The Joint Contracts Tribunal (JCT) has now published the Measured Term Contract 2024 (MTC 2024). 

This follows updates to many other contracts within the JCT suite which have been published periodically since April 2024, when we looked at the first contract in the suite to be updated, the Design and Build Contract.  

The amendments to the MTC 2024 mirror those across the rest of the JCT 2024 suite, the key ones to note are:

Collaborative working and environmental considerations

There is a new Article 3 ‘Collaborative Working’ which requires the Parties to ‘work with each other and with the other project team members in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect.’ 

This demonstrates the JCT's desire to reflect the Construction Playbook objectives by incorporating these changes into the main document (rather than through optional supplemental provisions as in the 2016 edition). There are also new provisions under clause 2 in relation to the contractor being encouraged to suggest economically viable amendments and the contractor providing information to the employer on the environmental impact of the supply and use of materials and goods. 

Building safety

JCT has made changes to reflect the new Part 2A of the Building Regulations 2010, introduced by the Building Regulations etc. (Amendment) (England) Regulations 2023 in relation to dutyholders under clause 3.9. There is a new Article 6 in relation to appointing a principal designer and principal contractor and amendments to the parties’ obligations, in line with their duties under the Building Regulations. Again, the updates include no provisions for works to Higher-Risk Buildings. Parties will need to add their own provisions if required, through a bespoke schedule of amendments. 

Modernising 

JCT has a new policy of adopting gender-neutral language, as well as modernising by providing for execution by way of electronic signatures and including an option that notices can now be served via email.

Disputes 

Mirroring the rest of the JCT suite, the previous supplemental provision ‘notification and negotiation of disputes’ is now a mandatory provision under clause 9 with names and contact details of nominees for each party to be inserted in the Contract Particulars so the parties can notify each other and seek to negotiate any disputes. 

Insolvency

The definition of insolvency at clause 8.1 has been widened, reflecting the new procedure under the Corporate Insolvency and Governance Act 2020 by including ‘a ‘Part A1 moratorium’ and ‘a ‘Part 26A restructuring plan’.

Termination – accounting and payment provisions

JCT has made changes in relation to termination payments in section 8 (final date, notices and amount) to remove any doubt as to whether the contract processes are compliant with the Housing Grants, Construction and Regeneration Act 1996 (the Construction Act).

If readers have reviewed any of the other contracts within the new 2024 suite, then these amendments in the MTC 2024 will come as no surprise. Where the changes do follow a different approach to that used in other contracts in the JCT suite (such as the Design and Build Contract), this is reflective of the different overall approach in the MTC contract in some areas. For example, there are no new Relevant Events in the MTC contract because the MTC deals with extensions of time simply for ‘matters beyond the Contractor’s control’ rather than by reference to a defined list of Relevant Events.   

JCT has stated they do not believe that any of the 2024 edition amendments materially affect risk allocation in the unamended JCT contract and the MTC 2024 is no different. Users will still need to carefully consider how/if these updates align with any existing schedules of amendments which they are using and consider further amendments as necessary. 

Procurement Act 2023

Finally, readers will note that yet more change is on the horizon. The Procurement Act 2023 is now expected to come into force on 24/02/2025. For contracts procured under the new regime, there are a number of other new requirements which need to be reflected in the contract terms.  These include obligations with respect to setting, monitoring and publishing KPIs. For contracts with existing KPI mechanisms, it will be important to check that these are compatible with the new requirements and to develop the provisions to align fully with all PA 23 requirements. 

Please get in touch if you require advice regarding amendments for the MTC 2024 (or if you need your previous JCT MTC 2016 schedule of amendments updated in line with the new form of contract).