NZS 3910:2023
Conditions of contract for building and civil engineering construction
Provides a standard form of general conditions of contract for incorporation into construction contract documents. It enables the parties to the contract to quickly establish contractual arrangements that deliver a wide variety of building and civil engineering projects. Contracts based on this standard will be comprehensive but at the same time easy to understand and will reflect fair-risk allocation between the parties.
The standard contains essential commercial provisions aligned with the requirements of the Construction Contracts Act 2002. An overarching objective of the revised NZS 3910:2023 is to lessen the need to add special conditions of contract, thereby improving consistency, familiarity and efficiency in construction contracting.
If you are interested in adapting NZS 3910:2023 contracts (under strict terms), there are four licensing options to choose from, relating to the number of construction projects contracted in a 2-year period:
- Five-use 2-year licence to adapt NZS 3910:2023.
- Fifteen-use 2-year licence to adapt NZS 3910:2023.
- Forty-five-use 2-year licence to adapt NZS 3910:2023.
- Unlimited-use 2-year licence to adapt NZS 3910:2023.
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Committee representation
Acknowledgement
Copyright
Contents
Referenced documents
New Zealand legislation
Other publications
Websites
Review of standards
Foreword
CONTRACT AGREEMENT
General conditions of contract
1 INTERPRETATION
1.1 Application
1.2 Definitions
1.3 General
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
1.3.6
1.3.7
1.4 Law, currency, and language
1.4.1
1.4.2
1.4.3
1.5 Computation of time
2 THE CONTRACT
2.1 Type of Contract Price
2.1.1
2.1.2
2.2 Lump sum Contract Price
2.2.1
2.2.2
2.2.3
2.2.4
2.3 Measure and value Contract Price
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.4 Cost reimbursement Contract Price
2.4.1
2.4.2
2.4.3
2.4.4
2.4.5
2.5 Target Contract Price
2.5.1
2.5.2
2.5.3
2.5.4
2.6 Local authority contracts, contracts in public places, and road contracts
2.6.1
2.6.2
2.6.3
2.7 Evidence of Contract
2.7.1
2.7.2
2.7.3
2.7.4
2.8 Documents prepared or provided by the Contract Administrator or Principal
2.8.1
2.8.2
2.8.3
2.8.4
2.8.5
2.8.6
2.8.7
2.9 Documents prepared or provided by the Contractor
2.9.1
2.9.2
2.9.3
2.9.4
2.10 Assignment
2.10.1
2.10.2
2.10.3
2.11 No waiver
3 BONDS
3.1 Contractor’s Bond
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.2 Principal’s Bond
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
4 SUBCONTRACTS
4.1 General
4.1.1
4.1.2
4.1.3
4.2 Nominated Subcontractors
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
5 GENERAL OBLIGATIONS
5.1 General responsibilities
5.1.1
5.1.2
5.1.3
5.1.4
5.2 Design responsibilities
5.2.1
5.2.2
5.2.3
