NZS3910-2013.pdf

NZS 3910:2013New Zealand Standard Conditions of contract for building and civil engineering construction Superseding (in part) NZS 3910:2003 NZS 3910:2013 COMMITTEE REPRESENTATION d * This Standard was prepared under the supervision of the P 3910 Committee the Standards Council established under the Standards Act 1988. The committee consisted of representatives of the following organisations. (Co-opted Chair) Peter Degerholm Arbitrators’ and Mediators’ Institute of New Zealand Inc. Ze ala n Sherwyn Williams Andrew Brickell Association of Consulting Engineers New Zealand Inc. and Institution   of Professional Engineers New Zealand Inc. Beatrix Bergner Auckland Council Auckland Transport John Sutton Institute of Public Works Engineering Australasia (New Zealand) Bob Oldnall Insurance Council of New Zealand Inc. Simon Guillemin Local Government New Zealand ew Michael Weatherall New Zealand Contractors’ Federation Inc. and Roading New Zealand Inc. Colin Orchiston New Zealand Institute of Architects Garrett Butt New Zealand Institute of Building Surveyors Paul Maynard New Zealand Institute of Quantity Surveyors Paul Turner New Zealand Institute of Surveyors Rod Fulford New Zealand Specialist Trade Contractors’ Federation Richard Quinn New Zealand Transport Agency Peter Fehl Registered Master Builders’ Federation Curt Martin da rd sN Malcolm Abernethy Water New Zealand 915670 165.84.106.5 And observers from the following organisations. New Zealand Law Society an KiwiRail Ltd ACKNOWLEDGEMENTS Royal Institute of Chartered Surveyors St Registered Master Builders py rig ht Standards New Zealand gratefully acknowledges the contribution of time and expertise from all those involved in developing this Standard. The contribution of the Chair was made possible by Kensington Swan, and assistance with the division of the previously single Standard into three Standards was facilitated by Simpson Grierson. 6 46 07 87 22 42 14 Standards New Zealand gratefully acknowledges the financial support of the following organisations. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 •An Authorised User may download a single copy of a document and retain that copy on their personal computer for a maximum of five working days for their internal purposes. At the expiry of five working * days, the Document must be deleted from the Authorised User’s computer. d •Each Authorised User may print one hard copy of any Document for their internal purposes. These copies may not be used to build up a hard copy reference collection. A reference collection is defined as a Ze ala n collection comprising more than 10% of the number of the Documents within the Authorised User’s subscription portfolio. All hard copies of Documents must be destroyed on expiry of the subscription period. •Copyright subsists in each of the Documents and the full title to that copyright is at all times retained by Standards New Zealand. •Except as otherwise may be expressly permitted under the Copyright Act 1994 Authorised Users will undertake not to copy, modify, merge with other software or documents, or circulate electronically without ew securing the prior written permission of SNZ. . •Under no circumstance may a Document, whether in electronic or hard copy form, be sold, or transferred to a third party. sN •Under no circumstances may any Document be placed on a network of any sort without express permission of SNZ. •Authorised Users may not modify, adapt, translate, reverse engineer, decompile, disassemble or create rd derivative works based on the Documents. •Right of access to the Subscription Service is personal to Authorised Users and can not be transferred, da sold, leased, rented or loaned via a timesharing, service bureau or other arrangement. •All Authorised User identification information, including logins and passwords, are to be kept secret and 915670 165.84.106.5 an secure. •No Authorised User may attempt to damage, interfere or harm the SNZ website, or any network, or system py rig ht St underlying or connected to the Subscription Service. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Online Subscription Service PDF Terms & Conditions 6 46 07 87 22 42 14 106. NOTES 14 22 42 87 07 46 6 . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84.py Co rig ht 915670 165.5 ew sN rd da an St d Ze ala n * *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 106. NZS 3910:2013 Conditions of contract for building and civil engineering construction Superseding NZS 3910:2003 14 22 42 87 07 46 6 ISBN (Print) 978-1-77551-106-9 ISBN (PDF) 978-1-77551-107-6 . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84.py Co rig ht 915670 165.5 ew sN rd da an St New Zealand Standard d Ze ala n * *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 106.5 Date of issue ew sN rd da an St d Ze ala n * *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. NOTES Description 14 42 22 87 07 46 6 AMENDMENTS Entered by.84. Co py rig ht 915670 165.No. and date . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 6 Evidence of Contract 13 2.5 Computation of time 9 1.2 Definitions 1.4 Measure and value contract 11 Cost reimbursement contract 12 Local authority contracts.CONTENTS IFC * Committee representation IFC d Acknowledgement Copyright Ze ala n Referenced documents Latest revisions Review of Standards Foreword Outcome statement ew Contract Agreement General Conditions of Contract sN 1 INTERPRETATION 1.4 915670 165.2 20 COPYRIGHT © Standards New Zealand Nominated Subcontractors iii . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and road contracts 13 2.1 Contractor’s Bond 17 3.2 Lump sum contract 10 2.7 Documents prepared by the Engineer or Principal 14 2.84.3 General viii viii ix x 1 3 3 3 8 1.106.1 Application 1.1 General 20 4. and language St 2 IBC 1.2 Principal’s Bond 18 4 SUBCONTRACTS 20 4. currency.6 Duties of Engineer 9 da rd 9 10 2.3 an THE CONTRACT 2.9 Assignment 16 2.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 Type of contract 10 2.5 py viii Law. NZS 3910:2013 6 46 07 87 22 42 14 15 2.8 Documents prepared by the Contractor rig ht 2. contracts in public places.10 No waiver 16 3 BONDS 17 3. and Plant d 5.9 Materials.5 Contractor arranged public liability insurance 49 8. recording. NZS 3910:2013 6 46 07 87 22 42 14 INDEMNITY 44 7.6 Contractor arranged professional indemnity insurance 50 8.4 Possession of the Site 5.7 Suspension of work 42 6.1 Indemnity 44 INSURANCE 45 8. measuring. labour.17 Safety plan 34 rd 35 36 5.6 Certification 42 6.19 Traffic management plan 5.84.22 5.4 Inspection.3 Control of employees 5.6 Care of the works and Site 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.11 Compliance with laws 5.21 Advance notification 37 ENGINEER’S POWERS AND RESPONSIBILITIES 38 an Appointment of Engineer 38 6.1 General responsibilities 22 5.5 Removal and making good 41 6.18 Quality plan 7 23 5.3 Engineer’s Representative 39 6.7 Principal arranged insurances – General 51 8.5 8 24 5.12 Intellectual property * GENERAL OBLIGATIONS Ze ala n 5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.13 Underground and above-ground utilities 5.8 Principal arranged construction insurance 52 8. and testing 40 6.10 Programme 27 28 29 30 33 sN 34 5.8 Setting out 5.2 Contractor’s Representative 23 5.1 rig ht py iv 25 26 33 915670 165.9 Principal’s option to insure public liability 53 COPYRIGHT © Standards New Zealand .2 Role of Engineer 38 6.20 As-built drawings and operation and maintenance manuals 36 da 5.3 Contractor arranged construction insurance 47 8.8 Engineer may instruct urgent work 43 St 6.1 General 45 8.5 Separate Contractors 5.7 Protection of Persons and property 5.106.15 Clearance of Site 6 23 32 ew 5.14 Treasure 5.4 Contractor arranged Plant insurance 48 8.16 Late supply by Principal 34 5.2 Contractor arranged insurances – General 46 8. 9 VARIATIONS 54 Variations permitted 54 9.1 General 79 79 13.3 Final Completion Certificate 66 11.1 Defects Notification Period da 11 ew 10.5 Warranties 67 rd 65 11.5 an 12 PAYMENTS 67 68 68 12.2 Variation orders 54 9. NZS 3910:2013 6 46 07 87 22 42 14 76 12.2 Engineer’s review 79 13.3 Valuation of Variations d * 9.1 Commencement 10.4 Arbitration 81 13.4 Daywork Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.11 Prime Cost Sums 78 12.2 Remedying of defects 11.2 Due Date for Completion 10.4 Practical Completion Certificate 10.3 Retention monies 71 12.3 Extension of time 10.4 Effect of Final Completion Certificate 66 11.5 10 Unforeseen physical conditions TIME FOR COMPLETION 10.12 Contingency sums 78 12.1 9.6 Effect of Final Payment Schedule 75 12.5 Suspension during dispute 82 13.2 Progress Payment Schedules 69 12.1 Contractor’s payment claims 12.4 Final payment claim 72 12.7 Occupancy by the Principal sN DEFECTS LIABILITY 58 59 60 60 60 60 62 63 63 64 65 65 11.106.6 Guarantees 915670 165.7 Interest 76 rig ht St 12.5 Damages for late completion Ze ala n 9.3 Mediation 80 13.8 Cost fluctuations py 55 11.9 Provisional Sums 77 12.6 Award of interest 82 COPYRIGHT © Standards New Zealand v .84.6 Bonus for early completion 10.5 Final Payment Schedule 73 12.10 Provisional Items 77 12. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.13 Goods and services tax 78 13 DISPUTES 13. 1 General Appendix A Cost fluctuation adjustment by indexation B Contracts in public places and road contracts ew Schedules to General Conditions of Contract 85 87 87 88 90 Special Conditions of Contract – Specific Conditions of Contract 2 Special Conditions of Contract – Other Conditions of Contract 103 3 Form of Contractor’s performance bond 104 4 Form of Principal’s bond 106 5 Form of Contractor’s bond in lieu of retentions 108 6 Form of Producer Statement – Construction 110 7 Information on Contractor arranged construction insurance 111 8 Information on Contractor arranged Plant insurance 113 9 Information on public liability insurance 115 10 Information on Contractor arranged motor vehicle insurance 117 11 Information on Contractor arranged professional indemnity insurance 119 12 Information on Principal arranged construction insurance 120 13 Form of Contractor (or Subcontractor) warranty 123 14 Agreement for off-site Materials 126 15 Practical Completion Certificate 130 16 Final Completion Certificate 131 St an da rd sN 1 rig ht 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.FRUSTRATION AND DEFAULT 83 14.2 Default by the Contractor 84 * 14 SERVICE OF NOTICES 15.84.3 Default by the Principal 91 Conditions of tendering 101 Interpretation 6 46 07 87 22 42 14 vi 132 102 Issue of documents 132 103 Tenderers to inform themselves 132 104 Ambiguities in Tender Documents 132 105 Submission of tenders 133 106 Acceptance of tender 134 107 Tender evaluation 134 108 Notification of acceptance 134 Schedule to conditions of tendering 135 py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5 Ze ala n 15 d 14. NZS 3910:2013 COPYRIGHT © Standards New Zealand .1 Frustration 83 14.106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 167 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.84. NZS 3910:2013 COPYRIGHT © Standards New Zealand vii .106.Guidelines Interpretation 137 G Section 2 The Contract G Section 3 Bonds G Section 5 General obligations G Section 6 Engineer’s powers and responsibilities 142 G Section 7 Indemnity 143 G Section 8 Insurance G Section 9 Variations G Section 10 Time for completion G Section 11 Defects liability G Section 12 Payments G Section 13 Disputes G Section 15 Service of notices G Schedule 14 Agreement in respect of off-site Materials * G Section 1 sN ew Ze ala n d 138 140 140 143 150 153 155 157 162 164 164 General aid to Valuation of Variations Worked examples da Index rd Flow chart 171 174 6 46 07 87 22 42 14 py rig ht St an 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.govt. Statistics New Zealand Websites www. Private Bag 2439.govt. They should be sent to the Chief Executive.nz py Reserve Bank of New Zealand 6 46 07 87 22 42 14 LATEST REVISIONS Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. viii COPYRIGHT © Standards New Zealand . Standards New Zealand.REFERENCED DOCUMENTS * In this Standard reference is made to the following: Ze ala n d New Zealand Standards Conditions of contract for building and civil engineering construction – Design and construct NZS 3917:2013 Conditions of contract for building and civil engineering construction – Fixed term NZS 4202:1995 Standard method of measurement of building works NZS 4224:1983 Code of practice for measurement of civil engineering quantities ew NZS 3916:2013 Arbitration Act 1996 Cadastral Survey Act 2002 sN New Zealand legislation Construction Contracts Act 2002 rd Forest and Rural Fires Act 1977 Goods and Services Tax Act 1985 da Health and Safety in Employment Act 1992 Personal