New JCT Target Cost Contract
In June, the JCT issued a new contract in the form of a 'mini' family of documents collectively known as the Target Cost Contract (abbreviated to TCC 2024 in JCT language). The new form is specifically designed to promote cost transparency on projects by sharing the financial risks between the parties. It introduces a pain/gain mechanism through which both savings and overruns against a pre-agreed Target Cost are shared between the parties.
The TCC comes as a family of documents:
- Target Cost Contract 2024 (TCC 2024)
- Target Cost Sub-Contract Agreement 2024 (TCCSub/A 2024)
- Target Cost Sub-Contract Conditions 2024 (TCCSub/C 2024)
- Target Cost Contract Guide 2024 (TCC/G 2024)
- Target Cost Sub-Contract Guide 2024 (TCC Sub/G 2024)
The suite is labelled '2024' even though it makes its debut in 2025.
The main building contract is based on the JCT Design and Build Contract 2024. The sub-contract is split, in the usual JCT manner, into an Agreement and a separate accompanying set of Conditions.
For more information on the new contract: Introducing the JCT Target Cost Contract (TCC) – the final contract to be published in the JCT's 2024 suite of building contracts.
Reminder – The JCT will withdraw its 2016 edition of contracts in 2026
The JCT has now completed the launch of its 2024 suite of contracts. Contract users are able to access contracts from both the JCT 2016 and 2024 editions until April 2026 following which the 2016 edition will be withdrawn and will no longer be available to purchase either in hardcopy or digital format.
The Building Safety Levy
In July, The Ministry of Housing, Communities and Local Government published guidance on the operation of the Building Safety Levy (BSL) and The Building Safety Levy (England) Regulations 2025 (in draft form) which remain subject to Parliamentary approval and which will come into operation on 1 October 2026 and apply in England only.
For more information: Building Safety Levy update.
New UK Infrastructure Strategy
In June, the government published "UK Infrastructure: A 10 Year Strategy", its new strategy for the planning and delivery of infrastructure projects over the next decade.
For more information on this important new strategy: New Infrastructure Strategy: what’s in it for Construction?
Construction skills across the UK – Plugging the gap
Recent reports state that the UK construction industry needs to recruit close to 250,000 extra workers over the next five years. For more information on this subject: Spending Review 2025 – what next for the construction skills gap?
Consultation: Reformed Decent Homes Standard (DHS) for Social and Privately Rented Homes
In July, The Ministry of Housing, Communities and Local Government launched a consultation on a reformed DHS for social and privately rented homes. The consultation aims to update the DHS which presently only applies to social housing, and it ends on 10 September.
For more information about the consultation: Consultation: Reformed Decent Homes Standard for Social and Privately Rented Homes.
The new failure to prevent fraud offence (FTPF) under The Economic Crime and Corporate Transparency Act 2023 (ECCTA)
The introduction of the failure to prevent fraud offence under ECCTA marks a significant shift in how organisations, including charities, are held accountable for fraud which takes place within the organisation.
The clock is ticking: the offence comes into force on 1 September 2025.
For more information about the new offence: The Countdown is on – Are you ready? The new Failure to Prevent Fraud Offence comes into force on 1 September 2025.
Building safety disputes: the Court of Appeal in Triathlon Homes v Stratford Village Development Partnership (2025) and Adriatic Land 5 Ltd v Leaseholders of Hippersley Point (2025)
In two separate judgments handed down in July, the Court of Appeal dismissed both appeals and, in doing so, ruled that the leaseholder protection provisions contained in Schedule 8 to the Building Safety Act 2022 have retrospective effect.
For more information about the Court of Appeal's decisions: Court of Appeal confirms the retrospective reach of the Building Safety Act.
