Here’s what you need to know about the new elements to the 2016 suite of Standard Form Contracts.
At this year’s annual Scottish Building Contract Committee (SBCC) Conference on 9 November, the SBCC confirmed the launch of the new suite of Minor Works (MW) contracts.
The SBCC’s job is to “kilt” appropriate contracts drafted south of the border by the Joint Contracts Tribunal (JCT) to bring them in line with Scots Law and practice.
When it comes to MW contracts, there are four major differences between the SBCC and JCT versions. In the SBCC versions:
- We have the insertion of a Named Specialist option in both MWs and MWs with Design versions. The option is exercised in the Contract Particulars with the detailed provision set out in the Supplementary Provisions in Schedule Part 3. The Named Specialist will use the SBCC Short Form of Sub-Contract.
- Arbitration is now the default position for disputes rather than the previous position of litigation.
- The procurement regime and wording relating to 30-day payment is different in terms of the Procurement Reform (Scotland) Act 2014 (referred to as the Procurement (Scotland) Act) and the Public Contracts (Scotland) Regulations 2015 (referred to as the PC (Scotland) Regulations).
- The insolvency provisions have been expanded to make them more user-friendly.
The 2016 contracts also feature the new pro forma signing arrangements, which come with guidance on how to complete them.
In addition to the differences mentioned above, the key changes within the drafting itself are around the new payment regime. Provisions around interim payments, payments due prior to practical completion and payments due on or after practical completion have all been updated, as have insurance provisions.
The JCT has released a new Building Information Modelling (BIM) Practice Note. SBCC have also published a new Public Sector Supplement to implement the Fair Payment Charter for public sector clients.
Finally, the suite of Collateral Warranties has been updated. Please visit SBCC for further information.
We’ll keep you posted on any legal changes taking place in future, including:
- The Design and Build suite of documents
- Standard Building Contract suite of documents
- Project Bank Account documents