5.3 Contractor’s Representative
5.3.1
5.3.2
5.4 Control of employees
5.5 Possession of the Site
5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
5.5.6
5.6 Separate Contractors
5.6.1
5.6.2
5.7 Care of the Contract Works and Site
5.7.1
5.7.2
5.7.3
5.7.4
5.7.5
5.7.6
5.8 Protection of Persons and property
5.8.1
5.8.2
5.8.3
5.8.4
5.8.5
5.8.6
5.9 Site-specific safety plan
5.9.1
5.9.2
5.9.3
5.9.4
5.9.5
5.10 Management Plans
5.10.1
5.10.2
5.10.3
5.10.4
5.11 Setting out
5.11.1
5.11.2
5.11.3
5.11.4
5.11.5
5.12 Materials, labour, and Plant
5.12.1
5.12.2
5.12.3
5.13 Programme
5.13.1
5.13.2
5.13.3
5.13.4
5.13.5
5.13.6
5.13.7
5.13.8
5.13.9
5.13.10
5.14 Compliance with laws and Consents
5.14.1
5.14.2
5.14.3
5.14.4
5.14.5
5.14.6
5.14.7
5.14.8
5.14.9
5.15 Intellectual property
5.15.1
5.15.2
5.16 Underground and above-ground utilities
5.16.1
5.16.2
5.16.3
5.16.4
5.17 Discovery
5.17.1
5.17.2
5.18 Clearance of Site
5.19 Supply by Principal
5.19.1
5.19.2
5.20 Completion Records
5.20.1
5.20.2
5.20.3
5.21 Protection of the environment
5.21.1
5.21.2
5.22 Reporting
5.22.1
6 CONTRACT ADMINISTRATION
6.1 Appointment of Contract Administrator and Independent Certifier
6.1.1
6.1.2
6.1.3
6.1.4
6.1.5
6.2 Role of Contract Administrator and Independent Certifier
6.2.1
6.2.2
6.2.3
6.3 Instructions and Decisions
6.3.1
6.3.2
6.3.3
6.3.4
6.3.5
6.3.6
6.3.7
6.4 Review of Instructions and Decisions
6.4.1
6.4.2
6.4.3
6.4.4
6.4.5
6.4.6
6.4.7
6.4.8
6.5 Inspection, recording, measuring, and testing
6.5.1
6.5.2
6.5.3
6.5.4
6.5.5
6.5.6
6.5.7
6.6 Removal and making good
6.6.1
6.6.2
6.6.3
6.6.4
6.6.5
6.7 Certification
6.7.1
6.7.2
6.7.3
6.7.4
6.8 Suspension of work
6.8.1
6.8.2
6.8.3
6.8.4
6.8.5
6.9 Urgent work
6.9.1
6.9.2
6.9.3
6.9.4
6.10 Early warning
6.10.1
6.10.2
6.10.3
7 INDEMNITY AND LIABILITY LIMIT
7.1 Indemnity
7.1.1
7.1.2
7.1.3
7.1.4
7.2 Contractor’s liability limit
7.2.1
7.2.2
7.2.3
8 INSURANCE
8.1 General
8.1.1
8.1.2
8.1.3
8.1.4
8.1.5
8.1.6
8.2 Contractor-arranged insurances – General
8.2.1
8.2.2
8.2.3
8.2.4
8.2.5
8.2.6
8.2.7
8.2.8
8.3 Contractor-arranged construction insurance
8.3.1
8.3.2
8.3.3
8.3.4
8.3.5
8.4 Contractor-arranged Plant insurance
8.5 Contractor-arranged public liability insurance
8.5.1
8.5.2
8.5.3
8.5.4
8.6 Contractor-arranged professional indemnity insurance
8.6.1
8.6.2
8.6.3
8.6.4
8.7 Principal-arranged insurances – General
8.7.1
8.7.2
8.7.3
8.7.4
8.7.5
8.7.6
8.7.7
8.8 Principal-arranged construction insurance
8.8.1
8.8.2
8.8.3
8.8.4
8.8.5
8.9 Principal’s option to insure public liability
8.9.1
8.9.2
8.9.3
9 VARIATIONS AND CONTRACT PRICE ADJUSTMENTS
9.1 Variations permitted
9.1.1
9.1.2
9.1.3
9.1.4
9.1.5
9.2 Notice of Variation
9.2.1
9.2.2
9.2.3
9.2.4
9.2.5
9.3 Valuation of Variations
9.3.1
9.3.2
9.3.3
9.3.4
9.3.5
9.3.6
9.3.7
9.3.8
9.3.9
9.3.10
9.3.11
9.3.12
9.3.13
9.3.14
9.3.15
9.3.16
9.4 Daywork
9.4.1
9.4.2
9.4.3
