During the first half of 2024, the Joint Contracts Tribunal (JCT) published two significant updates, as outlined in our earlier briefings: the Design and Build Contract 2024 (DB 2024) contract family in April 2024; and the Minor Works 2024 (MW 2024) suite in May 2024. It has now issued a further update as part of its rolling programme of reviews with the publication of its Intermediate Building Contract 2024 suite on 10 July 2024. The documents published comprise:
- Intermediate Building Contract (IC 2024);
- Intermediate Building Contract with Contractor Design (ICD 2024);
- Intermediate Sub-Contract Agreement (ICSub/A) and Conditions (ICSub/C);
- Intermediate Sub-Contract Agreement and Conditions with Sub-Contractor's design (ICSub/D/A and ICSub/D/C);
- Intermediate Named Sub-Contract Tender & Agreement (ICSub/NAM) and Conditions (ICSub/NAM/C); and
- Intermediate Named Sub-Contractor/Employer Agreement (ICSub/NAM/E).
Alongside these, the JCT has also published:
- the Intermediate Building Contract Guide 2024 (IC/G); and
- the IC and ICD Admin Contract Administration Model Forms - template documents and notices intended to provide assistance with administering the contracts.
In this article, we look at some of the key changes in the IC/ICD 2024 suite.
Reminder: when is the Intermediate Building Contract intended to be used?
According to the JCT, the IC 2024 is suitable for use where:
- the work involved is of simple content involving the normal, recognised basic trades of the industry and without complex installations or other complex specialist work;
- the works (or most of them) are designed by, or on behalf of, the Employer (where the contractor is to design part(s) of the works, the ICD 2024 should be used);
- reasonably detailed contract provisions are needed - the IC 2024 is more detailed and has greater control procedures than the MW 2024 suite, but less detailed than the Standard Building Contract (the 2024 update of which is yet to be released); and
- drawings and bills of quantities are to be provided to the Contractor by the Employer.
Both the IC and ICD 2024 must be administered by an architect / contract administrator and quantity surveyor, and they have been drafted in such a way that they can be used by both private and public sector employers.
However, they are not designed to be used as design and build contracts - in such cases, the DB 2024 suite should be used.
Key changes
As with the DB and MW 2024 updates, the IC / ICD 2024 is not a wholesale revision of the existing JCT 2016 contracts. The updates mirror those in the DB and MW 2024, which we summarised in detail in our previous articles. As a reminder, some of the key updates relate to:
- Modernisation: in addition to the adoption of gender-neutral language throughout, the new suite permits most notices to be sent by email and accommodates electronic signatures;
- Building Safety Act: drafting has been added to reflect the new dutyholder requirements under Part 2A of the Building Regulations 2010, which were introduced as part of the reforms under the Building Safety Act 2022.
- Collaborative working, good faith and sustainable development: previously optional supplemental provisions relating to collaborative working, good faith, sustainable development and environmental considerations, and negotiation and dispute resolution, have been elevated into the main provisions. This is intended to reflect the principles outlined in the Construction Playbook - the Government's blueprint for working together with the construction industry to ensure public projects are delivered "better, faster, safter and greener" - which we explore in our earlier articles on the key policies set out in the Construction Playbook and its latest updates.
- Procedure for assessing extensions of time: the IC / ICD 2024 suite contains some minor changes to clause 2.19 governing assessments of delay by the contract administrator. However, since the IC / ICD is a less detailed contract than the DB, the process for assessing delay in clause 2.19 is much simpler - and this remains the same in this version.
- Relevant Events / Relevant Matters: the new and expanded Relevant Events / Relevant Matters covering epidemics and changes in law in the DB 2024 suite have been carried across to the IC / ICD 2024, and statutory undertakers have also been renamed as statutory providers. However, as in the 2016 edition, there is no provision in the IC / ICD 2024 regarding antiquities (so there is no expansion of this clause to cover asbestos etc., as we see in the DB 2024).
- Contractor's design liability in ICD 24: as in the DB and MWD 2024, a new sub-clause has been added clarifying that to the extent permitted by the Statutory Requirements, the Contractor will have no greater duty than to exercise reasonable skill and care in respect of its design and shall not be subject to a fitness for purpose obligation.
- Amendment to termination provisions: to make express provision for the payment and payment-related notice requirements of the Housing Grants, Construction and Regeneration Act 1996.
- Corporate Insolvency and Governance Act 2020 (CIGA): two new company insolvency grounds, reflecting CIGA, have been added.
- Fluctuations Options deleted: these are instead available online on the JCT website.
What does this mean for you?
Parties may wish to continue using the 2016 JCT suites of contracts, and there will inevitably be a transition period as the 2024 contract families gain increased use.
Whichever suite is used, certain parties may wish to prepare a schedule of amendments that changes particular terms of the JCT to better protect their position. There are a number of key issues we would normally expect to be dealt with in bespoke amendments.
Read the original article on GowlingWLG.com
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.