| June 2004 JCT News is an occasional series intended to give details of recently published JCT documents and amendments, information about work in progress and future publication dates, so far as they are known. This, the fifth issue of the new series, includes:
1. JCT Major Project Sub-Contract Following the successful launch of the JCT Major Project Form in June 2003, JCT in conjunction with the publisher RIBA Enterprises launched the Sub-Contract for use with the MPF on 6 April 2004. The Sub-Contract is strongly endorsed by both the National Specialist Contractors Council and the Construction Confederation. The Sub-Contract comprises:
Appendix A - project specific information relevant to the Sub-Contract (e.g. programme requirements, attendances, the extent of design responsibility) and also much of the information commonly found in the Articles of Agreement. Appendix B - relevant main contract information including main contract appendix entries. The Requirements - these set out what the contractor requires of the sub-contractor and may call for Proposals from the sub-contractor. The Proposals - where required these will set out the manner in which the sub-contractor intends to meet the relevant sections of the Requirements. The Pricing Document - this contains financial information concerning the calculation of the Sub-Contract Sum, the evaluation of Changes and the manner in which the Sub-Contract Sum is paid to the Sub-Contractor. The Sub-Contract is in a single document and comes with a separate 28 page Guidance Note. Like the MPF, the Sub-Contract permits a flexible approach to the extent of design but it is not necessarily back-to-back with the main form, for example, the risk of ground conditions is dealt with differently. The Sub-Contract does not provide for retention and, unlike the MPF, it does not provide for third party rights. 2. JCT Short Form of Domestic Sub-Contract The JCT Short Form of Domestic Sub-Contract was published in 2003 by CIP Limited. This is a simple, straightforward form of sub-contract and together with the Guidance Notes extends to only six pages and is presented in a folded leaflet format. This sub-contract is suitable where the main contract is the JCT Agreement for Minor Building Works and may also be used with other forms of main contract. The JCT Short Form of Domestic Sub-Contract is suitable for small sub-contract packages or ones of straightforward content, in each case fully designed, i.e. packages of a generally low degree of risk. It is not suitable where the sub-contract works are of a complex technical nature or where they involve design work. The form is not fully back-to-back with any main contract and is not intended for complex or higher risk packages of work. The wording of the JCT Short Form of Domestic Sub-Contract is easy to read and most of its provisions are self-explanatory. 3. JCT Standard Form of Sub-subcontract The JCT Standard Form of Sub-subcontract was published by CIP Limited on 1 June 2004. This is the first sub-subcontract that JCT has developed and it comprises the agreement, the conditions and guidance notes in a total of ten pages. The JCT Standard Form of Sub-subcontract is a simple, straightforward form of contract. It is suitable for a sub-subcontract where the main contract is on a JCT form which has a "main contractor" regardless as to whether the subcontract is on a JCT form but clearly it is desirable that a JCT subcontract form is used to ensure there is no inconsistency of provisions. The wording of the JCT Standard Form of Sub-subcontract is intended to be easy to understand and, like the Short Form, most of the provisions are self-explanatory. 4. Guide to the JCT Domestic Sub-Contracts A revised version of the Guide to the JCT Domestic Sub-Contract was published in November 2003. This Guide covers the four versions of this sub-contract, namely;
Sub-Contract (DSC/SC) for use with the Standard Form of Building Contract 1998 Edition incorporating a Sectional Completion Supplement; Sub-Contract (DSC/DP) incorporating Sub-Contractor's Designed Portion for use with the Standard Form of Building Contract 1998 Edition incorporating a Contractor's Designed Portion Supplement; Sub-Contract (DSC/DPSC) incorporating Sub-Contractor's Designed Portion for use with the Standard Form of Building Contract 1998 Edition incorporating a Contractor's Designed Portion Supplement and a Sectional Completion Supplement. and provides information on the use of the various versions. 5. JCT Framework Agreement JCT has produced a binding and a non-binding framework agreement and is currently seeking approval from its Colleges. No publication date has been set. 6. JCT Partnering Agreement JCT is working assiduously towards finding benchmark provisions that are suitable and acceptable by the construction industry and its users. To this end JCT entered into discussions with Be regarding their experience in producing the Be Collaborative Agreement and has set up a Joint Working Party with Be to see if a JCT Partnering Agreement, principally for use within the local authority sector, can be developed. 7. JCT Amendments In July 2003 an amendment was issued in respect of most JCT standard forms of building contract to the effect that contractors and sub-contractors should encourage the use of labour that is registered under the Construction Skills Certification Scheme (CSCS) or under an equivalent recognised qualification scheme. This was the only Amendment issued during 2003 and no Amendments to JCT standard forms of contract are planned for 2004. 