NZS 3902:2004
Housing, alterations and small buildings contract
NZS 3902 provides a standard form of building contract suitable for owners who are making their own building arrangements. This standard will help comply with the Building Amendment Act 2013 and make the building contract process smoother and easier for homeowner and builder.
If you’re a homeowner doing building or renovating that will cost $30,000 or more (including GST), you must have a written contract with your building contractor. Even if the work costs less than $30,000, it’s a good idea to always have a written contract so that you are legally protected and know what you’re paying for. This is a 'plain English' standard building contract, for use between property owners and the contractors who will build their house or undertake alterations or other building work of a simple nature. It sets out the rights and responsibilities for all parties, and is intended to be fair and easily understood.
NZS 3902 contains an electronic Microsoft Word form that can be filled in by all parties to the contract. The form cannot be used on its own and must be used with the full standard.
Guidance on NZS 3902 and the electronic form.
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COMMITTEE REPRESENTATION
© COPYRIGHT
STANDARDS COUNCIL APPROVAL
CONTENTS
REFERENCED DOCUMENTS
REVIEW OF STANDARDS
FOREWORD
1 INTRODUCTION
1.2 How to fill in this Contract
1.3 Signing this Contract
1.4 Builder’s main obligations
1.5 Owner’s main obligations
2 INTERPRETATION
2.1 Definitions
2.2 General
4 WARRANTIES
3 CONTRACT DETAILS
4 WARRANTIES
4.1 Builder's warranties
4.2 Owner’s warranties
4.3 Warranties to be in writing
5 CONSENTS AND APPROVALS
6 GENERAL OBLIGATIONS
6.1 Owner’s representative
6.2 Builder’s representative
6.3 Change of representative
6.4 Builder’s employees and subcontractors
6.5 Subcontractors and supply of materials
6.6 Owner’s contractors
6.7 Plans and Specifications
7 SITE POSSESSION AND ACCESS
7.1 Access to the Site
7.2 Survey
7.3 Keeping the Site clean and tidy
7.4 Use and occupation of the Site
7.5 Circumstances not reasonably foreseeable
8 SAFETY OF THE SITE AND THE BUILDING WORK
8.1 Care of Building Work
8.2 Safety
8.3 Emergency action
9 LOSS OR DAMAGE
9.1 Builder to indemnify Owner
9.2 When indemnity is not to apply
9.3 Owner to indemnify Builder
10.1 Owner to insure work on existing structures
10 INSURANCE
10.1 Owner to insure work on existing structures
10.2 Builder to insure
10.3 Public liability insurance
10.4 Insurance requirements
11 START DATE AND FINISH TIME
11.1 Start Date
11.2 Start Conditions
11.3 Delay in Start Date
11.4 Finish Time
11.5 Time Extensions
11.6 Making up for lost time
11.7 Remedy for late completion
11.8 Practical Completion
12 VARIATIONS AND ALLOWANCES
12.1 Variations permitted
12.2 Variation orders
12.3 Value of Variation
12.4 Allowances
12.5 Additional works
12.6 Unprocurable materials
13 PAYMENTS
13.1 Builder’s Payment Claims
13.2 Pay or give Payment Schedule
13.3 Payment of Performance and Defects Retention
13.4 Builder’s Final Account
13.6 Late payment
14.2 Performance and Defects Retention
14 PERFORMANCE AND DEFECTS LIABILITY
14.1 Defects Liability
14.2 Performance and Defects Retention
14.3 Final Completion Certificate
15 CANCELLATION OF THIS CONTRACT
15.1 Automatic cancellation
15.2 Right to cancel
15.3 What happens on cancellation?
16 DISPUTES RESOLUTION
16.1 Good faith
16.2 Mediation
16.3 Adjudication
16.4 Arbitration
16.5 No suspension during Dispute
17 GENERAL
17.1 Assignment
17.2 Notices
17.3 Waiver
17.4 Costs
17.5 Governing law
17.6 Personal information
17.7 GST
18 PURCHASE OF LAND (IF APPLICABLE)
18.1 Application of this Contract
18.2 Land Purchase Contract
18.3 Land fit for purpose
APPENDIX A CONSTRUCTION CONTRACT FLOW CHART
APPENDIX B GUIDELINES – HELPFUL HINTS TO USING THIS STANDARD
SCHEDULE 1 – SPECIAL CONDITIONS OF CONTRACT
SCHEDULE 2 – CONFIRMATION OF INSURANCE COVER
