Attend our free upcoming webinar on New Zealand’s most commonly used construction contract if you’d like help navigating important changes that were released late last year.
Known as NZS 3910:2023, the revised construction contract was released following an extensive review to ensure it was fit for purpose, fairly allocates risk and reduces the use of special conditions.
Tailored to developers, principals, contractors and consultants, our free webinar is being held on 8 May from 12 noon to 1pm. Click here to register.
The refreshed construction contract was finalised following wide-ranging consultation which attracted more than 2,000 submissions.
Senior Associate Jackie Frampton will cover key changes to the contract, including:
- Engineer to the Contract – divided into two new roles:
- Previously, the Engineer to the Contract was required to wear two hats, however this position has now been split into two separate roles to try and address any actual or perceived bias.
- The new roles are Contract Administrator – who acts as the Principal’s agent, and Independent Certifier – who is independent of parties when making such things as determinations.
- Time will tell whether this change improves satisfaction with contract decision-making.
- Target Price Option:
- This is a new option for structuring the contract price.
- The idea is that parties work together to manage costs and share the benefit of savings, or burden of cost overruns.
- Limitation of Liability/ Fault-based Indemnity:
- The Contractor’s indemnity is now fault- based.
- In addition, optional limitations of liability have been added so the maximum aggregate liability of the Contractor can be limited in the Specific Conditions.
- Disputes:
- The dispute resolution process has been simplified and parties must endeavour to negotiate any dispute between themselves before progressing to mediation or arbitration.
- Final Account and Final Certification:
- A new provision dealing with the Final Account and Final Certification has been added.
- The parties will try and agree the Final Account or, alternatively, the Independent Certifier will make a decision. The final payment claim is then submitted.
WEBINAR KEY DETAILS:
- When: 12 noon – 1pm, Wednesday 8 May
- Register: Click here
