30.01.2014

New NZS Construction Contracts

For ten years NZS 3910:2003 was the form of construction contract most commonly used in New Zealand.  However, following industry feedback, NZS 3910:2003 has now been superseded by three new building and civil engineering contracts:

  • NZS 3910:2013 – Construction (Construction contract)
  • NZS 3916:2013 – Design and Construct (D&C contract)
  • NZS 3917:2013 – Fixed Term (Fixed Term contract)

The last in this trilogy became available on 28 January 2014, while the others were published in October 2013.

The splitting of NZS 3910:2003 into three separate standards provides more tailored general conditions for the different types of contracts and procurement arrangements that feature in the New Zealand construction sector.  Their publication follows feedback from the industry and lessons learned from NZS 3910:2003.

The new standards are easier to follow, contain new guidelines (that no longer have contractual status), have a more comprehensive tick-box type table for the Special Conditions, and include additional standard form documents (to save parties developing their own).   They also introduce some new terminology.

Among the substantive changes, the payment system has been simplified and contains different time periods, the method of calculating the price in cost reimbursement contracts has been set out more clearly and there is greater certainty about responsibility for arranging insurance and paying the deductibles.  The conditions are aligned with the Construction Contracts Act 2002 (as amended to date).

Standards New Zealand says the new contracts “reflect a fair risk allocation between the parties”.  While some parties will want to re-allocate risk in different ways for certain projects, overall, the need for Special Conditions should be significantly reduced.

These contracts are likely to become the default choice for most construction projects of any significance in New Zealand.  And their publication is timely given the anticipated spike in construction activity over the next decade.  Construction and engineering firms, and particularly those responsible for contract negotiations, should familiarise themselves with the changes.

Please click on pdf for a more detailed discussion of the key features of each new standard:[1]

For more information, or to discuss any aspect of construction law, please contact:

Nick Gilliesnick.gillies@heskethhenry.co.nz or +64 9 375 8767

Christina Bryantchristina.bryant@heskethhenry.co.nz or +64 9 375 8789

or other members of the Hesketh Henry Construction Law Team

 


[1] Unless otherwise stated, capitalised terms are defined terms in the applicable standard.
Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Money stack black and white
Income is classified as relationship property – surprised?
For all couples, embarking on the journey of building a life together involves not only love and commitment but also financial considerations.  As you navigate through shared finances, it’s imp...
26.03.2024 Posted in Private Wealth
Forestry Unsplash ruben hanssen wl ylTCM
Forestry: Regulatory Roundup March 2024
The challenging economic environment for New Zealand’s forestry industry continues, with China’s demand for our logs remaining subdued. Moreover, in addition to the change in Government, t...
25.03.2024 Posted in Forestry & Property
solar
OIO Spotlight: Solar projects, exempted interests and farmland considerations
As New Zealand renewable energy developments continue to attract interest from global investors, we take a look at some recent approaches of the Overseas Investment Office in assessing consent require...
BCC Trade Credit v Thera Agri Capital: Policyholder Successful Against Credit Insurer in Australian Court of Appeal Decision
When applying for trade credit insurance, a prospective insured will typically provide information on the financing arrangements that will form the basis of cover. Where there is deviation from these ...
05.03.2024 Posted in Insurance & Trade and Transport
iStock
Parker v Magnum Hire: A new era of personal grievance remedies awarded in the Employment Relations Authority?
If you heard a sudden loud noise last week – no it wasn’t a jet plane flying overhead, it was the gasp of employment lawyers across New Zealand when the Employment Relations Authority published it...
26.02.2024 Posted in Employment
employment dictionary website
Banding together: the Court’s new approach to awards for injury to feelings
One of the key remedies available to an employee who has successfully established a personal grievance in the Employment Relations Authority (Authority) or the Employment Court (Court) is compensation...
23.02.2024 Posted in Employment
Trust liability under the Health and Safety at Work Act
WorkSafe New Zealand v RH & JY Trust & ors
21.02.2024 Posted in Health & Safety & Private Wealth
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.