NZS 3915:2005 AMENDMENTS. No. Date of issue Description Entered by, and date

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2 NZS 3915:2005 COMMITTEE REPRESENTATION This Standard was prepared by Technical Committee P 3915 for the Standards Council established under the Standards Act Peter Fehl New Zealand Contractors Federation (Chair) Rob Cameron Property Council of New Zealand Peter Degerholm New Zealand Building Subcontractors Federation Peter Turner Registered Master Builders Federation of New Zealand ACKNOWLEDGEMENT Standards New Zealand gratefully acknowledges the contribution of time and expertise from all those involved in developing this Standard. COPYRIGHT The copyright of this document and the electronic copy supplied on CD is the property of the Standards Council. No part of it, except the Schedules numbered 1 to 13 and the Schedule to Conditions of Tendering, may be reproduced by photocopying or by any other means without the prior written approval of the Chief Executive of Standards New Zealand unless the circumstances are covered by Part III of the Copyright Act Standards New Zealand will vigorously defend the copyright in this Standard. Every person who breaches Standards New Zealand s copyright may be liable to a fine not exceeding $50,000 or to imprisonment for a term not to exceed three months. If there has been a flagrant breach of copyright, Standards New Zealand may also seek additional damages from the infringing party, in addition to obtaining injunctive relief and an account of profits. Published by Standards New Zealand, the trading arm of the Standards Council, Private Bag 2439, Wellington Telephone: (04) , Fax: (04) Website AMENDMENTS No. Date of issue Description Entered by, and date 2

3 NZS 3915:2005 NEW ZEALAND STANDARD CONDITIONS OF CONTRACT FOR BUILDING AND CIVIL ENGINEERING CONSTRUCTION (where no person is appointed to act as Engineer to the contract) ISBN

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5 NZS 3915:2005 CONTENTS CONTENTS PAGE Committee representation... IFC Acknowledgement... IFC Copyright... IFC Referenced documents... 7 Foreword... 8 Review of Standards... 8 GENERAL CONDITIONS OF CONTRACT Section 1 INTERPRETATION Application Definitions General Law, currency and language Computation of time THE CONTRACT Type of contract Lump sum contract Measure and value contract Cost reimbursement contract Road or term maintenance contracts Local authority contracts Evidence of contract Documents prepared by the Principal Documents prepared by the Contractor PERFORMANCE BONDS Contractor s bond Principal s bond SUBCONTRACTS General Nominated Subcontractors GENERAL OBLIGATIONS General responsibilities Contractor s representative Control of employees Possession of the Site Separate contractors Care of the works and Site Protection of Persons and property Setting out Materials, labour and Plant Programme Compliance with laws Patents and royalties Underground and above ground utilities Treasure Clearance of Site Late supply by Principal Quality management As-built drawings, operation and maintenance manuals Contents continued overleaf COPYRIGHT 3

6 CONTENTS NZS 3915: PRINCIPAL S REPRESENTATIVE AND OTHER PROVISIONS Appointment of Principal s Representative Inspection, recording, measuring and testing Removal and making good Certification Suspension of work Emergency work INDEMNITY Indemnity INSURANCE Contractor to insure Contract Works and Materials Contractor to insure Contractor s construction machinery Contractor to insure against public liability risks Professional indemnity insurance for Contractor s design Contractor s insurance General Principal s option to insure Contract Works and Materials Principal s option to insure public liability Principal s insurances General VARIATIONS Variations permitted Variation orders Valuation of Variations Daywork Unforeseen physical conditions TIME FOR COMPLETION Commencement Due Date for Completion Extension of time Certificate of Practical Completion Damages for late completion Bonus for early completion Occupancy by the Principal DEFECTS LIABILITY Period of Defects Liability Defects liability Defects Liability Certificate Effect of Defects Liability Certificate Guarantees PAYMENTS Contractor s payment claims Progress Payment Schedules Retention monies Final payment claim Final Payment Schedule Effect of Final Payment Schedule Interest Cost fluctuations Provisional Sums Prime Cost Sums Contingency sums Goods and services tax COPYRIGHT

7 NZS 3915:2005 CONTENTS 13 DISPUTES General Appointment and determination of Expert Mediation Arbitration Suspension during dispute Award of interest FRUSTRATION AND DEFAULT Frustration Default by the Contractor Default by the Principal SERVICE OF NOTICES General Appendix A COST FLUCTUATION ADJUSTMENT BY INDEXATION B CONSTRUCTION CONTRACTS IN PUBLIC ROADS B1 Interpretation B2 Principal s powers and responsibilities B3 Time for completion C TERM MAINTENANCE CONTRACTS (INCLUDING ROAD MAINTENANCE CONTRACTS) C1 Interpretation C2 General obligations C3 Underground and above ground utilities C4 Principal s powers and responsibilities C5 Time for completion C6 Defects liability C7 Payment D OBTAINING OF LICENCES BY THE CONTRACTOR SCHEDULES TO GENERAL CONDITIONS OF CONTRACT First Schedule Special Conditions of contract Part A Specific conditions of contract Part B Other conditions of contact Second Schedule Contract agreement Third Schedule Form of Contractor s performance bond Fourth Schedule Form of Principal s bond Fifth Schedule Form of Contractor s bond in lieu of retentions Sixth Schedule Form of producer statement Construction Seventh Schedule Information as to Contract Works insurance Eighth Schedule Information as to public liability insurance Ninth Schedule Information as to the Contractor s construction machinery insurance Tenth Schedule Information as to the Contractor s motor vehicle insurance Eleventh Schedule Information as to Contractor s professional indemnity insurance Twelfth Schedule Provisional Certificate of Practical Completion and certificate of Practical Completion Thirteenth Schedule Provisional Defects Liability Certificate and Defects Liability Certificate COPYRIGHT 5

