JCT to publish a 2011 edition of contracts

The Commencement Order brings into force Part 8 of the Local Democracy, Economic Development and Construction Act 2009, which relates to construction contracts.

The JCT 2011 edition reflects the amendments to the Housing Grants, Construction and Regeneration Act 1996 made by the legislation.

It is understood that the drafts of The Scheme for Construction Contracts (England and Wales) Regulations 1998 (Amendment) (England) Regulations 2011 and The Construction Contracts (England) Exclusion Order 2011 have been prepared and will be considered by Parliament in September.

The timing of the Scheme will not impact JCT contracts in terms of payment, as the contracts fully comply with the legislation.

Adjudication under a JCT contract is stated to be in accordance with the Scheme, and in the unlikely event that updated Scheme is not passed, the existing current Scheme will apply, save for the exceptions referred to in the contract.

In addition to reflecting the new payment legislation, the JCT 2011 edition makes other changes which include: a revised insolvency definition in the termination section; the revised Terrorism Cover provisions that were included in JCTs December 2009 update; the provision for appointment of the principal contractor under CDM Regulations has been extended to cover that function under the Site Waste Management Plans Regulations 2008; statutory reference to the Bribery Act 2010; Entries in respect of PI insurance relating to asbestos and fungal mould have been removed; revised retention provisions in the sub-contracts.

All new editions of JCT contracts will be published in September and made available through the publishers and JCT's usual stockists.