Property Securities Act 1999 915670 165. NZS 3910:2013 The users of this Standard should ensure that their copies of the above-mentioned New Zealand Standards are the latest revisions.nz New Zealand legislation www. Amendments to referenced New Zealand and Joint Australian/New Zealand Standards can be found on www.standards.govt.106. Statistics New Zealand rig ht Producers Price Index.stats.rbnz.5 an Property Law Act 2007 St Other publications Labour Cost Index. REVIEW OF STANDARDS Suggestions for improvement of this Standard will be welcomed.co.nz Statistics New Zealand www.nz. Wellington 6140.legislation.84. (g) The addition of new Schedules.5 rd During the development of the Standard. It was decided that this ‘limited technical review’ would focus only on these key areas. most recently in 2003. including forms of warranty. safety plans. da (a) (b) NZS 3916 Conditions of contract for building and civil engineering – Design and construct. ‘Superseding (in part) NZS 3910:2003’ on the cover of this Standard means the revised provisions of NZS 3910:2003 are now distributed across the new suite of Standards: NZS 3917 Conditions of contract for building and civil engineering – Fixed term. and traffic management plans. NZS 3910 Conditions of contract for building and civil engineering construction. derived from provisional Standard NZS 623P:1984 which was a radical rewrite of the previous Standard NZS 623:1964. engineering. and analysis completed by the Engineering Leadership Forum. (f) More workable provisions relating to payment claims and Payment Schedules.FOREWORD Ze ala n d * Contracts that are comprehensive but at the same time easy to understand are important in today’s technical and highly competitive building and construction environment. The Standard has undergone regular revisions over the past 25 years. New Zealand’s building. construction. The Standard contains essential commercial provisions designed to allocate risk fairly and is aligned with the requirements of the Construction Contracts Act. off-site Materials agreement and certificates of Practical and Final Completion.84. (c) 6 46 07 87 22 42 14 Provision for advance notification of matters likely to affect Cost or time. COPYRIGHT © Standards New Zealand ix . quality plans. St Together these three Standards supersede NZS 3910:2003. sN ew NZS 3910 was first published in 1987. In addition.106. py (d) Updated insurance provisions. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. (c) an 915670 165. The new NZS 3910:2013 contains a number of changes or new features. a scoping meeting held in March 2011 identified key areas of the 2003 Standard that required review. Following feedback from the sector over recent years. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. resulting in a Standard that is clearer and has a reduced need for extensive special conditions. and infrastructure industries rely on NZS 3910 Conditions of contract for building and civil engineering construction to ensure that their contracts are suited to New Zealand’s industrial and legislative scene. including: Additional provisions relating to cost reimbursement contracts. the guidelines have been completely re-written and no longer have any contractual status. the committee concluded that it should be published as three tailored Standards. rig ht (a) (b) More specific provisions relating to programmes. NZS 3910:2013 (e) Clearer provisions for valuing Variations. and Contractors to quickly establish contractual arrangements that deliver a wide variety of building and civil engineering projects. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 x COPYRIGHT © Standards New Zealand .84.106. Engineers.OUTCOME STATEMENT da rd sN ew Ze ala n d * This Standard enables Principals. Contracts based on this Standard will reflect fair risk allocation between the parties.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 6 46 07 87 22 42 14 py rig ht St an 915670 165. for example da (c) 915670 165. py (f) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.* CONTRACT AGREEMENT CONTRACT FOR d (Contract name) CONTRACT NUMBER Ze ala n (Number) THIS AGREEMENT is made on 20 BETWEEN (‘the Contractor’) AND (‘the Principal’) IT IS AGREED as follows: The Contractor shall carry out the obligations imposed on the Contractor by the Contract. 4. Each party agrees to the terms and conditions as set out in the Contract. The Principal shall pay the Contractor the sum of $ or such greater or lesser sum as shall become payable under the Contract together with goods and services tax at the times and in the manner provided in the Contract.5 an correspondence or minutes or pre-award meetings dealing with tender tags.106.84. The Contract comprises the following documents: This Contract Agreement. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. (j) Drawings issued prior to the Date of Acceptance of Tender. rig ht St (d) 6 46 07 87 22 42 14 Schedule 1: Special Conditions of Contract – Specific Conditions of Contract. 2. (e) Notices to tenderers (Give details with dates). 3. (k) The Schedule of Prices. (i) Specifications issued prior to the Date of Acceptance of Tender. (h) The General Conditions of Contract NZS 3910:2013 (including other Schedules). The following post-tender documents (Identify any agreed post-tender documents to be included. rd (a) sN ew 1. (b) The notification of acceptance of tender or award of Contract. (g) Schedule 2: Special Conditions of Contract – Other Conditions of Contract. NZS 3910:2013 (Select if NOT applicable) COPYRIGHT © Standards New Zealand 1 . and so on): The Contractor’s tender. Ze ala n Authorised Signatory of Contractor ew SIGNED BY Authorised Signatory of Principal da rd sN SIGNED BY 6 46 07 87 22 42 14 py rig ht St an 915670 165.(l) The Schedule to the Conditions of Tendering.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. This Contract supersedes all prior negotiations. and warranties. NZS 3910:2013 2 COPYRIGHT © Standards New Zealand . This Contract shall constitute the entire agreement between the parties. and 5.84. The following additional documents (Identify any additional documents to be included): d (n) * (m) The Conditions of Tendering.106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. representations. except insofar as the same are expressly incorporated herein. 9.106.7.84.3. NOTE – See 1.5 As defined in the Construction Contracts Act The value determined in accordance with 9.5. or the documents which constitute the Contract under 2. Definitions rd 1.2 Adjudication Adjudicator’s Determination da St Base Value As defined in the Construction Contracts Act an 915670 165.1 ew 1 INTERPRETATION Application sN This section shall apply to the Contract except where inconsistent with the context.10. 2. NZS 3910:2013 .3. 9.4 Contract The documents referred to in the Contract Agreement as comprising the Contract. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1 rig ht Comprehensive Programme py Contract Agreement 6 46 07 87 22 42 14 The written agreement for the fulfilment of the Contract signed by the Principal and the Contractor Contract Price The sum provided in the Contract as payable for the completion of the Contract Works calculated in accordance with 2.6.1 on singular including the plural.4 as applicable. or 2.Ze ala n d * Conditions of contract for building and civil engineering construction GENERAL CONDITIONS OF CONTRACT 1.3.3.6.3.8.3. subject to such adjustments as are provided for in the Contract Contract Works The works including Temporary Works to be executed in accordance with the Contract COPYRIGHT © Standards New Zealand 3 General conditions New Zealand Standard Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. as the case may be As defined in 5.2. or 9. 1 Contractor’s Representative The natural person appointed under 5. or modification of.3. and includes the executors.1 07 87 22 42 14 The professional engineer.1 Final Completion Certificate A certificate issued under 11. The Engineer shall not be a body corporate or a firm Engineer’s Representative The natural person appointed under 6.5 The Drawings included in the Contract together with any additions to.3 which may be in the form of Schedule 16 Final Payment Schedule As defined in 12. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 COPYRIGHT © Standards New Zealand . in the absence of any such written notification.1 da Defects Notification Period 915670 165.The Person whose tender has been accepted by the Principal or the Person who has been so named in the Contract.4 applies rd sN ew Ze ala n d * Contractor As defined in 11. administrators. or on behalf of the Contractor. and which have fulfilled any requirement in the Contract for preparation and review of such Drawings prior to their issue for construction rig ht St an Drawings Due Date for Completion py Engineer Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2.1 to act as Engineer to the Contract. and successors of the Contractor Contractor’s Bond The bond or any replacement bond referred to in 3. such Drawings approved and notified to the Contractor and such other Drawings as may from time to time be supplied by the Engineer to the Contractor for the purpose of the Contract.84.2. or other one natural person named or identified in the Special Conditions or such other one natural person as may be subsequently appointed by the Principal under 6. architect. the date of the Contract Agreement Day When used to express a period of time means Working Day Daywork Means work to which 9. surveyor. Drawings also include those that have been prepared by.106.1 Cost Includes expense or loss and overhead cost whether on or off the Site Date of Acceptance of Tender The date on which the successful Contractor is notified in writing that its tender or other offer is accepted or. NZS 3910:2013 4 6 46 As defined in 10. financial. after deduction of trade discounts and exclusive of the Contractor’s On-site Overheads. and overhead expenses incurred in the Contractor’s head office or other established offices. or things (other than Plant) required for use in the Contract Works Month A calendar Month Net Cost The reasonable actual or assessed expense or direct cost to the Contractor. NZS 3910:2013 . Off-site Overheads. 6 46 07 87 22 42 14 (c) Profit.106.5 da rd Nominated Subcontractor A Person other than the Contractor who is nominated by the Principal or the Engineer under 4. (b) Executive direction and supervision by principal officers of the Contractor not assigned in the ordinary way to the Contract.2 The following expenses or losses not incurred on the Site which are required for the general overall running of the Contractor’s business. goods. other than return on investment on Plant which would normally be recovered in hire rates for Plant COPYRIGHT © Standards New Zealand 5 General conditions These standard ‘Conditions of contract for building and civil engineering construction’ comprising all of sections 1 to 15 and Appendices A and B and Schedules 3 to 16 * General Conditions Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.GST Invoice A tax invoice for the purposes of the Goods and Services Tax Act Materials Any raw or manufactured material.84. and which are not required for the carrying out of the Contract Works or for off-site manufacturing or fabrication work by the Contractor: (a) General administrative.4 d Ze ala n ew sN Off-site Overheads and Profit py rig ht St an 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1. plus return on investment in Plant. and Profit Nominal Deductible The amount of any deductible or excess to be borne by the Contractor as described in 8. 4 which may be in the form of Schedule 15 Prime Cost Sum As defined in 12.84. