The release of the 2024 JCT suite of contracts marks a significant update to one of the construction industry’s most widely used contractual frameworks. Several changes work to modernise contract administration and align with contemporary practices, aiming to make the contracts more flexible, futureproof and reflective of industry needs.
For our latest webinar, Dr Stuart Kings, co-founder of Sypro, author of the NEC Project Manager Accreditation Programme and an experienced JCT user, outlined the seven key changes to the contract, their impact on projects and how to maintain JCT best practice with Sypro.
What’s changed in JCT 2024?
While this is the first major update since JCT 2016, JCT 2024 does not mark a dramatic departure from its predecessor. Instead, it introduces key updates that reflect the direction of the industry, ensuring contracts work more effectively in line with recent changes and adapt to evolving industry needs.
Reflecting updated legislation and guidance
Significant changes have occurred across the industry in the past eight years, prompting JCT to align more closely with key updates such as the 2020 Construction Playbook. The updated termination provisions now explicitly reference the Construction Act, offering greater clarity around payment procedures and insolvency.
Other changes reflect broader societal shifts, such as the introduction of a relevant event to cover epidemics, a modernised approach to communication and the adoption of gender-neutral language throughout the contract suite – a small but significant step toward inclusivity in the industry.
So, what are the seven key changes to JCT? Dr Stuart Kings talks us through them.
Collaborative working
A notable shift in JCT 2024 is a stronger emphasis on collaboration. Article 3 now explicitly requires parties to act cooperatively, in good faith and with mutual respect – concepts that will already be familiar to NEC users. Previously, collaboration was encouraged but not mandatory. The new approach ensures that industry professionals work together to find quality solutions and resolve potential disputes before they escalate.
A previously supplemental provision 5 in JCT Design and Build 2016 now appears in Article 3:
‘The parties shall work with each other and with other project team members in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect. To that end, each shall support collaborative behaviour and address behaviour which is not collaborative’.
Dr Stuart says: “The term ‘addressing behaviour’ is quite interesting and goes one step further than NEC. We don’t just have to behave ourselves; we have to address behaviour around us that we deem as not being collaborative. NEC talks about working in a spirit of trust, but this focuses more on the individual, whereas JCT goes further by addressing the behaviour of those around you. It’s a significant step towards ensuring cooperation and collaboration.”
Sustainable development and environmental considerations
The growing importance of sustainability is reflected in JCT 2024. Previously, sustainability clauses were supplementary, but they have now been integrated into the main contract, encouraging contractors to propose environmentally sustainable improvements to their work.
Dr Stuart adds: “Contractors are now encouraged to propose economically viable amendments, such as improving lighting systems or optimising construction for sustainability. However, compared to NEC4 introducing clause X29, JCT’s changes remain suggestive rather than mandatory. NEC4 X29 includes detailed climate change provisions and enforcement mechanisms like financial penalties and incentives. It may be worth maintaining a hybrid use of JCT and NEC for a more detailed and enforceable sustainability approach.”
Notifications and negotiation of disputes
JCT 2024 introduces a proactive approach to dispute resolution, similar to the NEC’s senior representatives. Parties must notify each other of potential disputes, and their senior executives are required to engage in direct, good-faith negotiations to resolve issues before they escalate. While this does not override the Construction Act’s adjudication rights, it encourages dispute resolution at an earlier stage.
Dr Stuart says: “Having been involved in disputes representing both clients and contractors, I know that people often don’t know who to contact. By having named senior executives, you know exactly where to go, which will go some way to proactively avoid disputes. It’s always appropriate to have a dispute resolution procedure in a valid contract, so this is another positive addition to JCT.”
Extension of time and unforeseen events
The response time for extension of time requests has been reduced from 12 weeks to eight weeks, making the process more efficient. Updates also reflect lessons learned from COVID-19, with relevant events now covering epidemics and the discovery of antiquities. Additionally, contractor rights regarding material and labour shortages, legal changes and government guidance – such as COVID-related restrictions – are now clarified.
Dr Stuart comments: “Reducing the response time to eight weeks is a sensible move, but I do think it could be reduced even further. Providing quicker responses to extension requests, greater clarity on epidemic-related delays and a fairer balance between parties is essential. On some projects, clients amend contracts to make them less favourable to contractors, which inflates costs and increases the risk of claims. A more balanced contract is a great step forward.”
Target cost contract
Due to industry demand, JCT 2024 introduces the Target Cost Contract (TCC), which includes a main contract, subcontract and guide. This contract type shares risk and rewards between the employer and contractor, promoting cost-saving measures without compromising quality.
Dr Stuart explains: “This change has been driven by industry demand and is long overdue. Aligning with NEC’s Main Option C and D, the TCC encourages collaborative working with open-book pricing and incentivised cost savings. Gain-share provisions ensure fair risk distribution among clients, contractors and the supply chain.”
Building safety
JCT 2024 incorporates legislative changes, including the Building Safety Act 2022. The new provisions ensure compliance with the latest UK building safety plans and CDM regulations. Specifically, the contract now covers Part 2A of the Building Regulations, outlining the appointment of key duty holders such as the principal designer and principal contractor.
Dr Stuart adds: “Unlike NEC, which includes a general clause requiring compliance with the law, JCT takes a more structured approach by incorporating specific provisions. This ensures greater clarity around safety responsibilities and compliance.”
Modernised communications
Electronic communications are now accepted for most contract notices, improving efficiency and reducing reliance on paper-based communication. The update reflects the need for more flexible, digital-friendly contract administration, ensuring that critical information is properly recorded and timestamped – assuring version control and avoiding working from incorrect or outdated information.
Dr Stuart explains: “A bit like the gender-neutral language update, recognising electronic communications modernises the contract and brings JCT into the modern day. Critical notices can now be sent via email, reducing disputes caused by improper communication methods. This also aligns with NEC4 Clause 13.2, recognising cloud-based systems like Sypro to minimise disputes.”
How Sypro supports live JCT contracts
Sypro is specifically designed to modernise contract management while reducing risks. Its centralised platform ensures all communications are documented, providing transparency and efficiency while maintaining compliance.
Key features include:
- An overview of project health, relevant events and timelines.
- Automated tracking of key contract procedures with alerts for overdue or upcoming actions.
- Email notifications linked directly to the system for timely responses.
- Easy creation of relevant event notifications, including clause selection and party notifications.
- Full audit trails with timestamping down to the second.
- An in-built ability to track conversations within a tab against individual activities to retain all event-related discussions within one central platform.
- Exportable reports for real-time project monitoring.
The summary
JCT remains one of the UK’s most widely used standard-form contracts, covering around 50% of construction projects. While these changes align JCT more closely with NEC contracts rather than breaking new ground, they are welcome improvements that enhance collaboration and efficiency.
At Sypro, we help you manage JCT, NEC or any other contract type through our software—ensuring effective management, compliance and risk mitigation. Watch back the full webinar with Dr Stuart Kings or get in touch with us for a demo to see how we can support your projects.
Book a free demonstration
