JCT: D&B contract Fluctuations if not filled in and default option applies and a tax or levy is reduced can the Employer claim the saving?

In today’s webinar it was mentioned that if no position is included in the contract particulars with regard to fluctuations then option B becomes the default position. In this case if a tax or levy was reduced by the government would the contractor have to pass on the saving to the employer?


I think that under the JCT 2016 DB Contract the default position is that JCT Fluctuations Option A applies. That is when the entry for these in the Contract Particulars has not been completed. Option A is set out at Schedule 7 and whilst not in the Contract Options B and C are published by the JCT and in theory could be used.

Schedule 7/Option A makes it clear that there can be additions to and deductions from the Contract Sum as a result of operating Paragraphs A.1.2; A.1.6; A.2.2 and A.3.2 and that in theory could lead to a reduction in the Contract Sum. Thus is a tax or levy was reduced the Employer could look to make savings.