JCT 2016: What Changed in the Minor Works Contract

by | Sep 15, 2016 | Contract Administration and Major Works

If you are commissioning a smaller building project, such as a refurbishment, an extension or a programme of repairs, the contract you sign matters as much as the drawings. At the end of June 2016 the Joint Contracts Tribunal released the Minor Works Building Contract 2016, together with the version with contractor’s design. They were the first of the new 2016 suite, and they became the natural choice for new smaller projects.

The main changes

  • Payment. Interim valuation dates are now set out in the contract particulars, monthly by default, with payment due seven days after each one. The contractor may make an application stating the sum it considers due, and payments continue on the same monthly cycle after practical completion until final payment.
  • CDM 2015. The contract now refers to the Construction (Design and Management) Regulations 2015 and to the principal designer.
  • Insurance. Where an employer is a tenant, insurance of the works and existing structures can be arranged by other means, such as through a landlord’s policy. Serious damage to an existing structure can, in some circumstances, give a right to end the contract where reinstatement is not pursued.
  • Consents. Where a consent is needed, it is not to be unreasonably delayed or withheld, subject to exceptions.
  • Oral instructions. The strict two day deadline for confirming them in writing has gone, though written confirmation is still required.
  • Public sector clients now have provisions reflecting the Public Contracts Regulations 2015 and freedom of information requirements.

What it means for owners

The changes are evolutionary rather than radical, and the balance of risk is broadly the same as before. The payment changes are the ones you will notice. The timetable is fixed by the dates in the contract, so the contract administrator and the employer must keep to it. Missing a notice can mean paying the sum the contractor applied for.

Before you sign

  1. Complete the contract particulars carefully, especially the valuation dates and the rectification period.
  2. Decide how the works and the existing building will be insured.
  3. Make sure whoever administers the contract understands the payment timetable.

Our Contract Administration service prepares and runs JCT contracts for smaller and larger projects. See how we handled structural repairs to an occupied period house.