UK Contractors: What you need to know about the 2024 Edition of JCT Contracts

Recently, the Joint Contracts Tribunal (JCT) released its 2024 Edition of Contracts, the first revision of contracts since 2016.

If you’re not too sure what the 2024 JCT Contracts revisions are, or what their impact is on your construction business, you’ve come to the right place.

We explore what the JCT Contracts are, some of the key changes in this 2024 update, as and how your construction company can adhere to the revisions.

What are the JCT Contracts?

The JCT contracts are standard forms of construction contracts used in the UK, providing a framework for managing construction projects, defining the roles, responsibilities, and obligations of all parties involved.

JCT has been around since 1931, so it’s an established framework with plenty of time in the game, representing a variety of interests in the industry.

Key provisions include contract sum, time and completion, variations, payment, insurance and indemnity, dispute resolution, and termination of contract.

Benefits of the 2024 Edition of Contracts

• More collaboration and good faith: Explicitly require parties to collaborate in good faith throughout the project.
• Sustainability focus: Emphasises environmental considerations, reflecting the construction industry's growing focus on ESG factors.
• Mandatory provisions: Several provisions that were optional in the 2016 version, like those for collaborative working and sustainability, are now mandatory in the 2024 contracts.
• Modernised communication: Allows for electronic communication and eSignatures, facilitating digital workflows - massively important for doing business in the modern world.
• Clearer design liability: The contractor's design liability is now limited to the use of reasonable skill and care, and there's no general liability for ensuring the design is fit for purpose (unless required by law).
• Streamlined claims process: The process for extensions of time claims has been streamlined for faster dispute resolution.
• Termination updates: The termination provisions have been revised, and a new Target Cost contract option offers more flexibility in project management.
• Fluctuations handled differently: Fluctuation options are no longer included in the contract itself. Instead, they are available for download from the JCT website.

Understand These 6 Reasons Why Construction Projects in the UK and Ireland Get Delayed

Challenges for main contractors and how digitising procurement can help

Increased administrative burden

✅ Digitised procurement automates many contract management tasks, such as document generation, storage, and retrieval, reducing administrative overhead.

Complex contractual relationships

✅ Manage multiple contracts and parties in a centralised platform for communication and collaboration.

Embracing collaborative working

✅ Digital collaboration tools can facilitate communication and information sharing between project stakeholders.

Adapting to electronic communication

✅ Digitised procurement enables electronic document management and communication, streamlining processes and improving efficiency.

Managing fluctuations

✅ Consolidating fragmented procurement process into a single system provides clear data and analytics to support decision-making related to pricing and cost management.

Potential cost increases

✅ Data and insights provided by digitised procurement helps control costs by providing tools for budget tracking, cost analysis, value engineering and procurement optimisation.

Legal and professional fees

✅ By automating and standardising contract management tasks and providing insights into potential issues, digitised procurement reduces the need for external legal and professional advice.

In essence, the best way to manage the complexities of JCT 2024 is to transform existing, cumbersome procurement processes into a streamlined and digital experience.

This is the key to improving efficiency, reducing risks, and enhancing overall project performance. Contact the ProcurePro team today for procurement advice tailored to your company's needs.