JCT will officially be withdrawing its 2016 suite of contracts on March 31st 2026. This means that following this date, the JCT 2016 edition contracts will no longer be available for purchase either in hardcopy or digital format and will effectively be discontinued for use for new projects in favour of the newly issued 2024 editions. CHIC utilises a selection of JCT Contracts as part of our own pool of access agreements and we will be replacing our suite to coincide with the JCT changes. The old versions have not gone for good however – existing projects operating under a 2016 edition will remain until contract completion (unless parties opt for a formal variation).
Last year CHIC worked closely with Trowers and Hamlins to produce new contract documents to align with the 2024 JCT editions, each with a tailored schedule of amendments to ensure a seamless transition on our part. We will only be using these new templates from April, ensuring members and suppliers are using the most update to date versions and can access the full benefits brought about by the JCT 2024 updates, which seek to streamline and modernise while considering risk and compliance. With the full range of the JCT 2024 editions now available following their rollout throughout 2024/25, it presents a good opportunity to reflect on the full breadth of changes that were implemented and the gaps that they plug.
The Changes
Regulations
As expected, the new suite incorporates legislative developments, notably through the Building Safety Act 2022 (BSA) and the new dutyholder regime under Part 2A of the Building Regulations, which details the roles and responsibilities of specified dutyholders. CHICs amendments expand and shore up the dutyholder requirements and take the coverage of legislative changes further, for example adding drafting for Awaabs law into the contract.Whilst it was surprising to see that the BSA updates didn’t include provisions for work to higher risk buildings, we will work with our members and their legal teams to navigate this as requirements arise.
Collaboration and Notification
Originally optional supplemental provisions, one of the core JCT articles now establishes that parties must work “in a co-operative and collaborative manner in good faith and in a spirit of trust and respect.” Similarly, each party must promptly notify each other of any matter that appears likely to give rise to a dispute, to promote early engagement and resolution. CHIC has always placed emphasis on partnerships and collaborating, reflected in our Frameworks and strengthened through our managed service. It is though, positive to see this driven further with the obligations now being embedded as default by JCT at contract level.
Environmental Considerations
Environmental performance now appears more prominently in the main contract conditions, with contractors being encouraged to suggest changes that could improve the environmental impact of any project. This is another well intentioned change reflecting the industry’s increasing focus on sustainability and meeting net zero targets.
Digitisation
JCT 2024 now formally allows for email notices and electronic signatures. This modernisation reflects industry movement on the acceptance of such communication for its efficiency and time saving benefits, something welcomed by CHIC. Our service includes assistance with the execution process, with our preferred method of signature being digital through the use of Docusign, which now caters for everything from witnessing to sealing.
Risk Management
The new JCT suite introduces additional relevant events for claiming loss and expense. Ground condition uncertainty was covered through the discovery of asbestos, contaminated materials and unexploded ordnance, whilst the impact of epidemics and changes in law are also now events, reflecting lessons learnt from recent history.
Reflections
The 10 year lifespan of the previous JCT edition may suggest a significant shift was needed. JCT has instead adopted more of a “not fixing what isn’t broken” approach. The intentions were good, with the promotion of better working practices through collaborative and sustainability clauses. But whilst these are now mandatory in essence, the lack of binding commitments in the wording means they’re arguably more aspirational. Work will need to be done to realise the practical reality of these conditions.
Furthermore, there’s a reliance on implied terms or deference to statutory obligations in relation to the implementation of legislation such as the BSA or PA23. On reflection, it may have been prudent to provide more detailed coverage of these matters in the drafting. This is why it was critical for CHIC to ensure we have an up to date offering that provides a suitable base for our members and supply chain wishing to access our services for assistance with contract drafting or to use our templates.
Final Comments
In order to provide a robust service to our members and supply chain, CHIC has undertaken a significant overhaul of our supporting contract documents. This exercise, backed by legal advice, will ensure that asset management spend delivered via our compliant routes to market is futureproofed and contractually sound.
If you have any questions regarding the updates or new JCT versions please get in touch at [email protected]
Written by Kieran Waud-shaw, Commercial Manager
