JCT DB 2024: Notable changes impacting dispute resolution

With the introduction of the JCT Design and Build 2024, we have seen material changes to the dispute resolution provisions which have an impact on how parties approach resolving disputes.

JCT Design and Build 2024 has introduced obligations for parties to work collaboratively and to notify and negotiate disputes as a contract condition. These were previously optional supplemental conditions in JCT Design and Build 2016 but are now included within the main body of JCT Design and Build 2024. The aim of these changes are:

• To encourage collaborative working and ensure the parties are working in a manner which reflects good faith, trust and respect. Not only does JCT Design and Build 2024 encourage collaborative working but it also goes so far to foster a long-term working relationship by incorporating an obligation to address supportive, collaborative behaviour and address non-collaborative behaviour. 
• In building on JCT Design and Build 2024’s theme for parties to collaborate and act in good faith, there is an obligation on the parties to notify each other promptly of any matter that appears likely to give rise to a dispute and thereafter arrange that senior executives meet as soon as practicable for “direct, good faith negotiations to resolve the matter”. This seeks to encourage avoidance or early resolution of disputes. 

These changes reflect a shift in the industry in encouraging early warning of disputes, perhaps moving in this respect, more to the NEC model, and to settle disputes amicably and collaboratively, with changes in relation to:

• parties having the option to specify their own adjudicator/arbitrator nominating body (as an alternative to selecting in the list set out in the contract); 
• the streamlining of timetables and procedures to deal with extensions of time;
• the introduction of new Relevant Events and Relevant Matters; and 
• changes to liquidated damages and termination provisions. 

Whilst JCT 2024 introduces positive developments, a considerable effort is required from those in the industry to implemented and achieve these principles.

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