By David Brown, Partner, Construction
The themes to the changes are modernising and streamlining, legislative changes (including the Building Safety Act 2022 and Corporate Insolvency and Governance Act 2020) and future proofing measures.
The method of service of notices now allows through the Contract Particulars as an option service by email, and there is also an e-signature platform provision.
There are a number of changes in relation to dispute resolution, including putting collaborative working up front as a new Article 3, so that it is no longer optional. The obligation to work together in good faith arguably goes further than NEC (New Engineering Contract). In addition, there is a new clause 9.1 to provide for a ‘senior executives’ process. This is a common clause in bespoke contracts. There is no time bound process and the statutory right to go to Adjudication will not be affected.
There have been amendments to make the contract more in line with the Construction Act in relation to terminated Works completed by others and a clause which sets out the termination payment process.
In relation to loss and expense, Relevant Events have been expanded so that there is now ‘antiquities’ and ‘epidemics’.
There is more emphasis on quality and standards, with enhanced reasonable skill and care for design and more emphasis on measuring quality.
Sustainability has been brought more into the main part of the Contract.
Extension of time claims have changed, so that the Employer can request - within 14 days of receipt of a notice from the Contractor of a delay to progress - any further information. In addition, the period by which the Employer must notify the Contractor of its decision on whether an extension of time will be granted in respect of a Relevant Event has been shortened from 12 weeks to eight weeks.
This is just a summary of some of the changes and it would be sensible for all users of the Contract to familiarise themselves with the changes.
If you would like to discuss this further, please do not hesitate to contact Construction Partner, David Brown, email: dcb@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
