JCT revises 2002 JCT Construction Management

The revised Joint Contracts Tribunal (JCT) 2002 Construction Management documentation is now available from stockists.

The revisions bring the JCT guide inline, where appropriate, with the approach and terminology adopted in the 2005 editions of other JCT contracts.

There are several main changes to the documentation: Provision is now included for the grant of rights to purchasers, tenants and funders, either by way of rights under the Contracts (Rights of Third Parties) Act 1999 or by collateral warranties.

Both the construction manager and trade contractor may be required to take out and maintain professional indemnity insurance.

Express reference is now made to the possibility of mediation.

In the case of adjudication, the Scheme for Construction Contracts has been included, subject to minor modifications, in place of the JCT rules.

There must be a deliberate 'opt in' if the parties are to have the right to require that disputes be referred to arbitration.

If that is not done, unless otherwise later agreed and subject to either party's right to refer a dispute to adjudication, disputes are to be resolved by litigation.

The documents no longer contain detailed provisions in relation to the Construction Industry Scheme (CIS) and VAT; instead they rely on relevant statutory provisions.

There are no longer standard provisions in relation to electronic data interchange, as to which the parties are entirely free to incorporate their own rules.

Each document contains integrated provisions regarding commencement and completion of the project in sections.

Minor changes reflect the 2007 CDM Regulations.

The trade contract incorporates the revisions to the listings of relevant events (in relation to extension of time) and relevant matters (in relation to loss and/or expense), now standard across most of the JCT suites of contracts and sub-contracts.

The trade contract now contains a design submission procedure similar to that in the Standard Building Contract 2005 (SBC 2005) and related sub-contracts.

The 2008 Construction Management documentation consists of the following: The Construction Management Appointment (CM/A 2008), by which the employer appoints the construction manager to manage the procurement of the project.

The Construction Management Trade Contract (CM/TC 2008) under which the employer employs each trade contractor to undertake his specific part or parts of the work on the project.

Collateral Warranties CMWa/PandT (Construction Manager Collateral Warranty for a Purchaser or Tenant), CMWa/F (Construction Manager Collateral Warranty for a Funder), TCWa/PandT (Trade Contractor Collateral Warranty for a Purchaser or Tenant) and TCWa/F (Trade Contractor Collateral Warranty for a Funder).

The Guide, which includes in annexes A, B and C model-provisions for services for use in schedules five, six and seven of the Construction Management Appointment.

The Construction Management Appointment is appropriate where a construction manager is to manage the project on behalf of the employer and where the employer is to enter into direct separate trade contracts using the Construction Management Trade Contract or a specially prepared trade contract.

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