JCT Minor Works 2024: What’s new?
Following the eagerly anticipated release of the new JCT Design & Build Contract 2024, JCT has now released the JCT Minor Works 2024 suite. This comprises the following:
- Minor Works Building Contract;
- Minor Works Building Contract (with Contractor’s Design);
- Minor Works Sub-Contact (with Sub-Contractor's Design);
- Short Form of Sub-Contract; and
- Sub-Sub-Contract.
JCT Minor Works contracts are generally used when works are relatively straightforward and low value.
These contracts are not as detailed as the JCT Design and Build and Standard Building Contracts and contain more basic provisions, particularly in relation to insurance, variations and claiming extensions of time.
The updates to the JCT Minor Works 2024 suite largely resemble the updates to the JCT Design & Build Contract 2024 (with some subtle differences). We have summarised the key changes below:
1. Building Regulations
A new Article 6 has been included which requires the parties to confirm who the Principal Designer and Principal Contractor will be for the purposes of the amended Building Regulations.
Updates have also been made to ensure that the Contractor complies with the relevant sections of the amended Building Regulations.
2. Collaborative working, sustainable development and notification of disputes
New provisions relating to collaborative working, sustainability and notification of disputes (which were previously optional supplemental provisions) have now been introduced into the main body of the JCT terms.
A new Article 3 has been included which provides that the parties must work together and with the project team in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect.
In addition, the Contractor is encouraged to suggest economically viable amendments to the works to improve environmental performance and sustainability, and a reduction in environmental impact.
3. Contractor's design liability
The Minor Works Building Contract (with Contractor’s Design) includes some key changes to the Contractor's design liability in respect of the Contractor's Designed Portion.
A new clause has been added which makes it clear that, to the extent permitted by the Statutory Requirements, the Contractor will have no greater duty than to exercise reasonable skill and care in respect of its design and "under no circumstances" shall it be subject to a fit-for-purpose obligation.
4. Extensions of time
Unlike the JCT Design & Build Contract 2024, the approach in the JCT Minor Works 2024 suite relating to extensions of time and loss and/or expense has not changed.
The simple provision which states that the Contractor will be entitled to an extension of time where delay occurs outside its control remains.
As such, the updated Relevant Events and Relevant Matters included in the JCT Design & Build Contract 2024 relating to epidemics and statutory powers have not been included.
5. Ground conditions
Unlike the JCT Design & Build Contract 2024, the JCT Minor Works 2024 suite does not contain provisions relating to the Employer taking on the risk of asbestos, contaminated material and unexploded ordnance found in the ground.
This is not surprising, given the JCT Minor Works 2024 suite will be used for less complex works/projects.
6. Termination payment
The new JCT introduces a new defined term, “Termination Payment”. Together with some new clauses in the termination section, this provides a more structured approach to the final payment when a contract is terminated.
7. Modernisation
The JCT Minor Works 2024 suite adopts gender-neutral language and has moved away from references to “he” and “workmen”.
The suite also allows for the delivery of notices by email and accommodates electronic signatures.
What next?
JCT will continue to issue each contract family in the 2024 suite on a rolling basis throughout this year. A new Target Cost Contract (TCC) family will also be released, which will comprise a sub-contract and guide.
For more information on the above changes, or if you have any questions on construction law in general, please contact Ross using [email protected] or 0191 211 7999.