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. or organisation whether corporate or not All appliances. and ablution facilities required for the Contract Works as originally specified an 915670 165. firm. administrators. temporary buildings. company. excluding working foremen and leading hands.On-site Overheads Ze ala n d * The following expenses or losses incurred by the Contractor for the general overall running of the Contract Works (excluding those normally covered by Subcontractors or suppliers) and which are not readily identified with one particular work item: Remuneration and expenses for management. protective clothing. electrical supply. operation. and surveying and office equipment. Such facilities shall include any office and shelter buildings. office equipment and communications. and successors COPYRIGHT © Standards New Zealand . roads. da rd (d) The normal provision. and equipment of whatsoever nature required for carrying out the Contract Works but not intended to be incorporated in the Contract Works 6 46 07 87 22 42 14 Practical Completion As defined in 10. body of persons. These shall include all fringe benefits and fringe benefit tax for the staff concerned. routine field engineering and surveying.4. procurement and supervisory staff.106. fencing. their transportation. and maintenance of the Site and Temporary Works facilities. administration. waste management.1 Practical Completion Certificate A certificate issued under 10. ew (a) sN (b) Premiums for insurances. NZS 3910:2013 A natural person and a partnership. off-site and on-site accommodation. housing. assigned in the ordinary way to the Contract whether on a full-time or part-time basis.5 Payment Schedule py Plant 6 Any Payment Schedule provided under the Contract including a Progress Payment Schedule and the Final Payment Schedule St rig ht Person Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. (c) Contractor’s Bond. drainage. on-site water supply.11 Principal The Person named as such in the Special Conditions and includes its executors. the Contractor and which have fulfilled any requirement in the Contract for preparation and review of such documents prior to their issue for construction 7 General conditions The bond or any replacement bond referred to in 3.5 The land and other places on or over or under which the Contract Works are to be carried out together with any other places made available to the Contractor by the Principal conditionally or unconditionally for the purposes of the Contract Schedules 1 and 2. Provisional Items. such documents approved in writing by the Engineer and notified to the Contractor.Producer Statement Any producer statements required by the Contract or by the relevant authority for the design or construction of the Contract Works in the form of Schedule 6 or otherwise Progress Payment Schedule As defined in 12.84. or delete from. or modifications of.106. and contingency sums Separable Portion Any part of the Contract Works specified in the Special Conditions or agreed between the parties as being a Separable Portion required to be completed separately from the remaining Contract Works d Ze ala n ew rig ht Special Conditions Specifications py rd sN St an Site COPYRIGHT © Standards New Zealand As defined in 5. and such other documents as are included in the Contract in a section which is described as Special Conditions and which add to. Provisional Sums. rates.2 * Principal’s Bond Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 da Separate Contractors 915670 165. Specifications also include documents containing descriptions of Materials and workmanship and other details of the Contract Works which have been prepared by. and other additions or modifications supplied by the Engineer to the Contractor for the purpose of the Contract. Prime Cost Sums. together with any additions to.9 Schedule of Prices Any Schedule included in the Contract which shows prices payable for sections or items of the Contract Works and may also include quantities.5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. or modify these General Conditions 6 46 07 87 22 42 14 Documents included in the Contract containing descriptions of Materials and workmanship and other requirements for carrying out the Contract Works. or on behalf of.2 Provisional Item As defined in 12.10 Provisional Sum As defined in 12. NZS 3910:2013 . but which are required for the execution of the Contract Works Tender Documents The documents which are issued to prospective tenderers Variation A Variation to the Contract Works pursuant to 9.3. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 and any other matter which is stated to be a Variation or to be treated as a Variation by the Contract Working Day A calendar day other than any Saturday. not being part of the Contract Works to be taken over by the Principal. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. feminine.3.84. public holiday.Any Person who contracts with the Contractor to design. or supply part of the Contract Works on behalf of the Contractor and includes a Nominated Subcontractor Temporary Works Works of any kind.3. 915670 165. and words importing the masculine. carry out. or any day falling within the period from 24 December to 5 January both inclusive.2 1. NZS 3910:2013 8 COPYRIGHT © Standards New Zealand . 6 46 07 87 22 42 14 py rig ht The headings to clauses are for convenience only and shall not affect their interpretation. and neuter shall include all three.1 da Where the context so requires.106.5 an 1. Sunday.3 d * Subcontractor 1.3 St Cross-references to other clauses or clause subdivisions within these General Conditions quote the number only. irrespective of the days on which work is carried out Ze ala n ew sN General rd 1. words importing the singular shall include the plural and vice versa. d * A reference to any Act or Regulation shall include all subsequent Acts or Regulations in amendment of. the period shall.3 6 46 07 87 22 42 14 1. 1. Duties of Engineer The duties which the parties to the Contract Agreement intend to be carried out by the Engineer are set out in this document.5 py All communications between the Principal.84.5 da rd For a number of clauses guidelines have been written.3. and required by the Engineer and the corresponding nouns shall be similarly construed. unless a contrary intention appears. Ze ala n 1. currency.7 Words and phrases that are defined in 1. and the Engineer shall be in the English language. and to highlight some clauses that impose particular obligations on a party under the Contract. the Contractor.4. ‘approved.3. act. instructed.’ ‘directed. and the consequences of any failure by the Engineer to carry out those duties are referred to in 6. St 1. directed.4.4.106. The guidelines are not part of the Contract between the parties. or substitution for. ew 1. Computation of time 1. All prices and rates are stated exclusive of goods and services tax. or event is prescribed or allowed for any purpose. the same. be determined as exclusive of that day or the day of that act or event. NZS 3910:2013 .3.’ ‘instructed’.2 have capital initial letters.2 rig ht All prices and payments made under the Contract shall be in New Zealand currency and payable in New Zealand. sN 1. Law. ‘constructed’ includes ‘carried out’ and ‘construction’ includes ‘carrying out’.6 Where the context so requires.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5 Except where inconsistent with the context. Their purpose is to help users understand the principles behind the substantive clauses.2.4 915670 165. COPYRIGHT © Standards New Zealand 9 General conditions 1.4. 1. and language an 1. and ‘required’ mean respectively approved. which is to be added and paid where appropriate. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.6 Where any period of time from a given day.1 The Contract shall be governed by New Zealand law.8 1.3.3. (b) Any omission or inaccuracy in the compilation. 2. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 If a significant discrepancy has occurred it shall be treated as a Variation. The Engineer shall issue a written direction to resolve the discrepancy. The Principal does not warrant that any quantities included in any Schedule of Prices are complete or accurate.1. or a measure and value contract. 2.2.2 THE CONTRACT * Type of contract d 2.2.2.2.2. or 2. 2. discrepancy shall mean: (a) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4 respectively.2. For the purposes of 2.1 2.106. 2.2. 10 COPYRIGHT © Standards New Zealand . and shall be governed by 2. or 2. The amended prices shall then become the Schedule of Prices referred to in 2.84. 2. either as to measurement or description not being an inconsistency for which the Contractor is responsible.3. 2.2 915670 165.4 6 46 07 87 22 42 14 py If any discrepancy is identified in the Schedule of Prices the Engineer or the Contractor shall so notify the other.1 rd In a lump sum contract the Contract Price shall be the sum stated in the Contract subject to such adjustments as are provided for in the Contract.1.3 rig ht St If the total of the prices in the schedule differs from the lump sum tendered then the scheduled prices shall be adjusted by the Engineer after consultation with the Contractor to agree with the tendered lump sum. 2. Lump sum contract sN 2.3. and the Principal shall pay the Contract Price to the Contractor as provided in 2. or a cost reimbursement contract as stated in the Special Conditions.1 Ze ala n The Contract shall be a lump sum contract.2.2.4 as applicable. preparation or copying of the quantities included in the Contract not being an omission or inaccuracy for which the Contractor is responsible.5 an da Any Schedule of Prices included in the Contract shall be used as a basis for computing Payment Schedules and for valuing Variations and for no other purpose.2 ew The Contractor shall carry out the work described in the Contract and fulfil its obligations thereunder.2 2. NZS 3910:2013 Any inconsistency between the Drawings or Specifications on the one hand and the Schedule of Prices on the other.2. 1 Ze ala n d In a measure and value contract the Contract Price shall be calculated according to the measured quantity.5 If the tendered schedule contains any errors in extension of unit rates or in summation so as to vary the tendered sum then the unit rates shall be adjusted by the Engineer after consultation with the Contractor to agree with the tendered sum.2 ew The Contractor shall be deemed to have checked the accuracy of the descriptions of the various items in the Schedule of Prices and to have allowed in its price to cover the whole range of work included within those items. 2. shall be accepted as the correct measurement.3. The adjusted rates shall then become the Contract rates for payment in accordance with 2. Where an item of work has clearly been omitted by error from the Schedule of Prices. NZS 3910:2013 . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. The Contractor shall be entitled to attend in person or be represented by an agent and to assist in such measurement. unless shown to be incorrect. or approved by the Engineer. or on behalf of.1. Where the actual quantity of any single item differs from that given in the Schedule of Prices to such an extent as to make the scheduled price for that or any other item unreasonable then the change in quantity shall be treated as a Variation. as determined by the Engineer. subject to such adjustments as are provided for in the Contract. 2.84.4 St an Any quantities given in the Schedule of Prices are provided for the purpose of evaluating tenders and may be taken as a reasonable assessment of the quantities involved in the Contract Works.3.3. 6 46 07 87 22 42 py 14 COPYRIGHT © Standards New Zealand 11 General conditions 2.3.3.3. rig ht 2. of each item of work carried out at the rates set out in the Schedule of Prices.5 da rd sN The Engineer shall give notice to the Contractor of his or her intention to measure any part or parts of the Contract Works.3 915670 165. the work omitted shall be treated as a Variation. as where other items of a similar kind have been included. If the Contractor does not attend or neglects or omits to send an agent then the measurement made by.Measure and value contract * 2.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 2.106. 4. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.4.3.3. an allowance (if any) for On-site Overheads and/or Off-site Overheads and Profit at the relevant percentages stated in the Special Conditions. and an updated estimate of the final Contract Price. an (c) 915670 165. COPYRIGHT © Standards New Zealand . 6 46 07 87 22 42 py 14 2.1. An allowance for On-site Overheads and/ or Off-site Overheads and Profit shall only be made to the extent that the relevant rate does not include allowance for such amounts.1. including remedying defects caused by the Contractor. Materials.106.2. or to the extent incurred. the Contractor shall submit an indicative estimate of the Contract Price to the Engineer prior to commencement of the Contract Works. and Subcontractors used in the execution of the Contract Works.4.4.1.84.4. with an explanation for any differences.4. and/or Where and to the extent that the Contract contains rates in respect of any item.4. due to a default by the Contractor.4 Cost reimbursement contract * 2.4.2. a reconciliation of the claim against estimates submitted by the Contractor in relation to the work concerned. include: (a) Full details of amounts claimed under 2. in addition to the requirements of 12. Plant. ew (c) 2. recorded in accordance with 9.4. 