8 CONTENTS NZS 3915:2005 CONDITIONS OF TENDERING Interpretation Issues of documents Tenderers to inform themselves Ambiguities in tender documents Submission of tenders Acceptance of tender Notification of acceptance SCHEDULE TO CONDITIONS OF TENDERING GUIDELINES Section G1 Interpretation G1.2 Definitions G5 General Obligations G5.10 Programme G6 Principal s Representative and other provisions G6.1 Appointment of Principal s Representative G6.2 Inspection, recording, measuring and testing G7 Indemnity G8 Insurance G8.1 Contractor to insure Contract Works and Materials G8.4 Professional indemnity insurance for Contractor s design G8.5 Contractor s insurance General G8.6 Principal s option to insure Contract Works and Materials G8.8 Principal s insurances General G9 Variations G9.1 Variations permitted G9.3 Valuation of variations G9.4 Daywork G10 Time for completion G10.3 Extension of time G10.4 Certificate of Practical Completion G11 Defects Liability G11.1 Period of Defects Liability G12 Payments G12.1 Contractor s payment claims G12.5 Final Payment Schedule G12.12 Goods and services tax G13 Disputes G13.1 General G13.2 Appointment and determination of Expert Conditions of tendering G106 Acceptance of tender GENERAL AID TO VALUATION OF VARIATIONS Worked examples and flow chart Valuation of Variations Worked examples COPYRIGHT

9 NZS 3915:2005 REFERENCED DOCUMENTS REFERENCED DOCUMENTS In this Standard reference is made to the following: NEW ZEALAND STANDARDS NZS 3910:1998 NZS 3910:2003 NZS 3915:2000 Conditions of contract for building and civil engineering construction Conditions of contract for building and civil engineering construction Conditions of contract for building and civil engineering construction (where no person is appointed to act as Engineer to the contract) NEW ZEALAND LEGISLATION Arbitration Act 1996 Building Act 2004 Cadastral Survey Act 2002 Construction Contracts Act 2002 Construction Contracts Regulations 2003 Goods and Services Tax Act 1985 COPYRIGHT 7

10 FOREWORD NZS 3915:2005 FOREWORD NZS 3915:2005 Conditions of contract for building and civil engineering construction (where no person is appointed to act as Engineer to the contract) was developed to provide a standard contract form for the situation where the client (Principal) administers the contract directly. NZS 3915:2005 was based on NZS 3910:1998 Conditions of contract for building and civil engineering construction and altered to accommodate not having an Engineer administer the contract. In 2003, Standards New Zealand published a revision of NZS NZS 3910:2003 included important changes to Sections 12 and 13 to make it compatible with the Construction Contracts Act Changes were made to the insurance provisions to more closely reflect the realities of the insurance market in the light of advice from the insurance industry. Changes were also made to provide for the Contractor having design responsibility, or being required to obtain pre-construction consent documentation under the Building Act. There were also some other minor changes to the document. NZS 3915:2005 has been revised with the objective of aligning its intent and content with NZS 3910:2003, while still providing for the client (Principal) to administer the contract directly without an engineer, architect, surveyor or the like acting as the Engineer carrying out the administrative role as provided for in NZS REVIEW OF STANDARDS Suggestions for improvement of this Standard will be welcomed. They should be sent to the Chief Executive, Standards New Zealand, Private Bag 2439, Wellington. 8 COPYRIGHT

11 NZS 3915:2005 SECTION 1 INTERPRETATION FOREWORD NEW ZEALAND STANDARD CONDITIONS OF CONTRACT FOR BUILDING AND CIVIL ENGINEERING CONSTRUCTION (where no person is appointed to act as Engineer to the contract) GENERAL CONDITIONS OF CONTRACT SECTION 1 INTERPRETATION 1.1 Application This Section shall apply to the Contract Documents except where inconsistent with the context. 1.2 Definitions ADJUDICATION means adjudication under the Construction Contracts Act ADJUDICATOR S DETERMINATION means an adjudicator s determination under the Construction Contracts Act BASE VALUE has the meaning assigned to it in 9.3. CONTRACT AGREEMENT means the written agreement for the fulfilment of the contract signed by the Principal and the Contractor. CONTRACT DOCUMENTS means the Contract Agreement and the documents referred to in and forming part of the Contract Agreement or the documents, which constitute the contract under CONTRACT PRICE means the sum named in the Contract Documents as payable for the completion of the Contract Works subject to such adjustments as are provided for in the Contract Documents. CONTRACT WORKS means the works including Temporary Works to be executed in accordance with the contract. CONTRACTOR means the Person whose tender has been accepted by the Principal or the Person who has been so named in the Contract Documents, and includes the executors, administrators, and successors of the Contractor. COST includes expense or loss and overhead cost whether on or off the Site. DATE OF ACCEPTANCE OF TENDER means the date on which the successful tenderer is notified in writing that its tender is accepted. DAYS when used to express a period of time means Working Days. DAYWORK means work to which 9.4 applies. DEFECTS LIABILITY CERTIFICATE means a certificate issued under DRAWINGS means the Drawings included in the Contract Documents together with any additions to, or modification of such Drawings approved and notified to the Contractor and such other Drawings as may from time to time be supplied by the Principal to the Contractor for the purpose of the contract. Drawings also include those that have been prepared by, or on behalf of the Contractor, and which have fulfilled any requirement in the Contract Documents for preparation and review of such Drawings prior to their issue for construction. COPYRIGHT 9

12 NZS 3915:2005 Conditions of contract for building and civil engineering construction (where no person is appointed to act as engineer to the contract) This is a free sample only. Purchase the full publication here: Or contact Standards New Zealand using one of the following methods. Freephone: (New Zealand) Phone: enquiries@standards.govt.nz