Key changes to JCT Design and Build Contract

The Design and Build 2016 is the second arrival in the 2016 edition of JCT contracts, following the release of the Minor Works family in June 2016. New features as part of the update include:

• Incorporation of the provisions of the JCT Public Sector supplement 2011 that relate to fair payment, transparency and building information modelling, (BIM).
• Adjusted to reflect the CDM Regulations 2015 and the Public Contracts Regulations 2015.
• Amendments to the works and existing instructions and insurance provisions to make them more flexible.
• Revision and simplification of the Section 4 Payment Provisions.
• Inclusion of provisions for the grant of Performance Bonds and parent company guarantees.   
• Extension of the optional provisions for Collateral Warranties from sub-contractors to include third party rights.

One of the greatest changes is to payment provisions in Section 4. There is a new mechanism for adjusting the contract sum, and a move towards a common payment regime for interim and final payments, normally 14 days from its due date. There is also a new procedure at clause 4.20 for the prompt assessment of loss and expense. This includes the requirement to provide monthly updates until information reasonably necessary to allow ascertainment of the total amount of loss and expense has been supplied.

In relation to insurance, schedule 3 has been simplified. Insurance option C now allows a ‘replacement schedule’ to suit the parties’ particular insurance requirements. This will give greater flexibility.

David Brown can be reached at d.brown@gullands.com