In the lead up to the festive season, we’ve been unwrapping the JCT Design & Build Contract 2024 to see what’s inside and putting our contract knowledge to the test. To make contract know-how a little more fun, we’ve turned this into a challenge. 

Here is how it works. Below are 10 statements. You decide whether it is a genuine clause from JCT D&B 2024 (Construction Clause) or a festive fib (Santa Claus). Answers are at the bottom of the page! Good luck!

1. The Employer can instruct a change that alters the design without the Contractor’s Consent
2. The Contractor must notify the Employer of any delay event within 14 days of becoming aware of it, or lose entitlement to an Extension of Time
3. The Contractor shall take all reasonable steps to encourage his workforce to be registered cardholders under the Construction Skills Certification Scheme
4. The Contractor can suspend work for non-payment after giving a minimum 14 days’ notice of the default
5. If the Employer takes partial possession, the Rectification Period for that part starts immediately
6. The Contractor is entitled to claim loss and expense for a Force Majeure event
7. The Employer can choose to claim liquidated damages at any rate in the event of delay, as long as it does not exceed the amount in the Contract Particulars
8. If the Employer takes partial possession, the Contractor remains responsible for insuring the Works for that part until practical completion occurs
9. When the defects, shrinkages and other faults in the works have been made good, the Employer shall issue a “Certificate of Making Good”
10. The retention must always be placed in a separate bank account by the Employer. 

Keep scrolling for answers…….

Answers

1. SANTA CLAUS – FALSE! Clause 3.91 sets out that the Employer may not effect a Change which is, or which makes necessary, an alteration or modification in the design without the Contractor’s consent.
2. SANTA CLAUS - FALSE! Clause 2.24.1 states that the contractor shall give notice “forthwith”, but it is not a condition precedent.
3. CONSTRUCTION CLAUSE TRUE! Clause 2.2.6 states “the Contractor shall take all reasonable steps to encourage Contractor’s Persons to be registered cardholders under the CSCS or qualified under an equivalent recognised qualification scheme.
4. SANTA CLAUS - FALSE! The Contractor can suspend for non-payment, but the minimum notice period is 7 days, not 14! (clause 4.11.1)
5. CONSTRUCTION CLAUSE - TRUE! - Clause 2.31 sets out that the Rectification Period starts upon the Employer taking partial possession of a Relevant Part.
6. SANTA CLAUS - FALSE! Force Majeure is a Relevant Event (2.26.15) but not a Relevant Matter
7. CONSTRUCTION CLAUSE - TRUE! Clause 2.29.2 states that the Employer can require the Contractor to pay liquidated damages at the rate stated in the Contract Particulars, or a lesser rate
8. SANTA CLAUS - FALSE! Clause 2.33 states that the Works insurance obligation ceases for the Relevant Part from the Relevant Date.
9. SANTA CLAUS - FALSE! It is not a “Certificate of Making Good” in the JCT D&B 2024, it is a “Notice of Completion of Making Good” (clause 2.36).
10. SANTA CLAUS - FALSE! Clause 4.16.2 The retention only has to be placed in a separate account if requested by the Contractor and the Employer is not a public authority. 

How did you do? Whether you scored a perfect 10 or found a few surprises, if you need advice on navigating your construction contracts, please do get in touch with one of the team! Wishing you a Merry Christmas and a successful New Year!