What do architects need to know about the new Guides to JCT contracts?

With the recent publication of Sarah Lupton and Manos Stellakis’s Guide to the JCT Standard Building Contract 2024 – published by RIBA Publishing – architects will have access to definitive guidance on the four most popular contracts in JCT’s updated suite. The set is completed with Sarah and Manos’s guides to Design and Build Contract, Intermediate Building Contract, and Minor Works Building Contracts.

JCT’s 2024 contract editions are notable for being the first updates since the passing of the Building Safety Act. Sarah and Manos agree that the JCT has handled the landmark legislation well by embedding the input of essential information, such as Part 2A of the Building Regulations 2010 and Construction, Design Management (CDM) Principal Designer and Principal Contractor, and referencing new rules and obligations while avoiding setting out detailed regulations and Gateway procedures (which also exist elsewhere).

What are some of the key changes to the contracts since the 2016 JCT editions?

JCT Standard Building Contract 2024

The Standard Building contract is considered the benchmark against which other standard forms and bespoke contracts are compared. A thorough knowledge of this contract will help practitioners to understand and appraise any contract they encounter.

Changes from 2016 edition include:

• Provisions relating to collaborative working, sustainable development and environmental considerations, and notification and negotiation of disputes are now included in the main body of the contract and reflect some of the policies set out in the government’s Construction Playbook.
• Building safety legislation. JCT considers that the Building Safety Act (BSA) and related legislation fall within the definition of ‘Statutory Requirements’ and that the contractor is therefore required to comply with these under the terms of the contract. Accordingly, the JCT has not set out all the requirements within the contract, but for clarity has referred to the key dutyholder roles. Contract particulars now require separate entries for the Principal Designer and Principal Contractor for both Part 2A of the Building Regulations 2010 and for the CDM Regulations 2015.
• Clause 2.9.1.1 is amended so that the contract administrator provides the contractor with the building information that is required under regulation 11A(4) of the Building Regulations, if such information has not been previously provided; Clause 3.23 is amended so that each of the parties to the contract is required to comply with the CDM Regulations and Part 2A of the Building Regulations.
• The Standard Building Contract 2024 does not refer to the BSA’s ‘gateway regime’ or its ‘golden thread information’ requirements, as these would not apply to all projects, but it does refer to the key dutyholder roles of Principal Designer and Principal Contractor under the CDM Regulations 2015 and Part 2A of the Building Regulations 2010. The JCT publication The Building Safety Act 2022 gives additional guidance on how these issues could be addressed where the project is a higher-risk building (HRB).
• Gender neutral language is used throughout for the first time and provision is made the contract to be executed by electronic signature and for notices to be sent electronically.
• Time limits for decisions by the employer regarding extension of time claims are tightened up.
• There are new ‘Relevant Events’ for epidemics and publication of new legislation and guidance. These grounds are also included as optional ‘Relevant Matters’, which allows for a degree of risk apportionment between the parties.

JCT Intermediate Building Contract 2024

The Intermediate Building Contract is designed for construction projects involving all the recognised trades and skills of the industry where fairly detailed contract provisions are needed. The 2024 edition is published in two versions – IC24 and ICD24 – to cater for the increasing importance of contractor’s design.

Changes from 2016 edition include:

• Provisions relating to collaborative working, sustainable development and environmental considerations, and notification and negotiation of disputes are now included in the main body of the contract and reflect some of the policies set out in the government’s Construction Playbook.
• Intermediate Building Contract 2024 refers to the key dutyholder roles of Principal Designer and Principal Contractor under the CDM Regulations 2015 and Part 2A of the Building Regulations 2010. It adds a separate payment procedure for amounts payable on or after termination, revises the definition of insolvency to reflect the Corporate Insolvency and Governance Act 2020, and adjusts payment procedures to comply with the Housing Grants, Construction and Regeneration Act 1996 (IC16 did not cover any of these issues).

JCT Minor Works Building Contract 2024

The Minor Works contract is designed for smaller, basic construction projects where the work is of a simple nature. The contract comes in two versions: one that includes provision for the contractor to carry out some of the design, and one that does not.

Changes from 2016 edition include:

• Provisions relating to collaborative working, sustainable development and environmental considerations, and notification and negotiation of disputes are now included in the main body of the contract and reflect some of the policies set out in the government’s Construction Playbook.
• A new article is included for indicating who will act as Principal Designer and Principal Contractor and the conditions refer to the key dutyholder roles.
• The Minor Works Building contract 2024 now includes a separate payment procedure for amounts that are payable on or after termination and the payment procedures have been adjusted to comply with the HGCRA 1996. The definition of insolvency has been revised to reflect the Corporate Insolvency and Governance Act 2020.
• Gender neutral language is used throughout, for the first time.

JCT Design and Build Building Contract 2024

The Design and Build Contract is designed for construction projects where the employer engages a single contractor to prepare and/or complete the design and construct the works. The contract adopts the familiar logical layout and clear style, while reflecting current working practices, new legislation and new case law.

Changes from 2016 edition include:

• Provisions relating to collaborative working, sustainable development and environmental considerations, and notification and negotiation of disputes are now included in the main body of the contract and reflect some of the policies set out in the government’s Construction Playbook.
• The Design and Building Contract 2024 does not refer to the ‘gateway regime’ or ‘golden thread information’ requirements of the BSA as these would not apply to all projects, but it does refer to the key dutyholder roles. The Contract now includes a separate payment procedure for amounts that are payable on or after termination; the definition of insolvency has been revised to reflect the Corporate Insolvency and Governance Act 2020 and the payment procedures are adjusted to comply with the HGCRA 1996.
• Time limits for decisions by the employer regarding extension of time claims have been tightened up in DB24.
• ‘Relevant Matters’ now incorporate options for epidemics and for publication of new legislation or guidance, allowing for a degree of risk apportionment between the parties.
• Gender neutral language is used throughout, and for the first time the Contract allows the contract to be executed by electronic signature and for notices to be sent electronically.

What's in the Guides?

Each of the four Guides include:

• Explanations of provisions, procedures, and conditions by subject;
• Outlines of duties and powers and addressing key contractual issues that may arise during a project supported by recent legislation and case law;
• Discussions of the changes introduced in the 2024 editions of the contracts, such as sustainability, collaboration, response to legislation and case law, early notification of disputes;
• Case law updates on key topics, such as design liability, concurrent delay, practical completion, and liquidated damages;
• Comparison between JCT, NEC4, and RIBA Building Contracts, and;
• New figures and tables.

All four Guides are presented as practical and comprehensive resources for understanding and administering the new contracts. Both authors are strong advocates for the project architect also acting as contract administrator, or at least continuing to advise the client on contractual issues during the course of the project. Thanks to discussions via workshops and feedback, the authors have seen some architects playing a diminishing role and backing away from administration, something they hope the Guides will help to remedy.

“The architect is well placed to be the administrator because they are there at the inception,” Manos comments. “They understand the principles behind the project and the principles by which somebody has chosen to build it. They also understand the details as well as the strategic elements.”

Sarah continues: “The architect will also be advising the client on which contract they might want to use, even if they are not the administrator. The principle behind these Guides was that they should be very clear and accessible so that architects do not have to step away.”

• Purchase the Guide to JCT Design and Build Contract 2024
• Purchase the Guide to JCT Minor Works Building Contract 2024
• Purchase the Guide to JCT Intermediate Building Contract 2024
• Purchase the Guide to JCT Standard Buildings Contract 2024

Thanks to Sarah Lupton and Manos Stellakis.

Text by Neal Morris. This is a professional feature edited by the RIBA Practice team. Send us your feedback and ideas.

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