by Iain McIlwee | 1 Aug, 2023 | Main News Feed
It has been confirmed that the next edition of JCT (JCT 2024) is anticipated to be issued in the early part of next year. The final decision on the release date will be determined by when the secondary legislation necessary to implement many of the provisions of the Building Safety Act 2022 has been published (expected to be finalised by October 2023).
What are the key changes:
Modernising and streamlining: changes will include the adoption of gender-neutral language, provision for execution by electronic signature and the facility for notices to be sent electronically.
Fluctuation provisions: Price uncertainty is set to continue and the JCT has launched a new fluctuations hub to offer guidance on its Fluctuation Options and also plans to move the fluctuation provisions to an online document to increase prominence and accessibility. Currently, fluctuation Options B & C are available online while Option A features in the JCT contracts.
Extensions of Time: There will be new relevant events to cover epidemics, updates to how ‘statutory powers’ are dealt with and ‘Statutory Undertakers’ will be redefined to ‘Statutory Providers’. In addition, the period of time for the Employer to assess an interim extension of time will be reduced from 12 weeks to 8 weeks from receipt of the Contractor’s particulars. The relevant event dealing with antiquities will be extended to deal with UXB’s, contamination and asbestos.
Loss and expense: The Contract Particulars will provide for parties to include optional additional grounds for the contractor to claim loss and expense. These include epidemics and the exercise of statutory powers by the UK Government which directly affects the works. The relevant matter dealing with antiquities will be extended to deal with UXB’s, contamination and asbestos.
Liquidated damages: The JCT is also making amendments to reflect the Supreme Court’s decision in Triple Point Technology Inc (Respondent) v PTT Public Company Ltd (Appellant) (2021). The decision restores the orthodox position that liquidated damages clauses apply up to termination of a contract, but not thereafter. Clear wording must be used if parties want to agree a different approach. The planned updates to the JCT will provide that where works are not complete at termination, LDs can be levied up to termination and only general damages for delay can be claimed thereafter.
Resolving disputes, arbitration and adjudication: Parties will be able to choose a nominating body or appointer of their choice, as opposed to the original short list. However, it is anticipated that the particulars will still include a list of bodies, as the AICA is being removed (due to it now being defunct). The notification and negotiation of disputes, set out at Supplemental Provision 10, will no longer be an optional provision. Subject to the parties right to refer a dispute to adjudication, this provision deals with the avoidance or early resolution of disputes or differences by requiring each party to promptly notify the other of a matter that is likely to give rise to a dispute or difference. It also requires senior executives to meet “as soon as practicable, for direct, good faith negotiations to resolve the matter”.
Allocation of risk: There will be a new provision added to the contract to deal with unexploded ordnance, contaminated materials and asbestos.
Legislative changes: There will be updates to reflect recent legislation including the Building Safety Act and its secondary legislation (once this has been finalised) and the two new insolvency grounds that were introduced under the Corporate Insolvency and Governance Act 2020 will be added.
Construction Act: There will be revisions to termination accounting provisions to reflect the requirements of the Construction Act, in particular a due date for the final payment after termination will be added.
Future proofing: The contract has been drafted with consideration to the Construction Playbook, sustainable development, collaborative working and environmental considerations.
In addition, a new set of contracts will be added to the suite. The Target Cost Contract, the Target Cost Sub-Contract and the Target Cost guide will be published alongside the updated suite.
While the final amendments are not released yet, the above is understood to be a good guide for the changes that are being implemented.
Commenting on the changes, FIS CEO Iain McIlwee stated:
“Changes to JCT are long overdue, there has been a lot of water under the bridge since 2016! But, whilst the changes are welcome, recent research by Reading University points to the fact that the very concept of a standard form of contract is to all extent and purposes almost dead.
It is vital that these changes are heralded with some real leadership making it clear that the contracts are designed to be used in an unamended format. Where amends are deemed necessary the users should be cautioned against “risk dumping” and the contracts should be deemed invalid unless changes are clearly marked up in the body of the contract instead of included in an unwieldy schedule of amends.
The new Building Safety Regulations emphasise that risk should be dealt with by the person most able to manage it – there is a huge opportunity for JCT to get behind this principle and champion the import of standard and unamended contracts.”
