NZS 3917:2025
Conditions of contract for building and civil engineering – Fixed Term
NZS 3917:2025 Conditions of contract for building and civil engineering – Fixed Term 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 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. When defining the Contract Works, it needs to be made clear what the services are, and whether the Contractor has an exclusive right to provide all such services to the Principal, or whether its right is limited to a defined scope.
Some of the more notable changes 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.
-
AS/NZS 4911:2003
General conditions of contract for the supply of equipment without installation
-
AS/NZS 4911:2003 A1
General conditions of contract for the supply of equipment without installation: Amendment 1
-
AS/NZS 5050(Int):2020
Managing disruption-related risk -
AS/NZS IEC 31010:2020
Risk management - Risk assessment techniques
Overall, the contract remains familiar to practitioners and users: while some parts have been moved, the overall structure has been maintained
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NZS 3917:2025 Cover Conditions of contract for building and civilengineering – Fixed Term
Committee representation
Acknowledgement
Copyright
Contents
Referenced documents
New Zealand legislation
Other publications
Websites
Review of standards
Foreword
CONTRACT AGREEMENT
Contract Agreement Annexure 1 – List of Principal’s Requirements
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
2.6.1
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 Occupancy of the Site
5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
5.5.6
5.5.7
5.6 Separate Contractors
5.6.1
5.6.2
5.6.3
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
5.14 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
5.15 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
5.20.4
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
8.9 Principal-arranged existing property insurance
8.9.1
8.9.2
8.9.3
8.9.4
8.10 Principal’s option to insure public liability
8.10.1
8.10.2
8.10.3
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
9.4 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
10 CONTRACT WORKS PERIOD
10.1 Commencement
10.1.1
10.1.2
10.2 Date of Expiry
10.2.1
10.2.2
10.2.3
10.2.4
10.3 Certificate on Expiry
10.3.1
10.3.2
10.3.3
10.3.4
10.3.5
10.4 Occupancy following the Date of Expiry
11 DEFECTS LIABILITY
11.1 Remedying of defects
11.1.1
11.1.2
11.1.3
11.2 Searching for defects
11.2.1
11.2.2
11.3 Failure to remedy defects
11.3.1
11.3.2
11.3.3
11.4 Final Completion Certificate
11.4.1
11.4.2
11.4.3
11.5 Effect of Final Completion Certificate
11.5.1
11.6 Warranties and guarantees
11.6.1
11.6.2
11.6.3
11.6.4
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
12.4.4
12.4.5
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
12.9 Performance payments
12.9.1
12.9.2
12.10 Liquidated damages
12.10.1
12.10.2
12.10.3
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
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 performance bond
Schedule 4 – Form of Principal’s bond
Schedule 5 – Form of Contractor’s bond in lieu of retentions
Schedule 6 – Not Used
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 and existing property insurance
Schedule 13 – Form of warranty
Schedule 14 – Agreement for off-site Materials
Schedule 15 – Certificate on Expiry
Schedule 16 – Final Completion Certificate
CONDITIONS OF TENDERING
SCHEDULE TO CONDITIONS OF TENDERING
GUIDELINES
INDEX
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Related Information
Similar Standards
NZS 3917:2025 Cover Conditions of contract for building and civilengineering – Fixed Term
Committee representation
Acknowledgement
Copyright
Contents
Referenced documents
New Zealand legislation
Other publications
Websites
Review of standards
Foreword
CONTRACT AGREEMENT
Contract Agreement Annexure 1 – List of Principal’s Requirements
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
2.6.1
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 Occupancy of the Site
5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
5.5.6
5.5.7
5.6 Separate Contractors
5.6.1
5.6.2
5.6.3
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
5.14 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
5.15 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
5.20.4
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
8.9 Principal-arranged existing property insurance
8.9.1
8.9.2
8.9.3
8.9.4
8.10 Principal’s option to insure public liability
8.10.1
8.10.2
8.10.3
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
9.4 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
10 CONTRACT WORKS PERIOD
10.1 Commencement
10.1.1
10.1.2
10.2 Date of Expiry
10.2.1
10.2.2
10.2.3
10.2.4
10.3 Certificate on Expiry
10.3.1
10.3.2
10.3.3
10.3.4
10.3.5
10.4 Occupancy following the Date of Expiry
11 DEFECTS LIABILITY
11.1 Remedying of defects
11.1.1
11.1.2
11.1.3
11.2 Searching for defects
11.2.1
11.2.2
11.3 Failure to remedy defects
11.3.1
11.3.2
11.3.3
11.4 Final Completion Certificate
11.4.1
11.4.2
11.4.3
11.5 Effect of Final Completion Certificate
11.5.1
11.6 Warranties and guarantees
11.6.1
11.6.2
11.6.3
11.6.4
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
12.4.4
12.4.5
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
12.9 Performance payments
12.9.1
12.9.2
12.10 Liquidated damages
12.10.1
12.10.2
12.10.3
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
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 performance bond
Schedule 4 – Form of Principal’s bond
Schedule 5 – Form of Contractor’s bond in lieu of retentions
Schedule 6 – Not Used
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 and existing property insurance
Schedule 13 – Form of warranty
Schedule 14 – Agreement for off-site Materials
Schedule 15 – Certificate on Expiry
Schedule 16 – Final Completion Certificate
CONDITIONS OF TENDERING
SCHEDULE TO CONDITIONS OF TENDERING
GUIDELINES
INDEX
Previous versions
NZS 3917:2025
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