Contract Terms Guidance Updated

Following the release of the first JCT 2024 contracts, which include a number of changes in response to our recommendation on contract terms, Build UK has updated its guidance on implementing the recommendation when using JCT contracts. The changes, which will help to support a fairer allocation of risk through the supply chain, include:

• Fitness for Purpose ‐ A new clause containing an express exclusion for fitness for purpose, making it clear that in undertaking the design, the contractor will have no duty beyond reasonable skill and care, and will not be subject to any fitness for purpose obligation in respect of its design
• Unquantifiable Risks ‐ The range of events giving rise to an extension of time and/or loss and expense has been extended to include asbestos, contaminated material and unexploded ordnance, in addition to antiquities, allowing the parties to agree a share of the risk in the event of such conditions
• Uncapped Liabilities ‐ A new footnote highlighting that the parties may wish to agree a cap on liability, with model clauses now included in the Guide.

The business environment remains challenging, and our recommendation identifies six contract terms that should be avoided in order to promote collaboration and realise better project outcomes. The updated guidance is designed to help implement the recommendation by explaining why each term should be avoided and setting out ways to manage the underlying issues in a more collaborative way, with specific guidance for both JCT and NEC contracts. The recommendation is non‐binding and Build UK members are free to negotiate their own contractual terms

Government Focus on UK Recruitment

In a Written Ministerial Statement to Parliament, Home Secretary Yvette Cooper has set out plans to reduce net migration in favour of sectors “sourc[ing] the skills they need here at home”. Promising a new approach that “links migration policy and visa controls to skills and labour market policies”, she has commissioned the Migration Advisory Committee (MAC) to review the reliance of key sectors on international recruitment, starting with engineering and IT, which have consistently been on the list of shortage occupations for over a decade. The Government will keep a number of changes introduced by the previous Government, including maintaining the salary threshold for Skilled Worker Visas at £38,700 and scrapping the 20% going rate discount for overseas workers in shortage occupations.

Build UK’s flowchart provides an overview of the process of employing a worker from outside the UK in construction, with detailed guidance on How to Get a Sponsor Licence and How to Apply for a Skilled Worker Visa.

NHIC Consumer Guides

Working in partnership with the CLC, the National Home Improvement Council (NHIC) has published a suite of free consumer guides for homeowners undertaking home improvement projects. The ‘Doorstep Digests’ cover a range of works, with independent expert advice that is easy to understand for both homeowners and tradespeople.