Huge and important changes to payments on JCT contracts

Disputes arise for different reasons and unique circumstances prevent one from using a universal strategy to rectify them. Fortunately, ours is a company that specialises in a multitude of areas and the disputes that surround them, including the likes of JCT amendments. Whatever your requirements, we shall work on behalf of both parties in order to find common ground between you.

In the most recent overhaul to the Joint Contracts Tribunal suite of customary form contracts, there has been a plethora of critical alterations. The improvements will influence the majority of UK construction projects where JCT contracts are the forms used most frequently. Should parties not know of the conversions, or choose to disregard them, they might discover that key contractual entitlements have become lost to them.

In terms of amendments that are welcomed by contractors, there have been changes to payments. The modifications establish interim payment valuation dates, which are intended to promote fair payments by functioning down the supply chain. However, these enhancements will only have a limited advantage to subcontractors.

This is unless the primary contractors conform to the new JCT periods instead of lengthening them considerably, which is a typical practice. Additionally, these reorganisations enable the monthly payment cycle to persist after practical accomplishment up to the final payment’s due date, via a new default rolling rotation of monthly valuations.

Another substantial tweak is the initiation of a net contribution clause. Despite the popularity that this has with consultants and contractors, concerns have been raised for employees. They reverse the ordinary law placement of several liability and joint. Furthermore, they restrict a defaulting party’s possible liability where multiple persons hold responsibility for the losses of the guiltless party.

At Amison Dispute Resolutions, due to our experience in dealing with the diverse nature of contract disputes, we make it a point to offer clients a dynamic service. Aside from meeting your specifications, our business also works to provide you with a solution that properly suits your budget.

If there’s ever any trouble, particularly with JCT amendments, our team is the one to call.