Key Changes from JCT 2016 to JCT 2024 – A Pocket Guide

Key Changes from JCT 2016 to JCT 2024 – A Pocket Guide

At Goodrich, we’re committed to Continued Professional Development, which is why we host regular seminars on the latest industry topics. These sessions help our team stay informed and deliver the highest level of advice to our clients. In our most recent seminar, we welcomed the experts from Archor—a specialist construction law firm—for a refresher on the key changes introduced in last year’s update to the JCT 2024.

The session revisited the significant updates aimed at modernising contract administration, encouraging collaboration, and ensuring alignment with evolving legal and regulatory standards.

Below is a summary of the key updates you should know about:

1.  Electronic Communication and Signatures

– Email is now recognised as an acceptable method of communication. Ensure email addresses are completed in the Contract Particulars

– Electronic signatures are permitted

2.  Supplementary Provisions

The following provisions are now mandatory:

– Collaborative Working: Parties must work cooperatively and in good faith (Article 3)

– Sustainability Obligations: The contractor is encouraged to propose cost-effective environmental improvements (clauses 2.1.5 and 2.2.2)

– Dispute Resolution: Prompt notification of disputes is required. Senior executives must meet for direct, good-faith negotiations (clause 9.1)

3.  Design Liability

– Expressly stated to be based on reasonable skill and care (clause 2.17.1.1)

– Fitness for purpose is explicitly excluded (clause 2.17.1.2) – review and consider amendments where necessary

4.  Contractor Liability

An overall cap on liability is now permitted, subject to appropriate amendments in the Contract Particulars. The cap on liability must be expressly agreed and stated in the Contract Particulars – It is not automatically applied (Guidance Note 34).

5.  Professional Indemnity Insurance

– The contract acknowledges that sub-limits and exclusions may apply (clause 6.15)

– Insurance cover must be on commercially reasonable terms and rates (clause 6.15.2)

6.  Relevant Events (Extension of Time) – New Events Added

– Epidemics (clause 2.26.7)

– Exercise of statutory powers (clause 2.26.8)

– Unforeseeable ground conditions (e.g. asbestos, contaminated materials, unexploded ordnance) (clause 2.26.4)

     Additional changes:

– Employers must request further particulars within 14 days of receipt of particulars (clause 2.24.4)

– If no request is made within 14 days, the Contractor is not required to supply additional details (clause 2.24.4)

– Delay assessments must be completed within 8 weeks (previously 12), unless otherwise agreed (clause 2.25.2)

7.  Relevant Matters (Additional Payment) – New Matters Added

– Epidemics (clause 4.21.6)

– Exercise of statutory powers (clause 2.26.8)

– Unforeseeable ground conditions (clause 4.21.3)

8.  Building Regulations and Safety

– Article 7 defines the roles and introduces the requirement to name the Building Regulations Principal Designer and Principal Contractor.

– Compliance with the Building Safety Act should be carefully reviewed and ensured

9.  Liquidated Damages

– May be deducted up to the point of termination only – not beyond (clause 2.29.5.1).

– Post-termination LDs must be pursued as general damages (if applicable) (clause 2.29.5.2)

10.  Termination Provisions

Significant changes have been made. The exact wording should be reviewed carefully.

It is strongly recommended that you seek legal advice from a qualified solicitor before finalising or amending any contract documents.

hello@goodrichllp.com

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