2. (b) Where an indicative estimate is required under 2. or St 2.4 Where required by the Special Conditions. excluding any costs referred to under 2. or the Contractor not complying with the requirements of the Contract.3 rig ht The Contractor shall maintain and allow the Engineer to inspect the records required under 2.1 The Net Cost of the quantities of labour. Was incurred by the Contractor in preparing a claim against the Principal under Section 13 or in any associated dispute resolution proceedings (but without prejudice to the Contractor’s entitlement to the recovery of any costs pursuant to those dispute resolution proceedings). NZS 3910:2013 12 Each payment claim for payment for cost reimbursement work shall.2 (a) sN The Contractor shall not be entitled to be reimbursed any cost which: Is not justified by the Contractor’s records or was not reasonably and actually incurred in the carrying out of the Contract Works. those rates shall be used in lieu of the Net Cost.5 da rd (b) Was incurred.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4. and Ze ala n (a) d In a cost reimbursement contract the Contract Price shall be determined as follows: (b) Subject to (c).4. 6. 915670 165. 2. Appendix B shall apply. da 2.2 The Principal has certain regulatory functions in its capacity as a local authority outside the Contract.Local authority contracts. (c) Within 10 Working Days of receipt of the documents or amended documents. contracts in public places. COPYRIGHT © Standards New Zealand 13 General conditions 2. the Contractor shall execute the Contract Agreement in triplicate and shall deliver all three copies to the Principal. 2. constitute the Contract between them. 2. The documents shall then be amended as may be found necessary.106.2 shall apply unless otherwise excluded. the Principal shall have the Contract Agreement prepared in triplicate. the Principal shall execute the Contract Agreement in triplicate. together with the other documents intended to form part of the Contract.5 St 2. and road contracts * 2.6 sN Where the Contract is stated in the Special Conditions to be a road contract. attaching to each copy correct copies of all the documents forming the Contract.2 Unless the Special Conditions require otherwise the Contract Agreement shall be executed by the Principal and the Contractor as follows: Within 10 Working Days from the Date of Acceptance of Tender. it shall within 10 Working Days after delivery advise the Principal in writing of the matters in which the documents are considered to be defective.5. NZS 3910:2013 .5. clauses B1 and B2 of Appendix B shall apply. (d) Within 10 Working Days of receipt of the documents from the Contractor.84.4 Evidence of Contract rd 2.5. and shall have all copies delivered to the Contractor.5.1 an Unless and until the Contract Agreement is executed by the parties.5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.6. The Principal shall be deemed not to be acting in the capacity of Principal under this Contract when exercising these functions in good faith. the provisions of 2.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. the tender or other offer and its acceptance between the Contractor and Principal shall. (e) One of the executed copies of these documents shall thereupon be returned to the Contractor and one delivered to the Engineer.1 Ze ala n d Where the Contract is stated in the Special Conditions to be a local authority contract. rig ht (a) 6 46 07 87 22 42 14 py (b) If the Contractor considers that the documents delivered to it do not correctly describe the Contract for which its tender was accepted.3 ew Where the Contract is stated in the Special Conditions to be a contract in a public place. or by an express provision in any correspondence which has been identified as a Contract document.106. If compliance with the explanations or instructions causes delay in the completion of the Contract Works or additional Cost to the Contractor which in either case the Contractor could not reasonably have foreseen.5 an 2. 2.1 (a) ew The Engineer shall on request by the Contractor supply without charge sets of copies of the Contract and other Drawings and Specifications that have been prepared by or on behalf of the Principal for the carrying out of the Contract Works. 2.5 The Engineer may clarify or further define the Contract Works by issuing to the Contractor instructions. and Drawings in addition to those included in the Contract.3 rig ht St The General Conditions shall not be varied or modified by the Drawings or the Specifications or the Schedule of Prices unless the change is described in. information. py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2 da rd The Contractor shall maintain on Site at least one copy of the Drawings and Specifications and the Schedule of Prices marked to show where superseded or modified together with at least one copy of all amended Drawings.7. The Contract shall be provided in the electronic form stated in the Special Conditions. The Engineer shall supply the explanations or supplementary instructions to the Contractor within a reasonable time after the receipt of notice from the Contractor. the explanation or instruction shall be treated as a Variation. All such documents shall remain the property of the Principal and shall not be copied or used for any purpose other than the Contract.7.7. NZS 3910:2013 2. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. documents. or on behalf of.3 Documents prepared by the Engineer or Principal Ze ala n 2. together with: A signed set.2. Ambiguities or omissions shall not invalidate the Contract. or clearly identified by reference in.84.7 d * Failure by either party to execute the Contract Agreement within the time provided shall be a default under Section 14.7.6. 2. and Drawings. The documents comprising the Contract shall in all other respects be taken as mutually explanatory.7. 14 COPYRIGHT © Standards New Zealand . the Principal are considered to be ambiguous or unclear. documents. 915670 165. supplementary Drawings. the Contractor may request and the Engineer shall issue explanations or supplementary instructions. (c) sN (b) Two hard copies. or directions as may be issued by the Engineer from time to time during the Contract. the Special Conditions.4 6 46 07 87 22 42 14 Where the Contract or any of the other Drawings or Specifications which have been prepared by. The Contractor shall be bound by such additional instructions. and Two hard copies of any additional consent documents. 8 ew If the Contractor suffers delay in completion of the Contract Works or incurs additional Cost by reason of the late issue by the Engineer or Principal of any instructions.Ze ala n d * If the Contractor reasonably requires further instructions.7. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Drawings. COPYRIGHT © Standards New Zealand 15 General conditions 2.4 Where the Engineer considers the Drawings or Specifications issued by the Contractor are ambiguous or unclear. the Contractor shall issue Drawings and Specifications. documents.8.106. 2. documents. or Specifications under 2.1 da rd Where required by the Contract.5 an 2.84. 915670 165. Ambiguities and discrepancies in Drawings or Specifications prepared by. NZS 3910:2013 .7. 42 py 14 2.8. or where applicable to design for which the Contractor is responsible. such issuing shall be treated as a Variation. The Contractor shall be bound by such additional Drawings and Specifications. and that delay or additional Cost could not reasonably have been foreseen by the Contractor when tendering. documents. The Engineer shall supply the further instructions. Prior to their issue for construction these Drawings and Specifications shall have fulfilled any requirement in the Contract for the preparation and review of such documents. If the Contractor suffers delay in completion of the Contract Works or incurs additional Cost by reason of the issuing to the Contractor of instructions.5. 2. All such documents shall remain the property of the Contractor and shall not be copied or used for any purpose other than the Contract. or on behalf of. 2.7.3 6 46 07 87 22 The Contractor shall maintain on Site at least one copy of Drawings and Specifications as may be issued by the Contractor. or of a Variation ordered by the Engineer. marked to show where superseded or modified. documents. and Drawings to the Contractor within a reasonable time after the receipt of notice from the Contractor. The documents shall also be provided in the electronic form stated in the Special Conditions. or Drawings.7 Documents prepared by the Contractor sN 2. the Contractor shall be resolved by the Contractor and shall not be treated as a Variation. and Drawings from the Engineer at any time the Contractor shall give notice in writing of this requirement to the Engineer. or on behalf of. Any resolution of an ambiguity or discrepancy by the Contractor shall not alter any requirements of the Contract. except with the agreement of the Engineer.2 rig ht St The Contractor shall on request by the Engineer supply without charge hard copy sets of copies of Drawings and Specifications which have been prepared by. the Contractor as provided in the Special Conditions. the Engineer may request and the Contractor shall issue explanations or supplementary Drawings or Specifications.6 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.8.8. or do not comply with the Contract. that late issue shall be treated as a Variation. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2.9 Assignment * 2.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. sN 2.9.2 The assignment or transfer of shares in or the restructuring of the Contractor so that the effective control of the Contractor passes to Persons other than those holding it at the date of this Contract will be an assignment of this Contract for the purpose of this clause. 2. no assignment shall release or discharge the assignor from any liability or obligation under this Contract.84. 2.10 No waiver da rd Neither party shall be considered to have waived or released any of its rights under the Contract except by agreement in writing between the parties.3 ew Unless specifically stated to the contrary in any consent to an assignment.9.9. 6 46 07 87 22 42 14 py rig ht St an 915670 165.106. NZS 3910:2013 16 COPYRIGHT © Standards New Zealand . Such consent shall not be unreasonably withheld or delayed.1 Ze ala n d Neither party shall assign the whole or any part of the Contract without the prior written consent of the other party. 1.106. Where any Contractor’s Bond contains an expiry date the Contractor shall provide a replacement bond no less than 1 Month prior to that date. 3.3 rd sN The form of the Contractor’s Bond shall not include an expiry date unless agreed by the Principal.4.1.6 The Contractor’s Bond may not be called up if: (a) The Contractor has carried out and fulfilled all the obligations of the Contractor under the Contract up to Practical Completion. The Contractor’s Bond shall be for the amount stated in the Special Conditions and shall be in the form set out in Schedule 3 and shall be executed by the Contractor and by the surety named in the tender or approved by the Principal.84. or (c) A Practical Completion Certificate has been issued for the whole of the Contract Works in accordance with 10. 3.5 an 3. the Principal shall deliver to the Contractor and to the Contractor’s surety a notice in writing stating that the Contractor and the surety are released from the Contractor’s Bond and shall return the original Contractor’s Bond to the Contractor.4 da No payment otherwise due under the Contract shall become payable until the Contractor and its surety have executed and delivered the Contractor’s Bond to the Principal.1. NZS 3910:2013 . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 915670 165.1 3.1 Ze ala n Clause 3.1.7 Within 5 Working Days after the Principal’s receipt of the Practical Completion Certificate for the whole of the Contract Works.* Contractor’s Bond d 3.1.7 has by then been issued by the Principal. rig ht 3.2. unless the notice required by 3.1. 6 46 07 87 22 42 14 py (b) The Contractor has paid to the Principal any damages sustained by the Principal for all defaults by the Contractor up to Practical Completion or the termination of the Contract. 3. COPYRIGHT © Standards New Zealand 17 General conditions 3 BONDS Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2 ew The Contractor shall within 2 Months of the Date of Acceptance of Tender provide the Principal with security in the form of a Contractor’s Bond.1 shall apply where a Contractor’s Bond is required by the Special Conditions.5 St If the Contractor’s Bond is not executed and delivered to the Principal within the required time then the Principal shall be entitled to treat such failure as a default by the Contractor under 14.1. 