Setting the Standard for contract conditions

NZS 3910: Conditions of contract for building and civil engineering construction

Contracts that are easy to understand, are complete, and allow for collaboration and contingencies such as dispute resolution are critical in today’s highly competitive and technical building and infrastructure environment. That’s why New Zealand’s building, construction, engineering, roading, and infrastructure industries rely on NZS 3910:2003 Conditions of contract for building and civil engineering construction to develop contracts that are suited to New Zealand’s industrial and legislative environment.

Developed by New Zealanders, for New Zealand

NZS 3910

Works for everyone involvedNZS 3910:

• is consistent with the requirements of the Construction Contracts Act 2002

• is supported by substantial case law

• accommodates multi-disciplinary contracts

• has extensive and modern dispute resolution procedures

• provides for well informed and experienced clients, contractors, and engineers to work collaboratively

• provides for clients to achieve project objectives with certainty

• provides for an independent engineer to be responsible for the administrative matters on behalf of the principal, while also acting independently to ensure fairness for the principal and the contractor.

NZS 3910 has been developed to meet the current and future needs of contractors, engineers, and principal representatives. It offers a form of contract that can be, and is, usedinalltypesofconstruction.NZS3910offersclarity,simplicity,flexibility,andfairness. It appropriately allocates risk to the party best able to accept the risk.

NZS

3910

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3910 Is fairFor fairness, NZS 3910:

• provides conditions of tendering known and accepted by the industry

• includes guidelines in the interpretation of some clauses

• containscostfluctuationprovisions

• provides a collection of schedules containing template contracts to cover all types of engineering and building work, information forms, and a selection of bond agreements to cover all parties.

NZS

3910 Is straightforward, practical,andflexibleForclarity,simplicity,andflexibility,NZS 3910:

• clearlydefinesrolesandresponsibilitiesofthe parties to the contract

• concisely describes variations that are permitted and includes other matters deemed to be variations

• has procedures supported by guidelines andflowcharts

• requires reasons for decisions

• is written in plain English

• includes all essential commercial provisions for complete and properly documented construction contracts

• allows for special conditions required to meetspecificrequirementsofanycontract

• allows for design on behalf of the principal or by the contractor

• provides for design and build (where the contractor is responsible for the design), road, local authority, and term maintenance contracts

• provides a choice of pricing mechanisms: lump sum, measure and value, and cost reimbursement

• allows for any combination of documents to become part of the contract

• allows and encourages dispute resolution by negotiation and collaboration with guidelines provided for resolving differences.

NZS

3910 Meets requirements of New Zealand legislationThe current edition accommodates and reflectstherequirementsoftheConstructionContracts Act 2002 (CCA), not covered by overseas standard forms of contract. The revisionofNZS 3910willremainconsistentwith the Building Act 2004.

NZS 3910 has stood the test of timeWritten to meet the requirements of clients, consultants, and contractors in the building and civil construction industry in New Zealand,NZS 3910 wasfirstpublishedin1984following a radical rewrite of the previous Standard NZS 623. NZS 3910 was developed, and is reviewed, collaboratively by industry peers (including clients, consultants, contractors, insurers, lawyers) and has undergone regular revisions.

What changes are expected in the updated Standard? Some changes and new features have been requested by users since the 2003 edition was published. The Standard is also being updated to align with changes to industry legislation, insurance requirements, and industry practices.

The new Standard will include the following.

• Alignment with legislative changes

• Updated insurance requirements building on knowledge gained from the Canterbury earthquakes

• Review of payment provisions and valuation of variations

• Development of programme and quality provisions

• Strengthening the provisions for Design and Construct and Cost Reimbursement contracts

• Addressing risk allocation within the contract

• Fair treatment for the Principal, Engineer, and Contractor

For more information about the revision of NZS 3910, read the February and future issues of Touchstone at www.standards.co.nz/touchstone and click on the ‘Building’ link.

Keep up to date with Standards in developmentStandards New Zealand publishes a free monthly e-zine, Touchstone, which has information on Standards in development, and new, revised, and amended documents.

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2012 – 2013 revision of NZS 3910 NZS 3910 is currently under revision to ensure it continues to meet the needs of New Zealand’s building and construction sector. The project began in 2011 and publication of the revised Standard is expected in early 2013.

As with all New Zealand Standards, the revised and improved Standard is being developed by an expert committee using a consensus-based approach. The process is transparent and includes a public comment period. This process ensures that our Standards solutions are practical and relevant in a New Zealand context, and that they will be widely recognised and supported.

June 2012