The Joint Contracts Tribunal (JCT) Design and Build Contract is a widely used standard form of contract in the construction industry. The JCT has recently released an updated version of this contract, the JCT Design and Build Contract 2016, which includes several key variations from the previous version.

One of the most significant changes in the JCT Design and Build Contract 2016 is the introduction of a new payment mechanism. This mechanism, known as the Payment Notice Procedure, requires the contractor to submit a payment application to the employer in writing, which triggers a payment notice from the employer. The contractor then has the opportunity to challenge this notice if they believe it is incorrect.

Another important variation in the JCT Design and Build Contract 2016 is the inclusion of provisions related to Building Information Modelling (BIM). This reflects the growing importance of BIM in the construction industry, and requires the contractor to produce a BIM model and follow BIM protocols.

The JCT Design and Build Contract 2016 also contains changes related to insurance and indemnity provisions. The new contract includes provisions for joint names insurance, which means that both the employer and the contractor are named as policyholders in the insurance policy. This is designed to provide greater clarity and certainty around insurance arrangements.

There are also changes to the provisions around termination, with the JCT Design and Build Contract 2016 introducing an option for either party to terminate the contract if the other party becomes insolvent. This provides greater protection for both the employer and the contractor in the event of financial difficulties.

Overall, the JCT Design and Build Contract 2016 is an important update to one of the most commonly used standard forms of contract in the construction industry. The new contract includes several key variations that reflect changes in industry practice and provide greater clarity and certainty around contractual arrangements. Contractors, employers, and other stakeholders in the construction industry should take note of these changes and ensure that they are familiar with the updated contract.