3.1. to ensure performance of the Contractor’s obligations under the Contract Agreement. 2 rig ht St an The Principal shall on the Date of Acceptance of Tender provide the Contractor with security in the form of a Principal’s Bond to secure compliance by the Principal with its obligations under the Contract. 3. It shall be in the form set out in Schedule 4 and shall be executed by the Principal and by the surety named in the Special Conditions or approved by the Contractor. The Principal’s Bond shall be for the amount stated in the Special Conditions. In the event that the Principal’s Bond is not executed and delivered to the Contractor within 20 Working Days after suspension of the Contract Works the Contractor shall be entitled to treat such failure as a default by the Principal under 14.3 If the Principal’s Bond is not executed and delivered to the Contractor within the required time the Engineer shall. 3.2 sN The Cost of obtaining any Contractor’s Bond shall be borne by the Contractor. to ensure performance of the Contractor’s obligations under the Contract.84. The replacement bond shall be executed by the Contractor and by the surety to the original bond or by another surety approved by the Principal. 3.2.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 3.10 Principal’s Bond rd 3.106.2.2 shall apply where a Principal’s Bond is required by the Special Conditions. 6 46 07 87 22 42 py 14 3.1. NZS 3910:2013 18 The Principal’s Bond may not be called up if the Principal has paid to the Contractor the Contract Price and any other monies payable to the Contractor under the Contract. Upon receipt of such replacement bond the Principal shall deliver to the Contractor and to the Contractor’s surety a notice in writing stating that the Contractor and the surety are released from the original bond.1.3.5 da Clause 3. on request by the Contractor in writing.8 Ze ala n d * Where the Principal contends that the Contractor has failed to perform its obligations under the Contract the Engineer shall make an estimate of the Cost of any remedial or other work outstanding and of any other liability on the part of the Contractor under the Contract Agreement.9 ew The Contractor may provide the Principal with a replacement bond in the form set out in Schedule 3.3. 3. COPYRIGHT © Standards New Zealand . General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2.2. suspend the Contract Works under 6.1. The Engineer shall notify the Principal and Contractor of the estimate. for the amount of the estimate.7.1 915670 165. 7 915670 165.8 6 46 07 87 22 42 14 py rig ht St The Cost of obtaining any Principal’s Bond shall be borne by the Principal. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 .2.2.84.2. 3. the Contractor shall forthwith notify the Principal the sum which it claims to be due and owing by the Principal under the Contract.106.5 da rd The Principal may provide the Contractor with a replacement bond for the amount of the sum so notified by the Contractor in the form set out in Schedule 4.Ze ala n d * Within 5 Working Days after receipt of payment in accordance with the Final Payment Schedule under 12. or otherwise payable as damages for breach of contract. Upon receipt of such replacement bond the Contractor shall deliver to the Principal and to the Principal’s surety a notice in writing stating that the Principal and the surety are released from the original Principal’s Bond. the Contractor shall deliver to the Principal and to the Principal’s surety a notice in writing either stating that the Principal and the surety are released from the Principal’s Bond or giving particulars of the respects in which the Contractor contends that the Principal has failed to perform the Principal’s obligations under the Contract or has otherwise failed to satisfy the conditions of the Principal’s Bond.2. 3. The replacement bond shall be executed by the Principal and by the surety to the original Principal’s Bond or by another surety approved by the Contractor.5 or after payment in accordance with the arbitrator’s award in the case of a dispute on the Final Payment Schedule.6 sN ew Where the Contractor contends that the Principal has failed to perform its obligations under the Contract Agreement.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. an 3. or has otherwise failed to satisfy the conditions of the Principal’s Bond. COPYRIGHT © Standards New Zealand 19 General conditions 3. 2 6 46 07 87 22 42 14 py rig ht The Contractor shall not be required to employ a Nominated Subcontractor which is not named in the Tender Documents if the Contractor has made reasonable objection to the Engineer within 10 Working Days of nomination against acceptance of the Nominated Subcontractor as a Subcontractor. The Contractor shall not otherwise subcontract any part of the Contract Works without the prior written consent of the Engineer whose consent shall not be unreasonably withheld. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1 4. and which includes reasonable provisions for: (a) 20 Indemnifying the Contractor for the liabilities in respect of subcontracted works for which the Contractor has contracted to indemnify the Principal.84. NZS 3910:2013 The Contractor shall not be required to employ a Nominated Subcontractor which declines to enter into an appropriate subcontract with the Contractor. 4.1.1.2 ew The Contractor may subcontract parts of the Contract Works to Subcontractors named in the Contractor’s tender.1. the nomination shall be made in the Tender Documents.2.3 Nominated Subcontractors rd 4. 4.5 4. An appropriate subcontract shall be one which imposes on the Nominated Subcontractor the obligations imposed on the Contractor towards the Principal in respect of the subcontract works. 4.1 da The Principal or the Engineer may nominate a Subcontractor to carry out work included within the Contract or to supply Materials or services required under the Contract.2 sN The subcontracting of any of the Contract Works shall not relieve the Contractor from any liability or obligation under the Contract. In such an event the Engineer shall make a fresh nomination unless it is agreed between the Engineer and the Contractor that the work shall be carried out by the Contractor or by some other Person under a separate contract with the Principal. COPYRIGHT © Standards New Zealand .1 Ze ala n The Contractor shall not enter into a single subcontract for the whole or substantially the whole of the Contract Works without the written consent of the Principal.106. Except where the work or supply is covered by a Provisional Sum. a Provisional Item.4 SUBCONTRACTS * General d 4. The Contractor shall employ the Nominated Subcontractor to carry out the nominated work or supply. St an 915670 165. or a Prime Cost Sum which is included in the Contract Price. 4.2.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2. 6 46 07 87 22 42 14 4. and agents. COPYRIGHT © Standards New Zealand 21 General conditions (b) Indemnifying the Contractor for claims in respect of negligence or default by the Nominated Subcontractor.2.5 915670 165.4 and the matter is not resolved within a reasonable time the Principal or the Engineer shall make a fresh nomination. or incurs additional Cost. its servants. the event giving rise to such delay or Cost shall be treated as a Variation. loss.4 applies and the Contractor consequently suffers delay in the completion of the Contract Works.7 py Where by reason of breach on the part of the Contractor a Nominated Subcontractor is entitled to treat the subcontract as at an end and elects to do so. Alternatively the Engineer and the Contractor may agree to the work being carried out by the Contractor or by another Subcontractor or by some other Person under a separate contract with the Principal.2. 4. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or Refuses to complete the work by reason of breach on the part of the Contractor. and delay incurred by the Principal. rd 4. 4. and (b) Repudiates its subcontract or makes default such that the Contractor is entitled to treat the subcontract as at an end. pursue a claim against the defaulting Subcontractor at the expense and for the benefit of the Principal.2. ew (a) Ze ala n d (d) Indemnifying the Contractor for liquidated or other damages or loss arising out of delays in the completion of the Contract Works attributable directly or indirectly to the Nominated Subcontractor.2. * (e) The submission of all disputes to arbitration.106. The Contractor shall. any consequent Cost.4 If a Nominated Subcontractor: Fails without reasonable grounds to enter into a subcontract with the Contractor within 10 Working Days of a written request to do so. NZS 3910:2013 .2. loss.5 an da Where notice is given to the Engineer under 4. sN (c) the Contractor shall notify the Engineer in writing.84. and delay incurred by the Contractor shall be borne by it and it shall indemnify the Principal against any consequent Cost. on the written request of the Principal.(c) Sequence of operations and completion times. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2.6 rig ht St Where paragraph (a) or (b) of 4. drawing.1.6 The Principal warrants that it has made available to the Contractor before the submission of the Contractor’s tender all information of which it is aware. 6 46 07 87 22 42 14 5.1 Ze ala n In carrying out the Contract Works the Contractor shall complete. or on behalf of.3 and 5. No comment. provided that the Contractor shall not be responsible for the design or specification of the Contract Works except as provided under 5.5 GENERAL OBLIGATIONS * General responsibilities d 5. transport. and monitoring of the design on or off the Site.5 da rd sN Where the Contract provides that the Contractor has a responsibility for design. and safety of all its Site operations and methods of construction.4 St an Where the Contractor undertakes the design of any part of the Contract Works the Contractor shall be responsible for carrying out such design with reasonable skill. on the nature of the physical conditions relevant to the Contract Works. the Principal.1. or approval by the Engineer or Principal shall relieve the Contractor of any responsibility for that part of the Contract Works. stability. NZS 3910:2013 22 COPYRIGHT © Standards New Zealand . care.4.106. 5. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. the design work shall include necessary investigation.1. 5. which has been obtained by or on behalf of the Principal or the Engineer for the purposes of the Contract. testing. or is to be inferred from the Contract.1. specification of Materials and workmanship. Temporary Works. The Contractor shall be responsible for the interpretation of all such information for the purposes of the Contract Works. review. and remedy defects in the Contract Works and provide all services. 5. unless otherwise provided in the Contract. and diligence. handover to the Principal.5 rig ht The Contractor shall be responsible for the adequacy.84. labour. Materials.1 5. design calculation. The Contractor shall undertake the design of the Temporary Works except to the extent that the Contract provides such design or provides that it is to be undertaken by. py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. The Principal makes no warranty as to the sufficiency or accuracy of such information. and everything whether of a temporary or permanent nature required so far as the necessity for the same is specified in.1. 5.3 915670 165.1.1.2 ew The Contractor shall comply with all proper instructions issued by the Engineer in relation to the Contract. Plant.1. 1 Ze ala n d The Contractor shall provide all necessary supervision during the Contract.7.2 py If the Principal does not give possession of the Site or any portion of the Site.4. An employee required to be removed shall not again be employed upon the Contract Works without the permission of the Engineer. 6 46 07 87 22 42 14 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. All work shall be carried out under the supervision of the Contractor’s Representative.5 5. incompetence. The Contractor shall appoint another competent natural person in place of the Person about whom the objection has been made. 915670 165.7. NZS 3910:2013 .84. the use of or appropriate rights in respect of any other property which it may choose to use for carrying out the Contract Works.1 rig ht The Principal shall give the Contractor possession of the Site on the date provided in the Special Conditions and if no such date is provided 10 Working Days after the Date of Acceptance of Tender.2.2.