JCT 2024 contracts—good faith in practice
Construction analysis: In this Insight, Shy Jackson considers the scope and implications of the parties’ obligation to work together in good faith under the Joint Contracts Tribunal (JCT) 2024 contracts.
This subtopic concentrates on the construction aspects of energy projects. See Practice Note: Introduction to UK energy projects for construction lawyers.
For detailed information on energy projects more generally, see the Energy Practice Area.
There are three main procurement routes used in UK energy projects:
EPC
split EPC
multi-party EPC
The EPC contract is the most common method of procurement for UK energy, large-scale and complex infrastructure projects. Under an EPC contract the contractor is responsible for the delivery of the total project including the design, engineering, procurement of the materials, construction and testing of the mechanical elements. See: EPC contracts—overview.
A split EPC contract, as the name suggests, means that the employer splits the EPC into two or more separate contracts. The separate contracts will be for different types of works, for example a supply contract and an installation contract. In some circumstances, one contract is placed on-shore and one off-shore to make use of differing tax treatment.
Multi-party contracts are different to EPC contracts in that they involve a number of contractors dealing with separate elements
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