New standards to complement the conditions of contract range for construction
Following the publishing of NZS 3910 in late 2023, two complementary standards – NZS 3917 and NZS 3916 - now bring good modern practice and balance for construction contracts up to date.
After more than a decade two new versions are available of:
- NZS 3916:2025 Conditions of contract for building and civil engineering – Design and construct
- NZS 3917:2025 Conditions of contract for building and civil engineering – Fixed Term
These complement conditions of contract standards suite along with NZS 3910:2023 Conditions of contract for building and civil engineering construction.
Guiding robust contracts for construction
Contracts that are comprehensive but at the same time familiar and easy to understand are important in today’s technical and highly competitive building and construction environment. They are also an important productivity enhancing tool for the construction sector.
New Zealand’s building, construction, engineering, and infrastructure industries rely on New Zealand standard conditions of contract to ensure that their contracts are balanced to sustain and enable New Zealand’s economy and comply with our legislative scene.
Like NZ 3910, these two editions are updates to the 2013 versions incorporating many of the changes introduced in NZS 3910:2023 Conditions of contract for building and civil engineering.
Some of the more notable changes to both standards are:
- Clarification of Principals Requirements
- The introduction of a Target Contract Price, and provisions for the Contract Price to have various components including Lump Sum, Cost Reimbursable, and Target Price.
- The inclusion of a new clause dedicated to the protection of the environment.
- The addition of clear contract administration processes throughout, including new content on reviewing instructions and decisions;
- The elimination of the Engineer to the Contract and its dual role, replacing it with two distinct new roles.
- This significant change ensures clarity on the purpose of each role, emphasising when specific activities demand fairness and impartiality;
- Removal of the Principal’s obligations to search for underground and above-ground utilities records; and
- The transition to a fault-based indemnity and the introduction of a limitation on liability.
- NZS 3916 includes the introduction of the Final Account and Interim Final Account processes along with addition of a new section for Design Subcontractors.
Overall, both contracts remain familiar to practitioners and users: while some parts have been moved, the overall structures have been maintained.
Chair of the committee behind the standard, David Wilkie, who represented the New Zealand Institute of Building, says, ‘Balanced construction contracts are essential to a productive construction sector and these updated standards reflect best modern practice and fair risk allocation for the New Zealand market. They have been carefully shaped to deliver value for money and enable a healthy construction sector.'
NZS 3916:2025 Conditions of contract for building and civil engineering – Design and construct
is an update of the 2013 version and incorporates many of the changes introduced in NZS 3910:2023 Conditions of contract for building and civil engineering.
NZS 3916 is similar to NZS 3910, but has been adapted to provide for the situation where the Contractor is responsible for design as well as construction.
NZS 3917:2025 Conditions of contract for building and civil engineering – Fixed Term
NZS 3917 is intended for use when contracts are let for construction or maintenance of building or engineering works where the contract is intended to run for a defined period of time, as opposed to a contract for a defined scope of work. It might also be used for the provision of services (other than design) such as inspection and testing, cleaning, painting, preventative maintenance, repairs, or renewal of components within completed works.
Shaped with industry input.
Before the review of the underlying NZS 3910:2013, the industry had strongly advocated for a contract to encourage collaboration and provide clear risk allocation. The committee chose not to include a specific collaboration section; rather, the decision was to outline the procedures and integrated responsibilities for all activities that will benefit from open communication, balance, and reciprocity. See the replacement of the Engineer to the Contract with two distinct roles, as a good examples of this.
The refreshed guidelines remain a valuable tool for all involved parties. They have been updated to give a clearer overview of key clauses, retain valuable examples and flowcharts, and eliminate any confusing or redundant content.
Lastly, there have been multiple changes to ensure the language is straightforward, consistent, and gender neutral, and that legislative references remain timeless.
Get your copies of the standards here:
NZS 3917:2025 Conditions of contract for building and civil engineering – Fixed Term(external link)
As with NZS 3910 there will be the ability for customers to obtain a licence to adapt the general conditions to create contract agreements for both NZS 3916 and NZS 3917. Please contact our copyright team at Copyright@standards.govt.nz who will facilitate this.