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. at its own Cost. 5.4 an da rd 5. the Engineer shall suspend the commencement of work on the Site or on that portion of the Site by notice in writing under 6.5 and 8.4.Contractor’s Representative * 5. subject to prior compliance with the Contractor’s and Principal’s obligations under 8. Such access may be limited by the Special Conditions.2 Control of employees The Engineer may object to and direct the Contractor to remove from the Contract Works any employee of the Contractor or of a Subcontractor in or about the execution of the Contract Works who by reason of serious misconduct.3 The Principal shall obtain authority for the Contractor to have the reasonable right of entry upon and do any act upon any adjoining property as may be necessary for the carrying out of the Contract Works.4. Possession of the Site St 5.2.3 sN ew The Engineer may at any time by notice in writing to the Contractor object on reasonable grounds to the continuance of any Person as the Contractor’s Representative. 5. Any Costs involved in obtaining such right shall be borne by the Principal. COPYRIGHT © Standards New Zealand 23 General conditions 5. in accordance with the Special Conditions. for any reason other than default of the Contractor in carrying out its obligations under the Contract. It shall have on the Site at all working times a competent representative who shall be one natural person only not being a body corporate or firm and whose name shall be notified to the Engineer in writing and who shall be authorised to receive on behalf of the Contractor any instructions from the Engineer or the Engineer’s Representative. or negligence in the proper performance of his or her duties is a danger to safety or welfare. The notice shall state the grounds upon which the objection is based. The Contractor shall procure for itself.106.5. 6 Separate Contractors rd 5.5.1 Where provided in the Special Conditions. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and shall ensure any inconvenience to occupiers is kept to a minimum as far as is reasonably practicable. 5.106.84.1. da 5. or use of.5 sN ew The Contractor shall make good as soon as practicable damage to any adjoining property arising out of the carrying out of the Contract Works. or public places.5. or with the condition of or access to.5 The Contract Works shall be carried out so as not to interfere unreasonably with the convenience of the public. If the Contractor suffers delay in the completion of the Contract Works or incurs additional Cost arising from the activity of Separate Contractors which is not otherwise provided for in the Contract. footpaths. NZS 3910:2013 24 COPYRIGHT © Standards New Zealand . The Principal shall ensure that in carrying out any such work any Separate Contractor shall in all respects comply with all reasonable requests from the Contractor. highways.4 Ze ala n d * The Contractor shall respect the rights of the adjoining property owners and occupiers and shall advise such Persons when access to property is required for the purposes of carrying out the Contract Works.5 rig ht 5.5.2) shall be treated as a Variation.2 in which event the making good (to the extent its necessity arises from any of the matters referred to in 7.4. The Contractor shall cooperate with the Separate Contractors and afford reasonable opportunities for the execution of their work. 6 46 07 87 22 42 py 14 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Such making good shall be carried out at the expense of the Contractor unless the damage arises from any of the matters referred to in 7. 5. public or private property. bridges.4.4.1. roads.2 The Contractor shall afford all reasonable facilities for Separate Contractors in accordance with the instructions of the Engineer provided that the requirement of such facilities has been described in the Special Conditions. the effect of that activity shall be treated as a Variation. the Principal may arrange for work on the Site not included in the Contract to be carried out by Persons other than the Contractor including the Principal’s employees and concurrently with the carrying out of the Contract Works. St an 915670 165. or where property access may be restricted during the course of the Contract Works. Care of the works and Site * 5.6.1 Ze ala n d The Contractor shall be responsible for the care of the Contract Works or any Separable Portion and all Plant from the time it obtains possession of the Site until the relevant time of Practical Completion. If the Principal takes occupancy under 10.7.2 of any portion of the Contract Works, the Contractor’s responsibility for care of that portion shall cease on the date and at the time of such occupancy. 5.6.2 The Contractor shall be responsible for the care of all Materials which are in its care or possession awaiting incorporation in the Contract Works. ew 5.6.3 sN The Contractor shall be responsible for loss or damage to the Contract Works occurring after Practical Completion arising out of the execution of the Contractor’s outstanding obligations under the Contract. 5.6.4 rd The Contractor shall be responsible for loss or damage to the Site arising out of the execution of the Contractor’s obligations under the Contract. da 5.6.5 (a) an Except where loss or damage has the effect of terminating the Contract by frustration, if any loss or damage occurs to the Contract Works or Materials or the Site while the Contractor is responsible under 5.6.1, 5.6.2, 5.6.3, or 5.6.4 the Contractor shall: 915670 165.84.106.5 Attend urgently to any matters with safety or environmental impacts; Repair the loss or damage to the extent needed for completion of the Contract Works and for meeting the Contractor’s obligations under Section 11. Such repair of loss or damage shall be carried out without additional payment by the Principal unless provided for under 7.1.3 or 9.5, or caused by an excepted risk as defined in 5.6.6. To the extent the necessity to repair such loss or damage arises from an excepted risk, the repair shall be treated as a Variation. 6 46 07 87 22 42 14 py rig ht (c) St (b) Notify the Engineer of the loss or damage and its cause and afford the Engineer a reasonable time to inspect the loss or damage; and 5.6.6 The excepted risks are: (a) Riot (in so far as it is uninsurable), civil commotion or disorder (unless solely restricted to employees of the Contractor or its Subcontractors and arising from the Contractor’s conduct of the Contract Works), war, terrorism, invasion, act of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection of military, or usurped power; COPYRIGHT © Standards New Zealand 25 General conditions 5.6 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 Pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds; Ze ala n (c) d * (b) Ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel, radioactive toxic explosive, or other hazardous properties of any nuclear explosive, nuclear assembly, or nuclear component thereof; (d) The use, occupation, or taking over of any portion of the Contract Works including but not limited to any portion in respect of which a Practical Completion Certificate has been issued; Any fault, defect, error, or omission in the design of the Contract Works for which the Contractor is not responsible under the Contract; (f) Subject to 8.1.6, any such operation of the forces of nature as an experienced contractor could not reasonably foresee or make provision for; (g) Any further risks specifically excepted in the Special Conditions; and (h) Any act or omission of the Principal or of the Engineer or their assistants or of any other Person for whose acts or omissions the Principal is as between itself and the Contractor responsible. sN ew (e) rd 5.7 Protection of Persons and property da 5.7.1 5.7.2 St an So far as the Site and the Contract Works are under the Contractor’s control, the Contractor shall take all reasonable steps to keep them in an orderly state and in such a condition as to avoid danger to Persons and property. 915670 165.84.106.5 The Contractor shall take all practicable steps to: Provide and maintain a safe working environment; rig ht (a) (b) Identify any significant hazards; (c) Ensure that any employee or Subcontractor involved in carrying out the Contract Works is not unnecessarily exposed to hazards which are under the Contractor’s control; and 6 46 07 87 22 42 14 py (d) Have proper procedures for dealing with emergencies that may arise. 5.7.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 The Contractor shall: (a) (b) Investigate accidents and identify their cause; and (c) 26 Maintain a register of accidents and serious harm; Ensure that all Persons under the Contractor’s control are appropriately supervised. COPYRIGHT © Standards New Zealand Ze ala n d * The Contractor shall give to the Principal through the Engineer a copy of any report which the Contractor is required to make to a public authority on any accident which is associated with the carrying out of the Contract Works and results in serious harm to any Person. 5.7.5 The Principal shall notify the Contractor through the Engineer of any safety hazards associated with the Contract Works or the Site, or special safety measures required, of which the Principal or the Engineer are aware, and with which an experienced contractor may not reasonably be expected to be familiar. 5.7.6 sN ew The Contractor shall provide all watching and provide, erect, maintain and when no longer required remove all barricades, fencing, temporary roadways and footpaths, signs, and lighting necessary for the effective protection of property, for traffic, and for the safety of others. 5.7.7 5.8 915670 165.84.106.5 da rd The Contractor shall take all reasonable steps to avoid nuisance and prevent damage to property. Setting out an 5.8.1 St The Contractor shall be responsible for the setting out of the Contract Works in accordance with the Contract and the information and instructions issued by the Engineer. 5.8.2 6 46 07 87 22 42 14 py rig ht The Engineer shall supply to the Contractor, on or before giving possession of the Site, the information necessary to enable the Contractor to set out the Contract Works. Such information shall include the levels and positions of sufficient survey marks on or adjacent to the Site. The Contractor shall refer to the Engineer for instruction any cases which come to the notice of the Contractor where dimensions or levels are inconsistent or where any portion of the Contract Works appears to encroach beyond the Site boundaries. 5.8.3 The Contractor shall preserve and maintain in their true position all survey marks other than marks which are required to be covered or removed by the Contract Works. The Contractor shall arrange replacement at the Contractor’s own Cost of any survey mark that is disturbed or obliterated. 5.8.4 If the Engineer or his or her representative wishes to check the setting out of the work, the Contractor shall provide unimpeded access. The checking by the Engineer of any line, level, or position set out by the Contractor shall not relieve the Contractor of responsibility for its correctness. COPYRIGHT © Standards New Zealand 27 General conditions 5.7.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 labour.5. NZS 3910:2013 28 COPYRIGHT © Standards New Zealand . 5. levels or dimensions of any part of the Contract Works set out by the Contractor.9.9 Ze ala n d * If at any time prior to the issue of a Practical Completion Certificate any error shall appear in the position. the ownership of the Plant or Materials shall on payment being made vest in the Principal. in which case it shall be treated as a Variation. and Plant 5.5 da rd All Materials and workmanship shall conform with the provisions of the Contract. 5. except where otherwise specified in the Contract.8. Materials.5 5.3 6 46 07 87 22 42 14 py rig ht St an Where payment is made by the Principal in the form of advances or of sums for Plant or for Materials not yet incorporated in the Contract Works.1 sN ew The Contractor shall. and to the extent. which shall not be unreasonably withheld. that any error arises out of incorrect information supplied by the Principal or by the Engineer. All work shall be carried out in a tradesman-like manner. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. the Contractor unless otherwise directed by the Engineer shall rectify the error. the Principal shall permit the Contractor the use of the Plant and Materials for the purpose of the Contract. The ownership of any items of Plant or Materials no longer required for the Contract Works shall re-vest in the Contractor on repayment of any advances made by the Principal. and which was not known by the Contractor to be incorrect.2 915670 165. supply at its own Cost everything necessary for the completion of the Contract Works and the performance of its obligations under the Contract including minor items not expressly mentioned in the Contract and of a type not normally detailed but necessary for completion and performance of the Contract Works. Unless otherwise specified in the Contract.9. The Cost of rectification shall be borne by the Contractor except. all Materials used other than in Temporary Works shall be new. Unless otherwise agreed by the Principal and the Contractor. No Plant or Materials vested in the Principal shall be removed from the Site without the prior consent of the Principal.84.106.9. