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  However, following industry feedback, NZS 3910:2003 has now been superseded by three new building and civil engineering contracts: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

HH Pg  Forrest uncropped
ETS Update: Climate Change Commission recommends minor tweaks to ETS Settings
Last month, He Pou a Rangi Climate Change Commission (the Commission) released its annual advice to the Government on the Emissions Trading Scheme (ETS) settings for the period 2026 to 2030 (Advice)....
HS Scrabble Med Crop Vignette
Health and safety learnings for landowners following latest Whakaari decision
The leasing and subleasing of land, buildings and infrastructure is commonplace in New Zealand business and commerce, but what happens when something goes wrong? Do landowners have health and safety o...
08.05.2025 Posted in Health & Safety
Navigating Settlor Intentions in Trust Restructures – Legler v Formannoij [2024] NZSC 173
In Legler v Formannoij the surviving widow Marina Formannoij, was forced to navigate the complexities of two trusts that were part of her late husband Ricco Legler’s estate plan: the Kaahu Trust (wh...
08.05.2025 Posted in Private Wealth
Counting Costs in Arbitration: High Court Affirms Arbitrator’s Discretion on Costs Awards
Construction contracts often require parties to finally resolve disputes through arbitration rather than Court litigation.  One important difference between arbitration and the Courts is that arbitra...
07.05.2025 Posted in Construction & Disputes
Mediation wide BW
Employment Law’s Dispute Resolution Process – Employment Relations Authority and Employment Court
In our last article, we introduced the dispute resolution process in the employment jurisdiction by discussing mediation – specifically, what mediation is and what to expect. This article discusses ...
17.04.2025 Posted in Employment
You’ve Been Served: Navigating the Use of Statutory Demands
An Introduction to Statutory Demands: A statutory demand is a legal document that is issued by a creditor (Creditor) to a debtor company (Debtor) demanding payment of a debt that is due and owing.  T...
15.04.2025 Posted in Insolvency and Restructuring
iStock  Succession Plan medium
Passing the Torch: Priming your Family Business for a Succession
As the first in a series of articles looking at the generational wealth transition and its impacts on business succession in New Zealand, Ben Hickson (partner, Corporate & Commercial) and John Kir...
07.04.2025 Posted in Corporate & Commercial & 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.