scope:

FOREWORD

This revision of NZS 3910, Conditions of Contract for Building and Civil Engineering Construction, includes important changes that make it compatible with the Construction Contracts Act 2002. These changes ensure continuation of the dual role of the Engineer, both as expert adviser to, and representative of the Principal and also to impartially make decisions including valuing work and issuing certificates independently of either contracting party. The terminology of the Act has been followed resulting in the adoption of the terms 'payment claim' and 'payment schedule.' Changes have been made to Section 13, Disputes, that take account of the adjudication procedures set up in the Act.

The trigger for the development of the 2003 edition was the need for the insurance provisions to more closely reflect the realities of the insurance market in New Zealand. As well as changes to Schedules 7 and 8, new Schedules 9, 10 and 11 relating to insurance have also been added. These are now styled as 'information' forms rather than certificates and this, together with other wording changes, answers insurance industry concerns that the previous certificates could have the potential to alter the terms of insurance policies. Section 8, Insurance, has been re-ordered to group insurance provided by the Contractor and insurance provided by the Principal more logically and contains new optional provisions for Contractor's professional indemnity insurance.

The main aim has been to produce a straightforward flexible document which includes all essential commercial provisions and which may be used for all types of engineering and building work with a variety of administrative arrangements. Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with the Engineer's design. However, this form may also be suitable for contracts which include, or wholly comprise, works for which the Contractor has design responsibility. A new Appendix D, which can be invoked in the Special Conditions in appropriate instances, makes provision for the Contractor to obtain project information memoranda, building consents and code compliance certificates that are required under the Building Act.

NZS 3910:2003 builds on the experience gained in the use of its predecessors, NZS 3910:1998, NZMP 3911:1992, NZMP 3912:1992, NZMP 3914:1994 and NZS 3910:1987. These all derive from NZS 623P:1984 which in turn was preceded by NZS 623:1964.

Continuing the precedent established when the 1998 edition was published, NZS 3910:2003 will be made available only in a complete form and not in electronic format that is able to be edited or changed. A major advantage of using standard conditions of contract is that its provisions are well known and understood. It does not need to be searched for project specific changes buried within, every time a tender is priced or construction is being managed. Project specific conditions including amendments to the General Conditions of Contract should be clearly visible and be in the Special Conditions of Contract.