JCT TIGHTENS TERROR TERMS OF CONTRACTS

From: The Joint Contracts Tribunal
Published: Mon Feb 01 2010


Terrorism provisions within JCT contracts have been amended. JCT (the Joint Contracts Tribunal) has issued an update to its standard forms of contract to rationalise a contractor’s liability for loss or damage on the project resulting from an act of terrorism.

The passing of the Terrorism Act 2000 has led to a gap emerging between risks excluded from insurance policies and risks covered by Pool Reinsurance (Pool Re). Pool Re is the default cover on a project where no terrorism insurance is specified – Pool Re is the insurer of the last resort, underwritten by the Treasury. Possible difficulties in complying with the requirements of its insurance Options A, B and C had previously been highlighted by JCT and the purpose of this update is to avoid them.

The terrorism cover update containing the revised provisions and the associated guidance notes is available from www.jctltd.co.uk or www.jctcontracts.com. The changes will be incorporated when the contracts affected – Standard Building Contract, Design and Build Contract, Management Building Contract, Prime Cost Building Contract, Intermediate Building Contract and Measured Term Contract – are republished in 2011.

----- Ends -----

Distributed on behalf of JCT by Chelgate Limited.

Notes to editors:

• The Joint Contracts Tribunal was established in 1931 and has for 79 years produced standard forms of contracts, guidance notes and other standard documentation for use in the construction industry.
• The Joint Contracts Tribunal is an independent organisation representing all parts of the construction industry and is the leading provider of standard forms of building contract. Members include: British Property Federation Limited, Construction Confederation, Local Government Association, National Specialist Contractors Council Limited, Royal Institute of British Architects, The Royal Institution of Chartered Surveyors and the Scottish Building Contract Committee Limited.
• Further information about JCT can be found on the website www.jctltd.co.uk.
• Various spokespersons at JCT are prepared to comment upon general news and issues relating to contracts and contractual relationships. However, it may not be possible to comment upon specific disputes and contracts. Please contact Michael Hardware below.

For further information, please contact:

Michael Hardware, Chelgate PR, 020 7939 7989 or 07775 925 274 or
meh@chelgate.com
Company: The Joint Contracts Tribunal
Contact Name: Michael Hardware, Chelgate PR
Contact Email: meh@chelgate.com
Contact Phone: 020 7939 7989 or 07775 925 274

Visit website »