9.5 Unforeseen physical conditions
9.5.1
9.5.2
9.5.3
9.5.4
9.6 Cost fluctuations
9.6.1
9.6.2
9.7 Provisional Sums
9.7.1
9.7.2
9.7.3
9.7.4
9.8 Provisional Items
9.8.1
9.8.2
9.9 Prime Cost Sums
9.9.1
9.9.2
9.9.3
9.10 Contingency sums
9.10.1
9.10.2
9.11 Final Account
9.11.1
9.11.2
9.11.3
9.11.4
9.11.5
9.11.6
9.11.7
9.11.8
10 TIME FOR COMPLETION
10.1 Commencement
10.1.1
10.1.2
10.2 Due Date for Completion
10.2.1
10.2.2
10.3 Extension of time
10.3.1
10.3.2
10.3.3
10.3.4
10.3.5
10.3.6
10.3.7
10.3.8
10.4 Practical Completion Certificate
10.4.1
10.4.2
10.4.3
10.4.4
10.4.5
10.4.6
10.5 Damages for late completion
10.5.1
10.5.2
10.5.3
10.5.4
10.6 Bonus for early completion
10.6.1
10.7 Occupancy by the Principal
10.7.1
10.7.2
10.7.3
10.7.4
11 DEFECTS LIABILITY
11.1 Defects Notification Period
11.2 Remedying of defects
11.2.1
11.2.2
11.2.3
11.2.4
11.2.5
11.2.6
11.2.7
11.2.8
11.3 Final Completion Certificate
11.3.1
11.3.2
11.3.3
11.4 Effect of Final Completion Certificate
11.4.1
11.5 Warranties and guarantees
11.5.1
11.5.2
11.5.3
11.5.4
12 PAYMENTS
12.1 Contractor’s payment claims
12.1.1
12.1.2
12.1.3
12.2 Progress Payment Schedules
12.2.1
12.2.2
12.2.3
12.2.4
12.2.5
12.2.6
12.2.7
12.2.8
12.3 Retention monies
12.3.1
12.3.2
12.3.3
12.3.4
12.3.5
12.3.6
12.3.7
12.4 Final payment claim
12.4.1
12.4.2
12.4.3
12.5 Final Payment Schedule
12.5.1
12.5.2
12.5.3
12.5.4
12.6 Effect of final Payment Schedule
12.6.1
12.7 Interest
12.7.1
12.7.2
12.7.3
12.7.4
12.7.5
12.8 Goods and services tax
12.8.1
12.8.2
13 DISPUTES
13.1 Resolution of disputes
13.1.1
13.1.2
13.1.3
13.2 Mediation
13.2.1
13.3 Arbitration
13.3.1
13.3.2
13.3.3
13.3.4
13.4 Actions during dispute
13.4.1
13.4.2
13.4.3
14 FRUSTRATION, DEFAULT AND TERMINATION
14.1 Frustration
14.1.1
14.1.2
14.2 Default by the Contractor
14.2.1
14.2.2
14.2.3
14.2.4
14.2.5
14.3 Default by the Principal
14.3.1
14.3.2
14.3.3
14.3.4
15 SERVICE OF NOTICES
15.1 General
15.1.1
15.1.2
15.1.3
15.1.4
15.1.5
15.1.6
Appendix A – Cost Fluctuation Adjustment by Indexation
A1
A2
A3
A4
A5
A6
A7
A8
Appendix B – Contracts in public places and road contracts
B1 Interpretation
B2 Contract Administrator’s powers and responsibilities
B3 Time for completion
Schedules to General Conditions of Contract
Schedule 1 (Part A) – Special Conditions of Contract – Specific Conditions of Contract
Schedule 1 (Part B – Insurances) – Special Conditions of Contract – Specific Conditions of Contract
Schedule 2 – Special Conditions of Contract – Other Conditions of Contract
Schedule 3 – Form of Contractor’s Bond
Schedule 4 – Form of Principal’s Bond
Schedule 5 – Form of Contractor’s Bond in lieu of retentions
Schedule 6 – Form of Producer Statement – Construction
Schedule 7 – Information on Contractor-arranged construction insurance
Schedule 8 – Information on Contractor-arranged Plant insurance
Schedule 9 – Information on public liability insurance
