JCT Contracts 2024 – the latest developments, publications and procurement points

The most recent additions to the 2024 JCT suite of contracts, including the Construction Management (CM) and Management Contracting (MC) contract families were published earlier this month. Those contracts now join the JCT Standard, Minor Works, Intermediate, Measured Term and other JCT contracts, guidance, and documents published over the past year.

Again, the changes to these contract families are entirely consistent with those made to the other contracts which we covered in some detail here back in April 2024. In summary, the MC and CM contracts also adopt gender-neutral language, make provision for electronic communications, require contractors (and construction managers) to provide information regarding the environmental impact of goods and materials and encourage environmentally friendly innovation.

Similarly, the ‘good faith’ requirements, exclusion of fitness for purpose design obligations and new drafting dealing with physical conditions, epidemics, changes in law and termination familiar from previous 2024 updates also appear here, albeit varied as necessary to reflect the usual approach and risk profile of management contracting and construction management respectively. The very ‘light touch’ approach to the Building Safety Act 2022 adopted in the remainder of the 2024 suite, essentially limited to identifying dutyholders, has also been reflected in these new contracts.

The JCT has adopted a similarly light approach to another significant change in law which may cause parties some concern. The JCT CM and MC contract families are the first to be published after the repeal of the Public Contract Regulations and the Procurement Act 2023 coming into force. Whereas the Regulations required that ‘public contracts’ include express termination rights exercisable where a contract breached the procurement rules, the new Act operates by implying a right to terminate in those circumstances.

The JCT has responded to that change simply by deleting references to the Regulations. While public contracts clearly do not now need to include an express right of termination, the approach here leaves open the question of compensation and cost recovery following any such termination. This feels like a material omission, especially given that the Procurement Act itself invites contracting parties to specify appropriate compensation mechanisms. We anticipate that public bodies and the contractors they appoint will seek greater clarity on this issue in negotiating these contracts. For more information on the content of the Procurement Act 2023 and how this might affect future procurements and contracts, please read our Guide.

In all other respects, the updates reflect those to the other 2024 contracts and do not change the overall approach or risk profile from the 2016 versions. There is nothing else in these updates to alarm current users of the CM and MC contracts other than perhaps the lack of detail around the Building Safety Act, which will require careful consideration on a project-specific basis.

At this stage, we still await a firm date for publication of the – much anticipated and new to the JCT – Target Cost Contract. More to follow on that . . .