The latest edition JCT 2016 Building Contracts have now all been published.
A preview of the key changes and features of the 2016 edition was given by JCT chair, Richard Saxon CBE, in a speech at the Olswang Annual Construction Conference in February 2016:
The JCT 2016 Edition will incorporate and update provisions from the JCT Public Sector Supplement relating to Fair Payment, transparency and BIM into JCT contracts as a whole.
Provisions relating to the CDM Regulations 2015 (first published as amendment sheets downloadable via the JCT website) will be fully incorporated.
The JCT 2016 Edition will reflect the Public Contracts Regulations 2015, with provisions for use by public bodies, contractors and sub-contractors on public sector projects.
Under the interim payment due date provisions, the monthly cycle of due dates applicable to payments up to practical completion now continues to apply after practical completion, up to the due date of Final Payment. This change is consistent with a new Loss and Expense ascertainment procedure and with Fair Payment principles.
Revising and simplifying the payment provisions more generally, including introducing a procedure for prompt assessment of Loss and Expense claims, providing further flexibility in relation to Fluctuations Provisions, and consolidating the provisions containing the notice requirements of the Housing Grants, Construction and Regeneration Act 1996.
JCT 2016 will include provisions for the grant of Performance Bonds and Parent Company Guarantees and we have extended the optional provisions for the obtaining of Collateral Warranties from sub-contractors to include, as an alternative, the granting of Third Party Rights by sub-contractors.
There will also be 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).