Schedule 10 – Information on Contractor-arranged motor vehicle insurance
Schedule 11 – Information on Contractor-arranged professional indemnity insurance
Schedule 12 – Information on Principal-arranged construction insurance
Schedule 13 – Form of warranty
Schedule 14 – Agreement for off-site Materials
Schedule 15 – Practical Completion Certificate
Schedule 16 – Final Completion Certificate
CONDITIONS OF TENDERING
SCHEDULE TO CONDITIONS OF TENDERING
Annexure 1 – List of Drawings
Annexure 2 – List of Specifications
GUIDELINES
GENERAL AID TO VALUATION OF VARIATIONS
INDEX
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Committee representation
Acknowledgement
Copyright
Contents
Referenced documents
New Zealand legislation
Other publications
Websites
Review of standards
Foreword
CONTRACT AGREEMENT
General conditions of contract
1 INTERPRETATION
1.1 Application
1.2 Definitions
1.3 General
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
1.3.6
1.3.7
1.4 Law, currency, and language
1.4.1
1.4.2
1.4.3
1.5 Computation of time
2 THE CONTRACT
2.1 Type of Contract Price
2.1.1
2.1.2
2.2 Lump sum Contract Price
2.2.1
2.2.2
2.2.3
2.2.4
2.3 Measure and value Contract Price
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.4 Cost reimbursement Contract Price
2.4.1
2.4.2
2.4.3
2.4.4
2.4.5
2.5 Target Contract Price
2.5.1
2.5.2
2.5.3
2.5.4
2.6 Local authority contracts, contracts in public places, and road contracts
2.6.1
2.6.2
2.6.3
2.7 Evidence of Contract
2.7.1
2.7.2
2.7.3
2.7.4
2.8 Documents prepared or provided by the Contract Administrator or Principal
2.8.1
2.8.2
2.8.3
2.8.4
2.8.5
2.8.6
2.8.7
2.9 Documents prepared or provided by the Contractor
2.9.1
2.9.2
2.9.3
2.9.4
2.10 Assignment
2.10.1
2.10.2
2.10.3
2.11 No waiver
3 BONDS
3.1 Contractor’s Bond
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.2 Principal’s Bond
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
4 SUBCONTRACTS
4.1 General
4.1.1
4.1.2
4.1.3
4.2 Nominated Subcontractors
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
5 GENERAL OBLIGATIONS
5.1 General responsibilities
5.1.1
5.1.2
5.1.3
5.1.4
5.2 Design responsibilities
5.2.1
5.2.2
5.2.3
5.3 Contractor’s Representative
5.3.1
5.3.2
5.4 Control of employees
5.5 Possession of the Site
5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
5.5.6
5.6 Separate Contractors
5.6.1
5.6.2
5.7 Care of the Contract Works and Site
5.7.1
5.7.2
5.7.3
5.7.4
5.7.5
5.7.6
5.8 Protection of Persons and property
5.8.1
5.8.2
5.8.3
5.8.4
5.8.5
5.8.6
5.9 Site-specific safety plan
5.9.1
5.9.2
5.9.3
5.9.4
5.9.5
5.10 Management Plans
5.10.1
5.10.2
5.10.3
5.10.4
5.11 Setting out
5.11.1
5.11.2
5.11.3
5.11.4
5.11.5
5.12 Materials, labour, and Plant
5.12.1
5.12.2
5.12.3
5.13 Programme
5.13.1
5.13.2
5.13.3
5.13.4
5.13.5
5.13.6
5.13.7
5.13.8
5.13.9
5.13.10
5.14 Compliance with laws and Consents