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 5.5 The dates by which the Contractor reasonably requires access to specific areas of the Site. St (c) an (b) A critical path network analysis showing activity duration estimates and dependencies between activities.10.10.10 Programme Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. commonly available software. the Contractor shall prepare a programme for the Contract Works and submit it to the Engineer.1 Ze ala n d Within 10 Working Days of the Date of Acceptance of Tender. rig ht (d) The dates by which the Contractor reasonably requires any Materials. COPYRIGHT © Standards New Zealand 29 General conditions 5. 5.10. sN 5. 6 46 07 87 22 42 14 5.1.10. sufficient to demonstrate how the Contractor proposes to meet the Due Dates for Completion of the Contract Works and any Separable Portions.10.5 py The Comprehensive Programme shall be submitted in both hard copy and soft copy using software specified in the Special Conditions or.3 ew No payment otherwise due under the Contract shall become payable until the Contractor has submitted to the Engineer the programme required by 5. the period under 5. NZS 3910:2013 .10. the Engineer. da (a) rd Where the Special Conditions require the programme to be a Comprehensive Programme. where no software is specified. and (e) Any other requirements set out in the Special Conditions.6 Where the programme is a Comprehensive Programme.1 shall be 20 Working Days and the programme shall contain the following information: 915670 165.10.* 5.4 The proposed sequence of works and the dates for commencement and completion of the various activities in the programme. the Contractor shall provide updates of the programme at the intervals stated in the Special Conditions or as otherwise reasonably required by the Engineer. or any Separate Contractors.84. 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.10.106.2 The Contractor shall use the programme to track and report actual progress against planned dates and to forecast the likely dates of Practical Completion of the Contract Works and any Separable Portions. services. or work to be provided by the Principal. The programme shall demonstrate how the Contractor proposes to meet the Due Date for Completion. The Engineer may further require the Contractor to indicate the means by which the programmed progress will be achieved.11. NZS 3910:2013 30 Except as otherwise provided in the Special Conditions. Specifications.10 915670 165. COPYRIGHT © Standards New Zealand . the Principal shall at the Principal’s expense obtain all licences which may be required for the construction of the Contract Works and for the use of the Contract Works when constructed. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. updated to reflect the actual progress of the Contract Works. building consents. or as otherwise reasonably requested by the Contractor.7 Ze ala n d * The preparation and issue of further Drawings. rig ht 5. and any other such documents’.11. approvals. The Contractor shall at the Contractor’s expense obtain any such licences stated in the Special Conditions under 5.10 shall not relieve the Contractor from any of its duties. obligations.5. and other public authorities that may be applicable to the Contract Works. other than emergency work.5 an 5. project information memoranda. compliance certificates. 5. 5.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.10.3.10.11 Compliance with laws da rd Work requiring inspection by the Engineer. consents. 6 46 07 87 22 42 14 py 5. 5. and work to be provided by the Principal shall be phased to comply with the Contractor’s current programme. and instructions by the Engineer and the provision of Materials. or liabilities under the Contract. shall be carried out on Working Days and within normal working hours unless the Contractor has given reasonable prior notice to the Engineer.9 sN Compliance with any programme required by 5.11. regulations. Producer Statements.11.106. 5.11 ‘licences’ means ‘licences.84. local.1 St In respect of the Contract Works the Principal and the Contractor shall comply with the provisions of all statutes. and subject to 5.2 For the purposes of 5.10.11. services.8 ew From time to time the Engineer may require the Contractor to amend its programme to take account of the actual progress of the Contract Works so as to achieve completion by the Due Date for Completion or as soon as practicable thereafter.4.10. and bylaws of government. 11.11.4.106. The Contractor shall arrange for the Principal to be supplied with copies of any necessary documents and other information in order to comply with 5.7 In respect of: (a) 6 46 07 87 22 42 14 Licences for which the Principal is responsible under 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. or da (a) rd sN If licences obtained by the Contractor or the Principal are issued subject to conditions affecting the design or carrying out of the Contract Works. The Principal shall at the Principal’s expense obtain any such licences stated in the Special Conditions under 5.11.3 and 5. the compliance shall be treated as a Variation.11. the Contractor shall at the Contractor’s expense give all notices and obtain all licences for Temporary Works and for the Contractor’s methods of carrying out the Contract Works (except in each case to the extent that they are specified or designed by or on behalf of the Principal) and temporary amenities and temporary services required for the construction of the Contract Works. 5. The Engineer and the Contractor shall consult. NZS 3910:2013 .11.11. with a copy to the other of them.5 Issued with no conditions affecting the design or carrying out of the Contract Works. and the Engineer shall either: 915670 165. 5.5 ew The Principal shall arrange for the Contractor to be supplied with copies of any necessary documents and other information in order to comply with 5.11.6 causes delay in the completion of the Contract Works or additional Cost to the Contractor which in either case the Contractor could not reasonably have foreseen when tendering. COPYRIGHT © Standards New Zealand 31 General conditions 5. those conditions shall be notified to the Engineer by the Contractor or the Principal as the case may be. if compliance with the Engineer’s instruction under 5.84.11.4.11.11.Ze ala n d * Except as otherwise provided in the Special Conditions.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.6 Instruct the Contractor to carry out the Contract Works in accordance with such conditions. rig ht (ii) Issued with conditions affecting the design or carrying out of the Contract Works that are acceptable to the Principal. or St (i) an (b) Instruct a change to the design of the Contract Works or the Contractor’s methods of carrying out the Contract Works and the obtaining of different or modified licences: 5. or py (b) Conditions affecting the design or Specifications provided in the Contract or in a Variation. costs. or other protected right in respect of any design. trademarks. 6 46 07 87 22 42 14 py 5.12. 5.106. copyright.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. NZS 3910:2013 32 The Contractor shall indemnify the Principal against any action. or other Cost arising from any infringement of patents.11. registered designs.3 and 5.11.8 * From time to time at the request of the Engineer and in any case before making application for any Practical Completion Certificate. or bylaw. costs.12.12 Intellectual property 5. claim. an 915670 165.11.11.10 da rd If after the date of closing of tenders the making of any statute.4. registered designs. The indemnity shall not apply where the Principal or the Engineer is aware of the infringement and does not notify the Contractor. COPYRIGHT © Standards New Zealand . trademarks. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. The indemnity shall not apply where the Contractor is aware of the infringement and does not notify the Engineer. or article supplied or specified by the Principal or by the Engineer.4.11.3. such increase or decrease not being otherwise provided for in the Contract. claim. 5.11.9 (a) ew Before making application for any Final Completion Certificate. the Contractor shall deliver to the Engineer: All Producer Statements required to be provided by the Contractor under 11.1 rig ht The Principal shall indemnify the Contractor against any action. regulation.4. method.3 and 5. and All documents necessary to prove the issue of licences for which the Contractor is responsible under 5.3 and 5.11. copyright. the Contractor shall deliver to the Engineer: All Producer Statements required to be provided by the Contractor under 10.5. or other protected right in respect of any design.11. or other Cost arising from any infringement of patents. d (a) (c) Ze ala n (b) Any necessary documents or other information for the Principal to obtain any licences (including compliance certificates) for which the Principal is responsible under 5.4. method. or toll increases or decreases the Cost to the Contractor of performing the Contract.11.84. and sN (b) Any compliance certificates for which the Contractor is responsible under 5.5. or the imposition by Government or by a local authority of any royalty.5 St 5. fee. the effect shall be treated as a Variation.2. or article not supplied to the Contractor by the Principal or the Engineer. the term ‘utilities’ shall include any cadastral survey mark. 5. or alterations required.* 5.13. All fossils.2 sN ew The Contractor shall be responsible for physically locating the position of all such utilities and shall arrange with the controlling authorities for any necessary exploratory work. and which at any time has been set in or on the ground for the purposes of survey. as defined in the Cadastral Survey Act. NZS 3910:2013 .13. and other remains of geological or archaeological interest discovered on the Site shall as between the Principal and the Contractor remain the property of the Principal unless provided otherwise in the Contract. If this causes delay in the completion of the Contract Works or additional Cost to the Contractor which is not otherwise provided for in the Contract then the protection and directions shall be treated as a Variation.13. and other utilities on or about the Site.3 da rd The Contractor shall be responsible for protecting all utilities whether indicated or not and for arranging for their reinstatement or the repair of any damage resulting from its operations. protection. The Contractor shall report to the Engineer the presence of any objects of this kind of which it has knowledge. cables.13. 6 46 07 87 22 42 py 14 5. 5. reinstatement. location. For the purposes of 5.1 St 5.14. articles of value or antiquity.14 Treasure an Where a utility is not indicated or is not substantially in the position indicated in the Contract any extra work in physically locating its position or altering or protecting or offsetting or reinstating it shall be treated as a Variation. isolation. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 rig ht 5. The Contractor shall record any alterations which it makes to such utilities. and the position of such utilities shall be indicated in the Contract as accurately as the information available permits. 5. The Contractor shall keep such objects safe and dispose of them as directed by the Engineer.106.2 The Contractor shall protect such objects undisturbed pending the Engineer’s directions.4 915670 165.84.13. COPYRIGHT © Standards New Zealand 33 General conditions 5. offsetting.1 Ze ala n d The Principal shall arrange for the searching of records to determine the existence and position of pipes.14. coins.13 Underground and above-ground utilities Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and liabilities under the Contract. