JCT Minor Works Building Contract 2016 Launched

As previewed in our last update, the JCT has launched its 2016 Edition of the Minor Works (MW 2016) suite of contracts.

Below we have sought to provide you with an overview of some of the changes made (this list is not exhaustive):

Payment

• MW 2016 tightens up the interim payment provisions and introduces Interim Valuation Dates (IVD’s) as a defined term.
•  The due date for each payment now runs from the IVD (7 days later) whereas previously the due date was at 4 weekly intervals from the commencement date.  This new structure is more certain insofar as determining when the due date actually lands.
• The Contractor is now entitled to make an application for payment each month, not later than each IVD.  The MW 2011 did not provide for this, instead simply relying upon the Architect/CA issuing an interim certificate.
•  The Contractor is now entitled to monthly interim payments in the period between PC and the final payment, amended from the MW 2011 position of payments every two months.

Termination

• The termination provisions have been amended so as to take account of regulation 73 of the Public Contract Regulations 2015, which deals with the circumstances under which the contract was tendered.
• MW 2016 contains a new clause permitting either party to terminate “if there is a material loss of or damage to any existing structure”, however this right to terminate is subject to it being “just and equitable” to do so.

CDM Regulations 2015

• Perhaps unsurprisingly MW 2016 incorporates those amendments published as JCT Amendment 1: CDM Regulations, to deal with the updated legislation.

Our advice, as ever, is to review your contract at the outset of any project and make sure you are aware of the provisions and what you must do to comply with them, bearing in mind that often the standard form contracts are amended.  You may also need to amend your standard form sub-contracts to take account of the changes made to the MW 2016, particularly in relation to the payment provisions.

We will of course be on hand to assist with any amendments and ‘health checks’ required.  Further the JCT is set to release more contracts later in the year, including a new D&B 2016 suite.  Please contact us if you would like to register your interest for training on the changes to that suit of documents.

If we can assist you in any way, or if you simply want to discuss the needs of your construction and engineering project, we would be delighted to meet with you either in our office or at your office to discuss your issues. Please contact us at any time.