Analysis of Key Changes in the JCT Design and Build 2016 Contract

This report examines the key revisions introduced in the JCT Design and Build Standard Form Contract 2016. The changes include the incorporation of Interim Valuation Dates (IVD) to comply with fair payment practices, simplification of Contract Particulars, and introduction of a procedure for prompt assessment of Loss and Expense claims. The amendments also provide flexibility in adopting Fluctuations Provisions and recognize Public Contract Regulations of 2015 for public sector works. Furthermore, the changes consolidate payment notice requirements and incorporate amendments to reflect the CDM Regulations of 2015. The overall aim of these changes is to simplify and make construction operations fairer.

Changes arising in the JCT Design and Build Standard Form Contract 2016
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BSM575: Construction Law
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A Construction Contract is an instrument encompassing the agreement between parties; that
is the client or employer and the contractor, outlining the rights and obligations of both
parties in a particular transaction.1 The contractor agrees to supply work and material
necessary for construction while the client agrees to pay the agreed consideration for services
rendered. Under the Housing Grants, Construction and Regeneration Act 1996 it is
recognised as an agreement with regard to ‘construction operations’.2 The Joint Contracts
Tribunal (JCT) provides various standard forms that’s can and have been used in the
procurement stage as well as contract processed in contraction.3 In 2016, the JCT published a
new edition of the Design and Build Contract,4 the following summary aims to outline the
changes included in this edition as compared to its 2011 predecessor.
The changes introduce Interim Valuation Dates (IVD) which serves the objective of
complying with the Fair Payment Campaign by the Government aimed at achieving standard
payment terms within the industry by 2015. For the JCT, the incorporation of IVD aims to
provide a more synchronised and fairer system.5 The IVD is agreed on by parties within the
contract guided by the standard form; they should be in the same day each month during the
duration of the project or on the nearest business day where that is not applicable. Where not
specified, the IVD will by default fall a month after the Date of Possession.
Another notable change is the simplification of The Contract Particulars in the Articles
Agreement by the deletion of the Particulars section. Previously this section led to confusion
with regard to Third Party Rights as it set out the warranty as well as third party
1 Robert Gordon University, Topic 2: Building Contracts Generally (Robert Gordon University 2017) 1
2 Housing Grants, Construction and Regeneration Act 1996 Part II, ss 104-107; See, John Adriaanse,
Construction Contract Law (4th edn, Macmillan Education 2016) 2-3.
3 Built Intelligence, ‘JCT Selecting the Right Contract’ (YouTube, 27 June 2014)
https://www.youtube.com/watch?v=Q_z6zxkkGNs accessed 11 October 2017.
4 Suzanne Reeves, ‘JCT Design and Build 2016 Contract’ (Wedlake Bell, 6 December 2016)
https://wedlakebell.com/frequently-asked-questions-jct-design-and-build-contract-2016/ accessed 11 October
2017
5 Edward Colclough, ‘Payment under JCT 2016: Interim Valuation Dates- another date to remember?’ (Fenwick
Elliot, 3 May 2017) https://www.fenwickelliott.com/blog/contracts-documentation/payment-jct-2016-interim-
valuation-dates accessed 11 October 2017

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requirements. However, the changes provide an option for employers or clients to either
adopt the JCT particulars or incorporate their own and reference them in the Particulars.6
Other Amendments include the introduction of a procedure to facilitate the prompt
assessment of Loss and Expense claims. Additionally, the amendments have also allowed for
flexibility with regard to the adoption of Fluctuations Provisions where they are used. For
public sector works, the changes have also recognised and included the Public Contract
Regulations of 2015. Further, the changes have consolidated the payment notice requirements
of the Construction Act within one subsection. The changes have also incorporated
amendments to reflect the CDM Regulations of 2015. Although some of the recent
amendments are likely to face some challenges,7 it is evident that the changes aimed to
simplify and make fairer construction operations.
6 Reeves (n 4)
7 Colclough (n 5)

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BIBLIOGRAPHY
Adriaanse John, Construction Contract Law (4th edn, Macmillan Education 2016)
Built Intelligence, ‘JCT Selecting the Right Contract’ (YouTube, 27 June 2014)
https://www.youtube.com/watch?v=Q_z6zxkkGNs accessed 11 October 2017.
Colclough Edward, ‘Payment under JCT 2016: Interim Valuation Dates- another date to
remember?’ (Fenwick Elliot, 3 May 2017) https://www.fenwickelliott.com/blog/contracts-
documentation/payment-jct-2016-interim-valuation-dates accessed 11 October 2017
Housing Grants, Construction and Regeneration Act 1996
Reeves Suzzanne, ‘JCT Design and Build 2016 Contract’ (Wedlake Bell, 6 December 2016)
https://wedlakebell.com/frequently-asked-questions-jct-design-and-build-contract-2016/
accessed 11 October 2017
Robert Gordon University, Topic 2: Building Contracts Generally (Robert Gordon University
2017)