JCT 24 Subcontracts: 10 Key Contractor Amendments That Could Hurt YOUR Bottom Line

In episode 107 of The Subcontractors Blueprint podcast, host Jacob Austin reviews the key changes in JCT 2024 subcontracts, noting that while the update brings improvements like good faith duties and digital notices, main contractors are amending terms in ways that often increase subcontractor risk. He highlights areas such as stricter notice procedures, shorter extension of time windows, creeping design obligations, and tweaks to payment, damages, and design related roles. Jacob urges subcontractors to watch for hidden risks in amendments, ensure compliance, and keep thorough records to protect their interests under the new JCT 24 framework.

KEY TAKEAWAYS:

•  JCT 2024 is an evolutionary update, adding good faith duties and enabling email/e-signing for notices.


•  Main contractors are amending subcontracts in ways that often increase risk for subcontractors.


•  Tighter extension of time timescales mean subcontractors must keep excellent records and respond quickly.


•  Watch for “fitness for purpose” design obligations sneaking in, as they can invalidate PI insurance.


•  Liquidated damages and payment terms are being tweaked, so review caps and compliance with the Construction Act.


•  Some amendments try to shift building safety duty holder roles onto subcontractors, raising compliance risk.

BEST MOMENTS:

"The introduction of a spirit of trust and respect doesn't mean you shouldn't respectfully gather your records and submit notices when you need to."

"If it's not a valid notice, you probably lose the claim."

"Any whiff of fitness for purpose can strip out the validity of your PI insurance, especially with fire and cladding exclusions."

"This is your opportunity to have a sensible conversation with the contractor about what they should be able to deduct from you if you get things wrong."

"The standard form might be the pitch. The schedules of amendments are where someone quietly moves the goalposts, narrows the crossbar and increases the size of the goalkeeper's hands."

Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.

HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

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