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 much more flexible, futureproof, and reflective of industry needs.
So, what’s changed in JCT 2024?
While this is the first major update since JCT 2016 eight years ago, JCT 2024 does not mark a dramatic departure from what came before. Instead, it introduces key updates that reflect the direction of the industry, looking to work more effectively in line with changes in recent years.
Equally, some changes are more reflective of the direction of society – such as the introduction of a relevant event to cover epidemics, and the use of gender-neutral language throughout the suite.
Reflecting updated legislation and guidance
Significant changes have happened across the industry in the eight years since JCT’s last release. Greater alignment is introduced with key updates like the 2020 Construction Playbook, and the updated termination provisions now refer expressly to the Construction Act to offer more clarity around payment procedures and insolvency.
The biggest of those is the Building Safety Act 2022, and JCT 2024 now has provisions covering the new Part 2A of the Building Regulations. Clauses for the appointment of key dutyholders like the Principal Designer and Principal Contractor are included, with the changes specifically addressing safety and compliance requirements.
There is no need to explain why adherence to the Building Regulations is so important, but Sypro’s solution provides a centralised platform for clear responsibilities, documentation recording and compliance to key safety milestones, such as Gateway signoffs.
Collaboration and sustainability
A big shift in JCT 2024 contracts is a new emphasis on collaboration, with Article 3 explicitly requiring parties to act cooperatively, in good faith, and with mutual respect – a concept very familiar to those utilising NEC contracts. Previously this was not mandatory, but the shift places emphasis on the need for the industry to work together to find the best quality solutions moving forwards – and this also extends to collaborating on solutions to potential disputes before escalation.
Meanwhile, the increasing importance of the environment and climate change is recognised within JCT 2024. Previously supplementary sustainability clauses are now integrated into the main body of the contract, introducing encouragement for contractors to propose environmentally sustainable improvements to works – all of which can be monitored effectively through Sypro.
A new contract family: Target Cost Contract
JCT 2024 introduces a new contract family – the Target Cost Contract. This particular contract type – which includes main contract, subcontract, and guide – shares the risk and rewards between the employer and contractor, encouraging cost-saving measures without compromising on quality.
While new to JCT, this particular type of contract is familiar to NEC users in the industry – and with many Sypro users already managing Target Cost Contracts under NEC, our system is already set up to effectively manage this new introduction, including accurate cost tracking and shared risk management.
Modernised communications
Electronic communications are now accepted for most contract notices, making the process more efficient and faster. The latest update reflects the need for more flexible and digital-friendly contract administration, allowing emails and digital platforms to replace traditional paper-based communication in most situations.
It’s clear why this is a key update for modern processes, removing the risk of information being lost outside of central platforms, and minimising the risk of miscommunication as a result. Sypro is built specifically to drive this modernisation of contract management forwards while removing those chances of unnecessary risk – with a centralised platform housing all communications and providing full transparency on actions and progress for all to see, working simultaneously to provide efficiencies and all-important compliance.
The summary?
Given JCT is one of the UK’s most popular standard-form contracts and used on around 70% of construction projects, these changes are welcomed to address modern challenges. There is a way to go for JCT to meet the dynamism offered by NEC contracts, and in many ways the changes are keeping pace with NEC contracts rather than forging a path.
This being said, these changes will further push the collaboration and efficiency of contract management and compliance the industry needs to push into the future. At Sypro, we’re able to help you manage JCT, NEC or any other contract type through our software – making sure that no matter what your contract, your management is effective and efficiently protects your compliance.
Get in touch with us to set up a demo or introductory call and find out how we can help protect your projects.
Book a free demonstration
