NZS 3915:2005 COMMITTEE REPRESENTATION This Standard was prepared by Technical Committee P 3915 for the Standards Council established under the Standards Act 1988. 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 1994. 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 6020. Telephone: (04) 498 5990, Fax: (04) 498 5994. Website www.standards.co.nz AMENDMENTS No. Date of issue Description Entered by, and date 2
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 1-86975-027-6
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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... 9 1.1 Application... 9 1.2 Definitions... 9 1.3 General... 12 1.4 Law, currency and language... 12 1.5 Computation of time... 12 2 THE CONTRACT... 13 2.1 Type of contract... 13 2.2 Lump sum contract... 13 2.3 Measure and value contract... 13 2.4 Cost reimbursement contract... 14 2.5 Road or term maintenance contracts... 14 2.6 Local authority contracts... 14 2.7 Evidence of contract... 14 2.8 Documents prepared by the Principal... 15 2.9 Documents prepared by the Contractor... 16 3 PERFORMANCE BONDS... 17 3.1 Contractor s bond... 17 3.2 Principal s bond... 17 4 SUBCONTRACTS... 19 4.1 General... 19 4.2 Nominated Subcontractors... 19 5 GENERAL OBLIGATIONS... 21 5.1 General responsibilities... 21 5.2 Contractor s representative... 21 5.3 Control of employees... 21 5.4 Possession of the Site... 22 5.5 Separate contractors... 22 5.6 Care of the works and Site... 22 5.7 Protection of Persons and property... 23 5.8 Setting out... 24 5.9 Materials, labour and Plant... 24 5.10 Programme... 25 5.11 Compliance with laws... 25 5.12 Patents and royalties... 26 5.13 Underground and above ground utilities... 26 5.14 Treasure... 27 5.15 Clearance of Site... 27 5.16 Late supply by Principal... 27 5.17 Quality management... 27 5.18 As-built drawings, operation and maintenance manuals... 27 Contents continued overleaf COPYRIGHT 3
CONTENTS NZS 3915:2005 6 PRINCIPAL S REPRESENTATIVE AND OTHER PROVISIONS... 29 6.1 Appointment of Principal s Representative... 29 6.2 Inspection, recording, measuring and testing... 29 6.3 Removal and making good... 30 6.4 Certification... 30 6.5 Suspension of work... 30 6.6 Emergency work... 31 7 INDEMNITY... 32 7.1 Indemnity... 32 8 INSURANCE... 33 8.1 Contractor to insure Contract Works and Materials... 33 8.2 Contractor to insure Contractor s construction machinery... 34 8.3 Contractor to insure against public liability risks... 34 8.4 Professional indemnity insurance for Contractor s design... 35 8.5 Contractor s insurance General... 35 8.6 Principal s option to insure Contract Works and Materials... 36 8.7 Principal s option to insure public liability... 37 8.8 Principal s insurances General... 37 9 VARIATIONS... 38 9.1 Variations permitted... 38 9.2 Variation orders... 38 9.3 Valuation of Variations... 39 9.4 Daywork... 41 9.5 Unforeseen physical conditions... 41 10 TIME FOR COMPLETION... 42 10.1 Commencement... 42 10.2 Due Date for Completion... 42 10.3 Extension of time... 42 10.4 Certificate of Practical Completion... 43 10.5 Damages for late completion... 44 10.6 Bonus for early completion... 45 10.7 Occupancy by the Principal... 45 11 DEFECTS LIABILITY... 46 11.1 Period of Defects Liability... 46 11.2 Defects liability... 46 11.3 Defects Liability Certificate... 46 11.4 Effect of Defects Liability Certificate... 47 11.5 Guarantees... 47 12 PAYMENTS... 48 12.1 Contractor s payment claims... 48 12.2 Progress Payment Schedules... 48 12.3 Retention monies... 49 12.4 Final payment claim... 50 12.5 Final Payment Schedule... 50 12.6 Effect of Final Payment Schedule... 51 12.7 Interest... 51 12.8 Cost fluctuations... 52 12.9 Provisional Sums... 52 12.10 Prime Cost Sums... 52 12.11 Contingency sums... 53 12.12 Goods and services tax... 53 4 COPYRIGHT