SCHEDULE 3 – NOTICE OF PRACTICAL COMPLETION
SCHEDULE 4 – CERTIFICATE OF PRACTICAL COMPLETION
SCHEDULE 5 – NOTICE OF FINAL COMPLETION
SCHEDULE 6 – FINAL COMPLETION CERTIFICATE
SCHEDULE 7 – WARRANTY AGREEMENT
SCHEDULE 8 – ADJUDICATION PROCESS
SCHEDULE 9 – SEPARATE AGREEMENT TO ARBITRATION
Previous versions
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COMMITTEE REPRESENTATION
© COPYRIGHT
STANDARDS COUNCIL APPROVAL
CONTENTS
REFERENCED DOCUMENTS
REVIEW OF STANDARDS
FOREWORD
1 INTRODUCTION
1.2 How to fill in this Contract
1.3 Signing this Contract
1.4 Builder’s main obligations
1.5 Owner’s main obligations
2 INTERPRETATION
2.1 Definitions
2.2 General
4 WARRANTIES
3 CONTRACT DETAILS
4 WARRANTIES
4.1 Builder's warranties
4.2 Owner’s warranties
4.3 Warranties to be in writing
5 CONSENTS AND APPROVALS
6 GENERAL OBLIGATIONS
6.1 Owner’s representative
6.2 Builder’s representative
6.3 Change of representative
6.4 Builder’s employees and subcontractors
6.5 Subcontractors and supply of materials
6.6 Owner’s contractors
6.7 Plans and Specifications
7 SITE POSSESSION AND ACCESS
7.1 Access to the Site
7.2 Survey
7.3 Keeping the Site clean and tidy
7.4 Use and occupation of the Site
7.5 Circumstances not reasonably foreseeable
8 SAFETY OF THE SITE AND THE BUILDING WORK
8.1 Care of Building Work
8.2 Safety
8.3 Emergency action
9 LOSS OR DAMAGE
9.1 Builder to indemnify Owner
9.2 When indemnity is not to apply
9.3 Owner to indemnify Builder
10.1 Owner to insure work on existing structures
10 INSURANCE
10.1 Owner to insure work on existing structures
10.2 Builder to insure
10.3 Public liability insurance
10.4 Insurance requirements
11 START DATE AND FINISH TIME
11.1 Start Date
11.2 Start Conditions
11.3 Delay in Start Date
11.4 Finish Time
11.5 Time Extensions
11.6 Making up for lost time
11.7 Remedy for late completion
11.8 Practical Completion
12 VARIATIONS AND ALLOWANCES
12.1 Variations permitted
12.2 Variation orders
12.3 Value of Variation
12.4 Allowances
12.5 Additional works
12.6 Unprocurable materials
13 PAYMENTS
13.1 Builder’s Payment Claims
13.2 Pay or give Payment Schedule
13.3 Payment of Performance and Defects Retention
13.4 Builder’s Final Account
13.6 Late payment
14.2 Performance and Defects Retention
14 PERFORMANCE AND DEFECTS LIABILITY
14.1 Defects Liability
14.2 Performance and Defects Retention
14.3 Final Completion Certificate
15 CANCELLATION OF THIS CONTRACT
15.1 Automatic cancellation
15.2 Right to cancel
15.3 What happens on cancellation?
16 DISPUTES RESOLUTION
16.1 Good faith
16.2 Mediation
16.3 Adjudication
16.4 Arbitration
16.5 No suspension during Dispute
17 GENERAL
17.1 Assignment
17.2 Notices
17.3 Waiver
17.4 Costs
17.5 Governing law
17.6 Personal information
17.7 GST
18 PURCHASE OF LAND (IF APPLICABLE)
18.1 Application of this Contract
18.2 Land Purchase Contract
18.3 Land fit for purpose
APPENDIX A CONSTRUCTION CONTRACT FLOW CHART
APPENDIX B GUIDELINES – HELPFUL HINTS TO USING THIS STANDARD
SCHEDULE 1 – SPECIAL CONDITIONS OF CONTRACT
SCHEDULE 2 – CONFIRMATION OF INSURANCE COVER
SCHEDULE 3 – NOTICE OF PRACTICAL COMPLETION
SCHEDULE 4 – CERTIFICATE OF PRACTICAL COMPLETION
SCHEDULE 5 – NOTICE OF FINAL COMPLETION
SCHEDULE 6 – FINAL COMPLETION CERTIFICATE
SCHEDULE 7 – WARRANTY AGREEMENT
SCHEDULE 8 – ADJUDICATION PROCESS
SCHEDULE 9 – SEPARATE AGREEMENT TO ARBITRATION
Previous versions
NZS 3902:2004
Online Library subscription information
Online library subscriptions provide a cost-effective solution for organisations of any size to access the latest standards, offering 24/7 access to a personalised catalogue. The service ensures subscribers have have the most up-to-date version of selected standards, incluing automatic updates for any amendments or versions. Pricing is dependent on the chosen standards and the number of concurrent users, with discounts applied from the standards PDF price. For customised subscriptions or further inquiries, contact the Online Library team.