Summary of the JCT 2009 Revisions

According to JCT, the 2009 Revisions provided the opportunity to modify certain aspects of the payment provisions, whilst awaiting the outcome of the proposed new payment legislation resulting from the review of the Housing Grants, Construction and Regeneration Act.

The changes embrace OGC's Achieving Excellence criteria, so that JCT can become the contracts of choice across government departments.

Following the format first introduced for Revision 1, JCT have continued the policy of listing the changes in the Contract Guide rather than the contract itself. The guide also now includes, at Appendix C a 'user checklist' with tick boxes of 'key information' that will assist completion of the Articles of Agreement. It is not clear whether JCT intends that a separate checklist – and therefore guide – is needed for each new project.

There will be some amendments which relate to specific contracts, and not all revisions apply to all documents, but the broad changes are as follows:

Conditions:

• Changes to the notice provisions including period required before terminating
• Acknowledgement of the use of a framework agreement
• Requirements for collaborative working
• Provisions for establishing and monitoring of contractor's performance against indicators identified in the contract documents.

Payment:

• A new provision for interim payments after practical completion at intervals of two months
• Clarification of the dates from which interest is calculated where payment is made late
• The option of a retention bond in lieu of retention, together with sample text
• The option of an Acceleration Quotation to be submitted by the Contractor.

Dispute resolution:

• Parties must "give serious consideration" to any request to refer disputes to mediation
• Meetings between senior executives may be arranged to negotiate in respect of any disputes
• Encouragement to agree a communications protocol at the outset.

Sustainability:

• The Contractor is encouraged to propose changes to designs or specifications or programmes which may benefit the Employer in terms of cost of works or life cycle cost
• The Contractor is encouraged to suggest economically viable amendments to the works which may result in an improvement in environmental performance
• Parties shall work with each other in a collaborative and cooperative manner.

Withdrawal of previous editions

We understand that as the new contracts are introduced, retailers have been asked to return stocks of the previous editions to the publisher Sweet & Maxwell. There will be no overlap time where both old and new contracts are available. For this reason, we held back sending NBS Update 2009-2 until we had included the revised material and associated guidance. As further revisions are received, we will continue to provide updates, information on which will be available at NBS timetable for JCT 2009 revisions. When such updates are available, you will see a reminder in the Guidance notes of your software.

For further details please contact NBS Customer Services on 0845 456 9594.

Purchase the latest JCT Contracts from RIBA Bookshops

More details on the availability of the contracts JCT 05 Standard forms of Building Contract 2009 revisions are available from RIBA Bookshops:
http://www.ribabookshops.com/site/jct-contracts.asp

Subscribe to JCT Contracts digital service
http://www.ribabookshops.com/site/jct_demo.asp

Buy other construction contracts including ACA, ACE, ICE , FIDIC , GC Works and NEC
http://www.ribabookshops.com/site/contractslist.asp?cat=311 

Related NBS information:

Articles:

• JCT Constructing Excellence Contract
• JCT Major Project Construction Contract

Selected links:

• Contracts

July 2009

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