The latest revision to the JCT contracts is a step in the right direction, but doesn’t go far enough to enforce the OGC’s Achieving Excellence in Construction aims

The JCT has recently published a second revision to most of its 2005 suite of contracts. One aim of the latest changes is to address the principles adopted by the Office of Government Commerce (OGC) in the Achieving Excellence in Construction (AEC) initiative.

The goal of the AEC initiative is to increase efficiency, effectiveness and value for money in public procurement. We therefore see in revision two, among other things, the introduction of collaborative working, key performance indicators (KPIs) and the acceleration provisions that are found in the OGC-endorsed NEC3 contract.

Revision two addresses these and other principles through new supplemental provisions. These are the often overlooked optional clauses at the back of JCT contracts. There are seven new provisions covering acceleration, collaborative working, health and safety, cost savings and value improvement, sustainable development and environmental considerations, performance indicators and monitoring and notification and the negotiation of disputes.

Although these provisions are optional, there is a presumption that they will apply. However, one of the great improvements in revision two contracts is that the contract particulars ask you to state whether each individual supplemental provision is to apply, where previously the parties stated whether the supplemental provisions were to apply or not on a blanket basis.

All this sounds good so far. Where the new supplemental provisions fall down, however, is in their drafting. Although the aims of the JCT are laudable, the drafting lacks contractual teeth, so employers and contractors will need to beef up the provisions.

The cost savings and value improvemen