This ebook from the Joint Contracts Tribunal explores some of the key issues affecting contractual issues in the construction industry against the backdrop of Covid-19 and the need to tackle the “performance gap” in buildings
JCT chairman Richard Saxon CBE examines the issue of whether construction contracts will need to evolve from their current purpose, of managing a capital project on budget, on time and without defects, to reflect the growing importance of whole life costs and reducing carbon emissions to both clients and wider society.
Richard argues that contracts will inevitably have to adapt to recognise the need to not only address the performance gap, but also to publish the data proving it, broadening the list of outputs that are demanded and assessing penalties for failure.
The notion of building completion will also evolve, moving into the in-use period to prove performance once topping-out has taken place.
Elsewhere, Peter Hibberd, past-chair of the JCT, looks at the impact of Covid-19, and the government’s response to the pandemic, on construction contracts.
He discusses Site Operating Procedures that contractors must follow, as well as what needs to be considered if a site has to shut down.
JCT contracts make provisions for dealing with situations that may require extensions of time, suspension of work or termination of a contractor’s employment.
Finally, there is a look at JCT Construct, the new digital service that allows subscribers to edit JCT contract to add their own amendments, clauses or other customised text.
The service also supports guest sharing to allow collaborative working among those drafting a contract, with version-to-version comparison to ensure transparency and track changes.