Review of NZS3910 construction contract launched

A review of one of New Zealand’s most used construction contracts has been commissioned by the Construction Sector Accord and the New Zealand Infrastructure Commission, Te Waihanga.

NZS 3910:2013 (NZS 3910) is a standard form of contract used for the majority of contracts in the construction and infrastructure sector.  The review will be led by Standards New Zealand and follows its scoping review of NZS 3910 earlier this year, commissioned by the New Zealand Construction Industry Council.

“The scoping review established an overwhelming consensus from the construction sector that NZS 3910 requires comprehensive review. It hasn’t been updated since 2013 and hasn’t kept pace with legislative and other changes in the construction sector. That has resulted in a proliferation of special conditions to the standard form for individual projects,” said Ross Copland, Chief Executive of Te Waihanga.

“This review aims to deliver a standard industry construction contract that is fit for purpose and widely accepted by the sector,” said Chris Bunny, co-chair of the Accord Steering Group and a Deputy Secretary at MBIE.

“In particular, the Accord and Te Waihanga want to see a significant reduction in the use of special conditions, and for contracts to be transparent on risk and where it sits. We want to see the industry better able to document contracts quickly and easily, boosting productivity, and we want to see more contracts which embody Construction Accord Principles,” said Chris Bunny.

See the Accord guiding principles.(external link)

During November, Standards New Zealand will be inviting nominations from organisations within the construction sector to represent them on the review committee. Further information on the review process is available on the Standards New Zealand website.

See the NZS 3910 Review page(external link)

The following organisations are parties to a memorandum of understanding signed in late October:  

·         Construction Sector Accord

·         Te Waihanga

·         Property Council New Zealand

·         Auckland Council

·         Department of Corrections

·         Ministry of Education

·         Kāinga Ora

·         Ministry of Justice

·         Ministry of Health

·         New Zealand Defence Force

·         Civil Contractors New Zealand

·         Registered Master Builders

·         Specialist Trade Contractors Federation

·         New Zealand Construction Industry Council

Some of these organisations will be making direct financial contributions to support the review, while others will be receiving contributions from supporting entities from within the sector. These organisations and supporting entities are acknowledged for their commitment and support for the revision of NZS 3910.