The JCT 2011 contracts have been issued.

The JCT 2011 contracts have been issued with major changes particularly in respect of the payment provisions.

The contracts were published on 9 September 2011 and those are compliant with the new ‘Construction Act’ (the Local Democracy, Economic Development and Construction Act 2009). There are two main issues to consider at this time; (i) that people will no doubt attempt to amend the JCT 2011 contracts to suit their own purposes – but amending the JCT 2011 contracts properly and effectively is not an easy task; and (ii) that Main Contractors may need use JCT 2011 Subcontracts even though the Main Contract is under a JCT 2005 contract (a process that may be difficult to control).

In either case, the watch-words are ‘proceed with extreme caution’.
If you have any queries about and/or require any advice in respect of the JCT 2011 contracts and/or the amendments of those contracts, you should immediately contact our office.

The ICE contracts have been withdrawn.

After 66 years of existence, the ICE Conditions of Contract have been withdrawn. We will now have to get used to an entirely new set of contracts called the Infrastructure Conditions of Contract.

The move follows the withdrawal (being a sad day for many) of the ICE from the ICE Conditions of Contract (which were first published in 1945) as it moves to endorsing the NEC3 Suite of Contracts.

In place of the ICE Conditions of Contract, trade bodies ACE and CECA have launched a new suite of standard forms of contract for infrastructure work, which are called the ‘Infrastructure Conditions of Contract’. These new contracts will be based on the ICE Conditions of Contract and will endeavour to offer to the Civil Engineering and Infrastructure industry continuity as the government identifies greater use of standard forms of contract as a means of eliminating waste from public sector construction.
Of course there may be ‘teething problems’ in the transfer over from the ICE Conditions of Contract to the Infrastructure Conditions of Contract, and the likely uptake of the new contract form is uncertain presently.

Therefore, if you have any queries about and/or require any advice in respect of the new Infrastructure contracts (or for that matter in respect of the demise of the ICE Conditions of Contract), you should immediately contact our office.

The new ‘Construction Act’ is here.

The Act is actually called the Local Democracy, Economic Development and Construction Act 2009, and after many ‘false alarms’ it at last comes into force (in England) on 1 October 2011. The new ‘Construction Act’ changes the Adjudication and Payment provisions in respect of construction contracts, and the issues covered by the new ‘Construction Act’ include the recognition of oral or partly oral contracts, costs in the Adjudication, Payer and Payee Payment Notices, Default Payment Notices, Pay Less Notices, and part suspension of the works, amongst other things.

All of the above points may have major implications for Employers, Contractors and Subcontractors, and therefore cannot be ignored.
If you have any queries about and/or require any advice in respect of the new ‘Construction Act’ you should immediately contact our office.