NZS 3915:2005 CONTENTS 13 DISPUTES... 54 13.1 General... 54 13.2 Appointment and determination of Expert... 54 13.3 Mediation... 54 13.4 Arbitration... 55 13.5 Suspension during dispute... 56 13.6 Award of interest... 56 14 FRUSTRATION AND DEFAULT... 57 14.1 Frustration... 57 14.2 Default by the Contractor... 57 14.3 Default by the Principal... 58 15 SERVICE OF NOTICES... 60 15.1 General... 60 Appendix A COST FLUCTUATION ADJUSTMENT BY INDEXATION... 61 B CONSTRUCTION CONTRACTS IN PUBLIC ROADS... 62 B1 Interpretation... 62 B2 Principal s powers and responsibilities... 62 B3 Time for completion... 62 C TERM MAINTENANCE CONTRACTS (INCLUDING ROAD MAINTENANCE CONTRACTS)... 63 C1 Interpretation... 63 C2 General obligations... 63 C3 Underground and above ground utilities... 63 C4 Principal s powers and responsibilities... 63 C5 Time for completion... 64 C6 Defects liability... 65 C7 Payment... 67 D OBTAINING OF LICENCES BY THE CONTRACTOR... 68 SCHEDULES TO GENERAL CONDITIONS OF CONTRACT First Schedule Special Conditions of contract... 70 Part A Specific conditions of contract... 70 Part B Other conditions of contact... 80 Second Schedule Contract agreement... 81 Third Schedule Form of Contractor s performance bond... 82 Fourth Schedule Form of Principal s bond... 84 Fifth Schedule Form of Contractor s bond in lieu of retentions... 86 Sixth Schedule Form of producer statement Construction... 88 Seventh Schedule Information as to Contract Works insurance... 89 Eighth Schedule Information as to public liability insurance... 91 Ninth Schedule Information as to the Contractor s construction machinery insurance... 93 Tenth Schedule Information as to the Contractor s motor vehicle insurance... 94 Eleventh Schedule Information as to Contractor s professional indemnity insurance... 95 Twelfth Schedule Provisional Certificate of Practical Completion and certificate of Practical Completion... 96 Thirteenth Schedule Provisional Defects Liability Certificate and Defects Liability Certificate... 97 COPYRIGHT 5
CONTENTS NZS 3915:2005 CONDITIONS OF TENDERING... 98 101 Interpretation... 98 102 Issues of documents... 98 103 Tenderers to inform themselves... 98 104 Ambiguities in tender documents... 98 105 Submission of tenders... 99 106 Acceptance of tender... 99 107 Notification of acceptance... 100 SCHEDULE TO CONDITIONS OF TENDERING... 101 GUIDELINES Section G1 Interpretation... 103 G1.2 Definitions... 103 G5 General Obligations... 103 G5.10 Programme... 103 G6 Principal s Representative and other provisions... 104 G6.1 Appointment of Principal s Representative... 104 G6.2 Inspection, recording, measuring and testing... 104 G7 Indemnity... 104 G8 Insurance... 104 G8.1 Contractor to insure Contract Works and Materials... 104 G8.4 Professional indemnity insurance for Contractor s design... 105 G8.5 Contractor s insurance General... 105 G8.6 Principal s option to insure Contract Works and Materials... 106 G8.8 Principal s insurances General... 106 G9 Variations... 106 G9.1 Variations permitted... 106 G9.3 Valuation of variations... 106 G9.4 Daywork... 108 G10 Time for completion... 108 G10.3 Extension of time... 108 G10.4 Certificate of Practical Completion... 109 G11 Defects Liability... 109 G11.1 Period of Defects Liability... 109 G12 Payments... 110 G12.1 Contractor s payment claims... 110 G12.5 Final Payment Schedule... 110 G12.12 Goods and services tax... 110 G13 Disputes... 110 G13.1 General... 110 G13.2 Appointment and determination of Expert... 111 Conditions of tendering... 111 G106 Acceptance of tender... 111 GENERAL AID TO VALUATION OF VARIATIONS... 112 Worked examples and flow chart... 112 Valuation of Variations Worked examples... 113 6 COPYRIGHT
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
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 3910. NZS 3910:2003 included important changes to Sections 12 and 13 to make it compatible with the Construction Contracts Act 2002. 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 3910. 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
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 1.1.1 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 2002. ADJUDICATOR S DETERMINATION means an adjudicator s determination under the Construction Contracts Act 2002. 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 2.7.1. 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 11.3. 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
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: https://shop.standards.govt.nz//catalog/3915%3a2005%28nzs%29/view Or contact Standards New Zealand using one of the following methods. Freephone: 0800 782 632 (New Zealand) Phone: +64 3 943 4259 Email: enquiries@standards.govt.nz