Standards New Zealand is currently undertaking a review of NZS3910:1998 Conditions of Contract for Building and Civil Engineering Construction.
The review has been sparked by industry concern mainly surrounding the difficulties in obtaining insurance and the insurance certificates in accordance with the Conditions of Contract as they currently stand.
A draft revised standard has now been produced dealing with the insurance difficulties and many other minor corrections and improvements.
Some areas which have been addressed by amendment are:
the risks and responsibilities for contractor’s design in a projectthe inclusion of quality assurance processesa change to the function of the mediatorthe period for the engineer to issue a progress payment certificate has been reduced from 10 working days to 7. Provision has also been made for the release of part of the retentions where the completion of defects remedy is delayed, provided the cost to the Principal of making good those defects is covered by the remaining retentionsa new optional Appendix D has been added where the contractor is responsible for obtaining project information memoranda, building consents and code compliance certificates under the Building Act with some additional conditions governing producer statements.Standards New Zealand has also produced a draft standard Conditions of Contract which provides a contract for design and construction for a ‘greenfields’ project.
Both draft standards are available free of charge from Standards New Zealand website (www.standards.co.nz) and public submissions are invited.
Submissions close on 31 July 2002.
Phillips Fox intends to make submissions on both standards and would welcome your ideas and input. Should you wish to make submissions on your own behalf and we can assist you in any way please contact Paul Westbury,
Paula Nicolaou or Susan Hesp.
This article is intended as a first point of reference and should not be relied on as a substitute for professional advice. Specialist legal advice should always be sought in relation to any particular circumstances and no liability will be accepted for any losses incurred by those relying solely on this article.
Copyright Phillips Fox, 2002
For more details, Susan Hesp, solicitor:
susan.hesp@phillipsfox.com
Web site:
Phillips Fox