5.14.1
5.14.2
5.14.3
5.14.4
5.14.5
5.14.6
5.14.7
5.14.8
5.14.9
5.15 Intellectual property
5.15.1
5.15.2
5.16 Underground and above-ground utilities
5.16.1
5.16.2
5.16.3
5.16.4
5.17 Discovery
5.17.1
5.17.2
5.18 Clearance of Site
5.19 Supply by Principal
5.19.1
5.19.2
5.20 Completion Records
5.20.1
5.20.2
5.20.3
5.21 Protection of the environment
5.21.1
5.21.2
5.22 Reporting
5.22.1
6 CONTRACT ADMINISTRATION
6.1 Appointment of Contract Administrator and Independent Certifier
6.1.1
6.1.2
6.1.3
6.1.4
6.1.5
6.2 Role of Contract Administrator and Independent Certifier
6.2.1
6.2.2
6.2.3
6.3 Instructions and Decisions
6.3.1
6.3.2
6.3.3
6.3.4
6.3.5
6.3.6
6.3.7
6.4 Review of Instructions and Decisions
6.4.1
6.4.2
6.4.3
6.4.4
6.4.5
6.4.6
6.4.7
6.4.8
6.5 Inspection, recording, measuring, and testing
6.5.1
6.5.2
6.5.3
6.5.4
6.5.5
6.5.6
6.5.7
6.6 Removal and making good
6.6.1
6.6.2
6.6.3
6.6.4
6.6.5
6.7 Certification
6.7.1
6.7.2
6.7.3
6.7.4
6.8 Suspension of work
6.8.1
6.8.2
6.8.3
6.8.4
6.8.5
6.9 Urgent work
6.9.1
6.9.2
6.9.3
6.9.4
6.10 Early warning
6.10.1
6.10.2
6.10.3
7 INDEMNITY AND LIABILITY LIMIT
7.1 Indemnity
7.1.1
7.1.2
7.1.3
7.1.4
7.2 Contractor’s liability limit
7.2.1
7.2.2
7.2.3
8 INSURANCE
8.1 General
8.1.1
8.1.2
8.1.3
8.1.4
8.1.5
8.1.6
8.2 Contractor-arranged insurances – General
8.2.1
8.2.2
8.2.3
8.2.4
8.2.5
8.2.6
8.2.7
8.2.8
8.3 Contractor-arranged construction insurance
8.3.1
8.3.2
8.3.3
8.3.4
8.3.5
8.4 Contractor-arranged Plant insurance
8.5 Contractor-arranged public liability insurance
8.5.1
8.5.2
8.5.3
8.5.4
8.6 Contractor-arranged professional indemnity insurance
8.6.1
8.6.2
8.6.3
8.6.4
8.7 Principal-arranged insurances – General
8.7.1
8.7.2
8.7.3
8.7.4
8.7.5
8.7.6
8.7.7
8.8 Principal-arranged construction insurance
8.8.1
8.8.2
8.8.3
8.8.4
8.8.5
8.9 Principal’s option to insure public liability
8.9.1
8.9.2
8.9.3
9 VARIATIONS AND CONTRACT PRICE ADJUSTMENTS
9.1 Variations permitted
9.1.1
9.1.2
9.1.3
9.1.4
9.1.5
9.2 Notice of Variation
9.2.1
9.2.2
9.2.3
9.2.4
9.2.5
9.3 Valuation of Variations
9.3.1
9.3.2
9.3.3
9.3.4
9.3.5
9.3.6
9.3.7
9.3.8
9.3.9
9.3.10
9.3.11
9.3.12
9.3.13
9.3.14
9.3.15
9.3.16
9.4 Daywork
9.4.1
9.4.2
9.4.3
9.5 Unforeseen physical conditions
9.5.1
9.5.2
9.5.3
9.5.4
9.6 Cost fluctuations
9.6.1
9.6.2
9.7 Provisional Sums
9.7.1
9.7.2
9.7.3
9.7.4
9.8 Provisional Items
9.8.1
9.8.2
9.9 Prime Cost Sums
9.9.1
9.9.2
9.9.3
9.10 Contingency sums
9.10.1
9.10.2
9.11 Final Account
9.11.1
9.11.2
9.11.3
9.11.4
9.11.5
9.11.6
9.11.7
9.11.8
10 TIME FOR COMPLETION
10.1 Commencement
10.1.1
10.1.2
10.2 Due Date for Completion
10.2.1
10.2.2
10.3 Extension of time
10.3.1
10.3.2
10.3.3
10.3.4
10.3.5
10.3.6
10.3.7
10.3.8
10.4 Practical Completion Certificate
10.4.1
10.4.2
10.4.3
10.4.4
10.4.5
10.4.6
10.5 Damages for late completion
10.5.1
10.5.2
10.5.3
10.5.4
10.6 Bonus for early completion
10.6.1
