The Joint Contracts Tribunal (JCT) has now released the full suite of 2016 edition contracts including the Standard and Design and Build Contracts and their associated Sub-Contracts, the Intermediate Building Contract family and the Minor Works contracts, together with the 2016 edition of its Collateral Warranty documents.
The key changes in the 2016 edition contracts are
- The payment terms have been designed to reflect fair payment principles and to simply and consolidate payment provisions:
- JCT has introduced the concept of a common valuation date, designed to speed up payments throughout the supply chain, which provides for a valuation date to be inserted into the main contract and repeated in the sub-contracts and sub-sub-contracts, with due dates down the contract chain following in stepped periods.
- Practical completion does not alter the frequency of interim payments; they continue at monthly intervals up to the due date of Final Payment.
- Notified sums plus interest are now automatically recoverable as debts.
- A procedure for the prompt notification and assessment of loss and expense claims has been introduced.
- Provisions for the grant of Performance Bonds and Parent Company Guarantees are now included and optional provisions have been extended to provide for the obtaining of Collateral Warranties from sub-contractors to include, as an alternative, the granting of Third Party Rights.
- There is also an extension of (Works) Insurance Option C to allow alternative solutions to the problems encountered by tenants and domestic homeowners in obtaining Existing Structures cover for Contractors, and consolidation within the main text of the generic provisions that apply to Insurance Options A, B and C (evidence of insurance, insurance claims and reinstatement work).
- Provisions relating to the CDM Regulations 2015 (first published as amendment sheets) are fully incorporated.