Drafting row threatens JCT survival

Reform of the building industry's Joint Contracts Tribunal and the continued survival of the JCT as a body producing standard forms of contract have been thrown into jeopardy by a seemingly intractable row over the redrafting of contract documents in line with the recommendations of the Latham report.

'We have now reached a very, very serious situation,' a leading industry player said this week. 'We have reached an impasse. And, unless we can find an answer, it bodes ill for plans to restructure the JCT and, indeed, for its very existence.'

The Latham report recommends that the JCT should be reconstituted on the basis of four 'colleges' representing clients, the professions, main contractors, and specialists. No college would have the right of veto on contracts to which they were not party. The colleges would be required to draw up a set of fully interlocking contract documents.

Concern over the Latham plan follows a letter from JCT chairman, Roger Squire, to parties to the tribunal in which he reports a breakdown of talks.

The split is said to have occurred because the Building Employers Confederation is insisting that it should be allowed to go ahead and conclude a revised main contract document irrespective of progress on associated subcontracts.

Specialists are arguing that this in practice adds up to a veto on conditions of the subcontract.

Sir Michael has volunteered to mediate in the row. But, although the BEC has accepted his offer, it is not prepared to agree to binding arbitration.