8. Review of Insolvency Provisions Following various legislative changes, JCT instigated a review of the termination provisions particularly related to insolvency. JCT is pleased that the Association of Business Recovery Professionals (R3), which was previously known as the Society of Practitioners of Insolvency, has agreed to assist in this review. Part of this review also involves the provisions for termination in the event of a corrupt act but this will in a large part be determined by progress with a proposed Corruption Bill. Subject to this it is anticipated that this review will be completed during 2004 and any changes that result would be incorporated into the 2005 publications. 9. Downloadable contracts In the previous newsletter it was announced that JCT's publishers intended to offer downloadable versions of the Building Contract for a home owner/occupier. Because of the proposed change in moving from two publishers to a new sole publisher it was agreed to postpone the availability of on-line versions of this contract. 10. JCT Povey Lecture Last October, JCT held the first Povey Lecture in honour of Philip Povey, who served JCT for over fifty years. This is to be an annual event held in London. This year's event is to be held on Wednesday, 13th October at the RIBA and Professor Roger Flanagan of the University of Reading will give the lecture. Entry is by ticket and if you are interested in obtaining further information on this event, please send an e-mail to stanform@jctltd.co.uk. 11. Web site (www.jctltd.co.uk) JCT's web site has undergone further changes and now provides a significant information source that details all JCT contracts and the revised criteria for use. In viewing the criteria it will be evident that JCT has moved away from using financial limits as one of the criteria for selecting a contract for a particular project. In addition, the site contains an embryonic section on frequently asked questions and a comprehensive search facility. 12. A chance to air your views! Sweet & Maxwell, JCT's new publisher from May 2005, will be re-issuing the current JCT documents in 2005. JCT together with Sweet & Maxwell therefore has the opportunity to change features of both the electronic and paper contracts and it would like to gather your thoughts on issues such as how amendments are incorporated, the physical appearance of the documents, naming and labelling, and availability. If you would like to make a comment on any aspect of the documents (except the wording of the content) please e-mail your comment to: jct@sweetandmaxwell.co.uk. Sweet & Maxwell is also recruiting for a User Panel - would you like to give your opinions on new ideas for how the contracts are presented and sold? This could be by e-mail, phone or at a meeting. If so, please send an e-mail to jct@sweetandmaxwell.co.uk. 13. Documents issued since May 2003 May 2003
(DSC/A/DPSC and DSC/C/DPSC) New forms June 2003
New form July 2003 Amendments on Construction Skills Certification Scheme. Separate Amendments were issued for the following documents:
- JCT 98 - NSC documentation 1998 (includes an amendment to NSC/C) - PCC 98 - NSC(PCC) documentation 1998 (includes an amendment to NSC/C(PCC)) - WCD 98 - MC 98 - WKS documentation 1998 (includes an amendment to WKS/2) - IFC 98 - NAM documentation 1998 (includes an amendment to NAM/SC) - MW 98 Amendment 4 - MTC 98 Amendment 1 - TC/C 02 - C/CM 02 - HG(A) 02 - DSC documentation 2002 (includes an amendment to DSC/C, DSC/C/SC, DSC/C/DP and DSC/C/DPSC) August 2003
New form IFC 98: SCS Reprint incorporating Amendment 5 NSC/N 98 Reprint incorporating Amendment 5 September 2003
Reprint incorporating Amendment 5 JCT 98: PAQ and LAQ Reprint incorporating Amendment 5 WCD 98 Reprint incorporating Amendment 5 IFC 98 Reprint incorporating Amendment 5 MW 98 Reprint incorporating Amendment 5 C/CM Agreement 02 Reprint incorporating Amendment 1 October 2003
Reprint incorporating Amendment 5 JCT 98: SCS: XQ and WQ/AQ Reprint incorporating Amendment 5 JCT 98: CDPSCS: XQ and WQ Reprint incorporating Amendment 5 PCC 98 Reprint incorporating Amendment 5 NSC/T 98: Part 2 Reprint incorporating Amendment 5 NSC/A 98 Reprint incorporating Amendment 5 November 2003
Revised Guide to DSC 02 JCT 98: CDPS: XQ and WQ Reprint incorporating Amendment 5 December 2003
Reprint incorporating Amendment 4 NSC/W 98 Reprint incorporating Amendment 5 NSC/T 98: Part 1 Reprint incorporating Amendment 5 January 2004
Reprint incorporating Amendment 5 TC/T: Parts 1 and 2 Reprint incorporating Amendment 1 March 2004
New form NAM/T 98 Reprint incorporating Amendment 5 April 2004
Reprint incorporating Amendment 1 NSC/T 98: Part 3 Reprint incorporating Amendment 5 14. Range of JCT contract documents |
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©JCT 2007
The Joint Contracts Tribunal (JCT) is the industry’s foremost contracts producing organisation. It produces standard forms e.g. standard construction contracts, standard building contracts and subcontracts for the construction industry. JCT 2005 suite of contracts includes JCT - Constructing Excellence Contract : Partnering Contract, Framework Agreement, Major Project Construction Contract, Standard Building Contract, Design and Build Contract, Intermediate Building Contract, Minor Works Building Contract, Repair and Maintenance Contract, Collateral Warranties and Partnering Charter. It also produces consumer contracts such as the homeowner building contract.