This summary of the changes is based on content in the latest edition of JCT News
by Oscar Venus | 27 Jul, 2023 | Main News Feed
The Building Safety Regulator (BSR) is set to oversee the building control approval process for all higher-risk buildings from 1st October 2023. In order to ensure the ongoing safety of residents, the BSR will also manage the safety of these buildings while they are occupied. To provide a clear overview of the new building control regime and the BSR’s role as the Building Control Authority, a free one-hour lunchtime webinar will be hosted on Wednesday 9th August from 12pm-1pm. The webinar will be hosted by Colin Blatchford-Brown, Operational Policy lead for Gateways and Building Control, and Jenny Hagan, Senior Policy Advisor for Gateways and Building Control.
The engaging and informative webinar is open to all those interested in the new building control regime, including designers, architects, local planning and building control authorities, building control professionals, private and public sector contractors, clients, principal accountable persons/accountable persons, developers, and industry organisations. Attendees will gain a deeper understanding of the new building control regime, the importance of duty holder roles, and the gateways. The webinar will also provide the opportunity to ask questions to the experts and receive a post-event copy of the presentation and a recording of the webinar.
Register for the webinar here
by Clair Mooney | 24 Jul, 2023 | Main News Feed
Construction output is forecast to fall by 7.0% in 2023, primarily due to sharp falls in activity in the two largest construction sectors, private new housing and private housing repair, maintenance and improvement (rm&i). Output in the third largest construction sector, infrastructure, has also been revised down again due to government delays to roads and rail projects that will only add further cost to the projects when they return. Construction output is forecast to increase in 2024, by 0.7%, as wider economic growth boosts demand for both new build housing and rm&i activity.
FIS Members can download their copy of the CPA’s Summer Forecast here.
by Clair Mooney | 21 Jul, 2023 | Main News Feed
To help keep tabs on wage rate inflation, FIS launched in 2021 The FIS Wage Rate Index. The aim of this work is to support contract negotiations and to help track the impact of labour shortage on the cost breakdown of projects.
The survey is conducted every six months and FIS is asking all contractor members to take part. Data is published as a price index to allow for regional rate variations and all company specific data is managed in the strictest of confidence. The survey covers core trade roles, labourers, apprentices and construction and site managers.
THE DETAILED RESULTS OF THE SURVEY WILL BE MADE AVAILABLE EXCLUSIVELY TO CONTRBUTORS.
You can complete the survey via the link here. The survey will close on 21 August 2023. If you cannot complete, please share the link with the person in your business who can.
Your support is, as ever, appreciated.
by Clair Mooney | 20 Jul, 2023 | Main News Feed
The CPA has produced its response to the Independent Review of the Construction Products Testing Regime by Paul Morrell OBE and Anneliese Day KC. This latest briefing paper outlines how the CPA intends to respond to this report, as well as working with the government moving forward.
The DLUHC-commissioned report sets out recommendations for industry and government alike to improve and strengthen the testing regime for construction products. The uptake of its recommendations will be hugely consequential for safety and improved performance outcomes in construction.
The CPA is asking the government to help address some of the complex challenges facing the construction products industry currently. There are many interrelated issues that we hope can be addressed off the back of this report.
Asks include:
- That government should respond and support the recommendations listed in the Paul Morrell OBE and Anneliese Day KC Independent Review of the Construction Product Testing Regime, including uptake across industry of the Code for Construction Product Information
- That government should work with industry to action its recommendations and create a shared roadmap for practical progress, including what constitutes a ‘safety-critical’ product
- That government move to address and give clarity to the CA Mark issue, ahead of the June 2025 deadline.
by Clair Mooney | 19 Jul, 2023 | Building Safety Act, Main News Feed
Following recent changes to the Building Safety Act, FIS has updated its Product Process People Risk Register to support members with compliance.
The FIS PPP Risk Register gives people a structured framework to interrogate project risk based on a assessment of severity and probability of a risk occurring. The standard scoring system helps members to identify any unacceptable high risks and ensure management strategies are put in place to address. The tool also helps a management team to assign risk correctly and contains a range of links to additional tools and information that will help support specific risk management.
FIS CEO Iain McIlwee said: “A large part of our work centres on interrogating and helping members to manage day to day problems they may encounter, risks. This is a moving and evolving space. Our tool helps us to ensure that we are learning lessons and that members are alert to where problems may appear,
Risk is unescapable in any construction project, but at times we can feel so beset by risk that we become indifferent to it. It is vital that as an industry we get better at measuring, managing and mitigating. This simple tool is built on the premise that if you can’t measure it or didn’t think about it, you can’t manage it. It aims to help people to score risks. The underlying principle is that is that we can all learn from our own mistakes, but it is better learn together and avoid learning the hard way wherever possible.”
The FIS PPP Risk Register is available for members to download here