10.7 Occupancy by the Principal
10.7.1
10.7.2
10.7.3
10.7.4
11 DEFECTS LIABILITY
11.1 Defects Notification Period
11.2 Remedying of defects
11.2.1
11.2.2
11.2.3
11.2.4
11.2.5
11.2.6
11.2.7
11.2.8
11.3 Final Completion Certificate
11.3.1
11.3.2
11.3.3
11.4 Effect of Final Completion Certificate
11.4.1
11.5 Warranties and guarantees
11.5.1
11.5.2
11.5.3
11.5.4
12 PAYMENTS
12.1 Contractor’s payment claims
12.1.1
12.1.2
12.1.3
12.2 Progress Payment Schedules
12.2.1
12.2.2
12.2.3
12.2.4
12.2.5
12.2.6
12.2.7
12.2.8
12.3 Retention monies
12.3.1
12.3.2
12.3.3
12.3.4
12.3.5
12.3.6
12.3.7
12.4 Final payment claim
12.4.1
12.4.2
12.4.3
12.5 Final Payment Schedule
12.5.1
12.5.2
12.5.3
12.5.4
12.6 Effect of final Payment Schedule
12.6.1
12.7 Interest
12.7.1
12.7.2
12.7.3
12.7.4
12.7.5
12.8 Goods and services tax
12.8.1
12.8.2
13 DISPUTES
13.1 Resolution of disputes
13.1.1
13.1.2
13.1.3
13.2 Mediation
13.2.1
13.3 Arbitration
13.3.1
13.3.2
13.3.3
13.3.4
13.4 Actions during dispute
13.4.1
13.4.2
13.4.3
14 FRUSTRATION, DEFAULT AND TERMINATION
14.1 Frustration
14.1.1
14.1.2
14.2 Default by the Contractor
14.2.1
14.2.2
14.2.3
14.2.4
14.2.5
14.3 Default by the Principal
14.3.1
14.3.2
14.3.3
14.3.4
15 SERVICE OF NOTICES
15.1 General
15.1.1
15.1.2
15.1.3
15.1.4
15.1.5
15.1.6
Appendix A – Cost Fluctuation Adjustment by Indexation
A1
A2
A3
A4
A5
A6
A7
A8
Appendix B – Contracts in public places and road contracts
B1 Interpretation
B2 Contract Administrator’s powers and responsibilities
B3 Time for completion
Schedules to General Conditions of Contract
Schedule 1 (Part A) – Special Conditions of Contract – Specific Conditions of Contract
Schedule 1 (Part B – Insurances) – Special Conditions of Contract – Specific Conditions of Contract
Schedule 2 – Special Conditions of Contract – Other Conditions of Contract
Schedule 3 – Form of Contractor’s Bond
Schedule 4 – Form of Principal’s Bond
Schedule 5 – Form of Contractor’s Bond in lieu of retentions
Schedule 6 – Form of Producer Statement – Construction
Schedule 7 – Information on Contractor-arranged construction insurance
Schedule 8 – Information on Contractor-arranged Plant insurance
Schedule 9 – Information on public liability insurance
Schedule 10 – Information on Contractor-arranged motor vehicle insurance
Schedule 11 – Information on Contractor-arranged professional indemnity insurance
Schedule 12 – Information on Principal-arranged construction insurance
Schedule 13 – Form of warranty
Schedule 14 – Agreement for off-site Materials
Schedule 15 – Practical Completion Certificate
Schedule 16 – Final Completion Certificate
CONDITIONS OF TENDERING
SCHEDULE TO CONDITIONS OF TENDERING
Annexure 1 – List of Drawings
Annexure 2 – List of Specifications
GUIDELINES
GENERAL AID TO VALUATION OF VARIATIONS
INDEX
Previous versions
NZS 3910:2023
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