JCT 2016 edition contracts

The Joint Contracts Tribunal has confirmed some of the amendments that it is to include in its 2016 edition contracts.  These will bring in the previous updates to the 2011 edition contracts, for example, those included in the JCT’s Public Sector Supplement, its CDM amendment sheets and its named specialist update.  In addition, there are to be some other changes, to include:

  • changing the payment provisions to reflect fair payment principles and also to simplify the payment provisions;
  • dealing with the Public Contracts Regulations 2015; and
  • expanding Insurance Option C to allow alternative solutions to the problem of obtaining insurance of existing structures for contractors.

The 2016 edition contracts will include new ancillary documents, for example, a performance bond, a parent company guarantee and provisions for sub-contractors to grant third party rights under the Contracts (Rights of Third Parties) Act 1999.

It seems likely that many of these changes will bring the JCT 2016 edition contracts into line with many practitioners’ bespoke schedule of amendments to the JCT 2011 editions.

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