with the Building Safety Act 2022. Duty holder requirements under part 2A of the Building Regulations 2010 – introduced by the Building Safety Act 2022. Importantly, the roles of principle designer and principle contractor, previously separate, are now combined.
• Divergence from Design and Build 2024
  Significantly, missing from MW contracts is the extensions of time approach taken in the Design and Build Contract which expanded the ‘Relevant Events’ allowing parties to request extensions of time and recover loss and expense. Therefore, parties to the MW 2024 will not enjoy the same protection from the discovery of antiquities, such as asbestos, contaminated material and unexploded ordnance. The terms providing for extension of time and loss and expense remain basic.

Standard Building Contract 2024

At the time of writing, the Standard Building Contract has not yet been released. We look forward to providing an update on this standard form in a subsequent article.

Summary

In summary, the new releases broadly track changes to the Design and Build 2024, with some notable exceptions to look out for when deciding on the correct contract to use and which amendments to include.