The 10 keys changes are as follows:-

1. Modernisation

The JCT 2024 contracts represent a substantial modernisation on the 2016 versions. Notably:

• Gender neutral language has been adopted throughout.

• The description of ‘Statutory Undertaker’ has been replaced by ‘Statutory Provider’, with this now being described with a rather more relevant description of who that definition captures.

• Notices and communications are now validly sent if served by email, including those relating to default notices or termination (subject to the satisfying the requirements per clause 1.7.4.2 and the Contract Particulars). However, notices under the new clause 8.13 (termination payments) cannot be sent by email, no doubt reflecting a desire for a greater degree of formality where termination is concerned.

• Specific guidance is now provided for electronic execution.

2. Collaboration

Article 3 now requires parties to work with each other (including any other team members) in a co-operative and collaborative manner, in good faith, in a spirit of trust and respect and in a manner that will address any non-collaborative behaviour.

There is also now a requirement for senior personnel to meet (again in good faith) where a dispute arises to seek a resolution. However, this is not a condition precedent to taking other steps (i.e. escalating a dispute).

3. Sustainability

The 2016 version contained a supplemental provision that encouraged the Contractor to “suggest economically viable amendments to the Works which… may result in an improvement in environmental performance and sustainability… and a reduction in environmental impact”.

To reflect the ever-increasing importance of sustainability in modern construction, that supplemental provision has now been merged into the operative provisions of the 2024 JCT, as a new clause 2.1.5.

4. Relevant Events

No doubt inspired by the Covid-19 epidemic, an additional Relevant Event dealing with epidemics has been included at clause 2.26.7, principally dealing with those situations where epidemic events limit the availability of labour or cause difficulties in securing goods, materials or services, in a way that might have an impact on the progress of the Works.

The Contractor’s right to a time extension for the discovery of antiquities and fossils has also been broadened, now also including asbestos, contaminated material and unexploded ordinance. This change is perhaps designed to reflect the substantial increase in brownfield site developments.

5. Extension of time

In addition to the above, under Design and Build Contract 2024, the period within which Employers must make a decision on any extension of time claim has been shortened to 8 weeks. Under the Design and Build Sub-Contract 2024, the corresponding time limit has been reduced from 16 weeks to 10 weeks. However, whether Parties decide to adopt this provision or amend them to allow more time is still to be seen given that the times allowed have been reduced significantly.

6. Insolvency

The definition of “Insolvency” at clause 8.1 has been expanded so as to incorporate the provisions of the Corporate Insolvency and Governance Act 2020. In particular, the 2024 edition of the JCT applies the Statute so as to make any clauses that would allow a supplier to terminate for client insolvency invalid.

7. Liquidated damages

Reflecting the decision in Triple Point Technology Inc v PTT Public Company Ltd [2021] UKSC 29, liquidated damages will no longer run beyond termination in those instances where termination takes place before practical completion. Instead, the Employer maintains a right to claim general damages from the point of termination.

8. Termination Payments

‘Termination Payment’ has now been defined within the JCT suite with a due date for such payments being prescribed by clauses 8.7, 8.8 and 8.12. Great care should be taken with this aspect of termination, however, as each of those clauses contain different due dates, so particular care should be taken with this aspect of termination.

Separately, the Contractor’s entitlement to direct loss and/or expense in the event of termination has been very slightly narrowed.

9. Contractor’s design liability

Clause 2.17.1.2 limits the Contractor’s design liability by stipulating that they owe no greater standard of skill or care than would otherwise be required of them under Statute and, further, by expressly confirming that they owe no “fitness for purpose” obligations.

At the same time, a new footnote suggests that parties might wish to consider an accompanying cap on the Contractor’s liabilities.

10. The Building Safety Act 2022

The new JCT does little to address the monumental changes introduced by the Building Safety Act 2022. Further, Article 7 of the new 2024 suite rather unhelpfully allocates the Contractor as both Principal Designer and Principal Contractor, despite the Contractor regularly not assuming such roles in practice. It does not directly address the regime for higher-risk buildings (HRBs), which imposes, among other things, new obligation relating to the golden thread of information and gateway regime under the building regulations. It does not deal with extended limitation periods of certain types of claim. It would seem, then, that this part of the 2024 edition requires amendments if the project relates to an HRB.

Looking for more?

Both Employers and Contractors are likely to benefit from seeking detailed advice as to their obligations and rights under the released 2024 suite, as well as what bespoke amendments are appropriate for them.

If you require any specific advice and guidance on your construction contracts, please contact Abigail Milner or Sam Thompson who would be more than happy to assist.