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Where the Engineer does not accept the plan. 5. the notice shall include the Engineer’s reasons.17.84. the Contractor shall remove all surplus Plant.106. services. NZS 3910:2013 34 COPYRIGHT © Standards New Zealand .17.5.2 rd The Site-specific safety plan shall address the means by which the Contractor intends to meet its obligations under 5.16 Late supply by Principal Where any Materials. the Contractor shall prepare and submit to the Engineer a Site-specific safety plan for the execution of the Contract Works. St an 915670 165. the Engineer shall notify the Contractor in writing whether or not he or she accepts the plan.15 Clearance of Site Ze ala n d * Upon completion.7 and shall comply with any other requirements for safety set out in the Contract. Materials.5 6 46 07 87 22 42 14 py Compliance with the Site-specific safety plan shall not relieve the Contractor from any of its duties. obligations. 5. or work are required to be provided by the Principal. da 5. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. services. the late supply of such Materials. or revised Site-specific safety plan.3 Within 5 Working Days of receipt of the Contractor’s Site-specific safety plan. temporary buildings. and the Contractor shall submit a revised Site-specific safety plan. or work shall be treated as a Variation. 5. 5.4 rig ht The Contractor shall not commence any part of the Contract Works on Site unless the Engineer has accepted the Site-specific safety plan or revised Site-specific safety plan.17. Such acceptance shall not be unreasonably withheld.5 5.17. and Temporary Works and leave the whole Site and the Contract Works in a clean and tidy condition for use and occupation by the Principal.17.1 sN Where required by the Special Conditions.17 Safety plan ew 5. or revised quality plan.4 The Contractor shall not commence any part of the Contract Works unless the Engineer has accepted the quality plan.* 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. the notice shall include the Engineer’s reasons.18. Where the Engineer does not accept the plan.18. da 915670 165. and (h) Any other requirements for quality set out in the Contract. (b) Monitoring and maintaining Subcontractors’ performance. experienced.18.84.1 Ze ala n d Where required by the Special Conditions.18. (f) Inspection and testing. the Contractor shall prepare and submit to the Engineer a quality plan for the execution of the Contract Works.5 (e) 5. relating to that part of the Contract Works. 5.3 St an Within 5 Working Days of receipt of the Contractor’s quality plan. rd sN Procedures to ensure that all Persons engaged in undertaking the Contract Works are appropriately qualified. 6 46 07 87 22 42 14 5. NZS 3910:2013 .2 The quality plan shall describe the procedures for meeting the quality requirements of the Contract for: (a) Materials and workmanship. ew (c) (d) The documentation for signing-off the Contract Works as complete. obligations. and liabilities under the Contract.106.5 py Compliance with the quality plan shall not relieve the Contractor from any of its duties. and trained or working directly under the supervision of such Persons. COPYRIGHT © Standards New Zealand 35 General conditions 5. Record keeping. the Engineer shall notify the Contractor in writing whether he or she accepts the plan. (g) Auditing the quality plan.18 Quality plan Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and the Contractor shall submit a revised quality plan. Such acceptance shall not be unreasonably withheld. or revised quality plan. rig ht 5.18. instructions. the notice shall include the Engineer’s reasons. Such acceptance shall not be unreasonably withheld. the Contractor shall prepare: As-built drawings. Where the Engineer does not accept the plan. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 The traffic management plan shall meet the requirements for traffic management set out in the Contract. and consents given by the Engineer to the Contractor from which the as-built drawings were derived.84.3 sN ew Within 5 Working Days of receipt of the Contractor’s traffic management plan.19. 5.19. the Engineer shall notify the Contractor in writing whether or not he or she accepts the plan. 5. NZS 3910:2013 36 As-built drawings and operation and maintenance manuals shall be prepared to a standard and in a form. either: (a) As set out in the Contract.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5 St 5. 5. adjust.106.5 Compliance with the traffic management plan shall not relieve the Contractor from any of its duties. obligations.19. and the Contractor shall submit a revised traffic management plan.4 rd The Contractor shall not commence any part of the Contract Works on Site unless the Engineer has accepted the traffic management plan. da 5.1 Ze ala n d Where required by the Special Conditions the Contractor shall prepare and submit to the Engineer a traffic management plan for the execution of the Contract Works. and liabilities under the Contract. The as-built drawings shall make clear cross-reference to the Drawings and Specifications and all subsequent documentation. and rig ht (a) 6 46 07 87 22 42 14 py (b) Operation and maintenance manuals. and reassemble the Contract Works (except for the Temporary Works).20. COPYRIGHT © Standards New Zealand . relating to that part of the Contract Works.1 Where required by the Special Conditions. or revised traffic management plan. or (b) In sufficient detail to enable the Principal to operate. 5. an 915670 165.20 As-built drawings and operation and maintenance manuals 5.19 Traffic management plan * 5. maintain. or revised traffic management plan.19.19.5.20. 21. The Engineer’s consent shall not be unreasonably withheld. and reassemble the Contract Works (except for the Temporary Works). This documentation may be prepared in draft form but shall be sufficient for the Principal to operate. and reassemble the Contract Works (except for the Temporary Works). maintain.1.84.3 as if notification had been given and that notification might reasonably have resulted in the impact of the matter being avoided or reduced.3 If the Contractor does not notify a matter which it reasonably ought to have notified under 5.1 Materially alter the Contract Price. 5. and rd (c) ew (b) Prior to the end of the Defects Notification Period the Contractor shall submit to the Engineer for his or her consent the as-built drawings and operation and maintenance manuals prepared in final form sufficient for the Principal to operate. any Variation arising out of the matter shall be valued under 9. 6 46 07 87 22 42 14 5.2 py Either the Engineer or the Contractor may require the other to meet for the purpose of exploring proposals for avoiding or reducing the impact of the notified matter. 5.20. The Contractor shall give advice and assistance to the Principal and Engineer until the as-built drawings and operation and maintenance manuals have received the Engineer’s consent. NZS 3910:2013 .106.21. or (c) Result in a breach of a statutory duty in connection with the Contract Works. COPYRIGHT © Standards New Zealand 37 General conditions 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 an 5.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.21. the notice shall include the Engineer’s reasons for not giving consent.21. rig ht (a) St The Contractor and the Engineer shall each notify the other in writing as soon as either of them becomes aware of any matter which is likely to: (b) Materially delay completion of the Contract Works. adjust. 915670 165. Ze ala n (a) d * As-built drawings and operation and maintenance manuals shall be submitted to the Engineer as follows: sN The Engineer shall notify the Contractor whether or not he or she consents to such as-built drawings and operation and maintenance manuals. adjust. the Contractor shall supply the Engineer with three sets of the documentation. maintain.Prior to Practical Completion the Contractor shall submit to the Engineer the draft as-built drawings and operation and maintenance manuals. Where the Engineer does not consent.21 Advance notification da (d) Once the Contractor has prepared the final as-built drawings and operation and maintenance manuals which receive the consent of the Engineer. and to issue certificates.2 an da Every appointment under 6.6 ENGINEER’S POWERS AND RESPONSIBILITIES * Appointment of Engineer d 6.1 6.1.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. giving directions to the Contractor on behalf of the Principal.2. to value the work. and that the Engineer fulfils all aspects of the role and functions reasonably and in good faith. COPYRIGHT © Standards New Zealand . sN (a) ew If the Engineer is no longer authorised by the Principal or no longer available to be the Engineer. 915670 165.1 shall be of one natural person only.3 Appoint a suitably qualified person to act as Engineer in the interim.1.1 Ze ala n The Principal shall ensure that at all times there is an Engineer.84. 6.1 St 6.5 The dual role of the Engineer in the administration of the Contract is: As expert adviser to and representative of the Principal. NZS 3910:2013 38 The Engineer shall exercise the powers entrusted to him or her by the Contract without undue delay. and rig ht (a) 6 46 07 87 22 42 (b) Independently of either contracting party. 6. the Principal shall forthwith: (b) Notify the Contractor of the person it then proposes to appoint as Engineer. and acting as agent of the Principal in receiving payment claims and providing Payment Schedules on behalf of the Principal. notify the Contractor of the appointment of the new Engineer.1.2 The name and professional qualification of the Engineer shall be set out in the Special Conditions.1.106.4 Role of Engineer 6. to fairly and impartially make the decisions entrusted to him or her under the Contract. not being a body corporate or firm. rd (c) 6. and After considering any representations made on behalf of the Contractor.2. py 14 6. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 6. The Engineer shall thereupon appoint another competent natural person in place of the person about whom the objection has been made.84. the issuing of a Practical Completion Certificate or a Final Completion Certificate.3. inspection. 6. unless expressly authorised by the Engineer by written notice to the Contractor. and any changing of the Drawings or Specifications.3. py (b) The valuing of Variations. 6. from time to time by notice to the Contractor in writing.2.2.106. acceptance. directions or instructions necessary for the administration of the Contract shall be given only through the Engineer. Directions or instructions shall where appropriate or when requested by the Contractor be given in writing at the time of the instruction or as soon as practicable thereafter. not being a body corporate or firm.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. The notice shall state the grounds upon which the objection is based. that failure shall be treated as a Variation.5 da rd The Engineer may.2. NZS 3910:2013 . the provision of Payment Schedules.4 If the Contractor suffers delay in the completion of the Contract Works or incurs additional Cost by reason of the failure or inability of the Engineer to carry out properly his or her duties as described in the Contract.3. rig ht 6. the granting of extensions of time. COPYRIGHT © Standards New Zealand 39 General conditions 6.1.3 sN ew No review.3 The Engineer’s Representative may exercise any of the powers vested in the Engineer under the Contract except: (a) 6 46 07 87 22 42 14 The reviewing of matters in dispute. appoint an Engineer’s Representative who shall be one natural person only.2 St an The Contractor may at any time by notice in writing to the Engineer object on reasonable grounds to the continuance of any person as Engineer’s Representative.5 6. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.Ze ala n d * Except where the Contract otherwise provides.1 915670 165. and (c) Any other powers excluded by the Engineer by written notice to the Contractor. or approval by the Engineer shall relieve the Contractor of any obligation or liability under the Contract. except in the case of a Variation instructed under 9. Engineer’s Representative 6. 6.5 6. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1 915670 165. reverse. The Contractor shall afford every reasonable facility for. The Engineer shall give written notification to the Contractor of Persons appointed to assist the Engineer’s Representative.4. and assistance in. shall be borne by the Contractor.3. measuring.4. or testing. and testing within a reasonable time and the Contractor thereby suffers delay in the completion of the Contract Works or incurs additional Cost.4 40 The Contractor shall notify the Engineer when the work is ready or about to be ready for inspection recording. including any Costs incurred by the Engineer or the Principal. obtaining access for the purpose of inspection. or testing.4 sN The Engineer may appoint any Persons to assist the Engineer’s Representative in carrying out his or her duties. ew 6. recording. measurement. Inspection. 6.84. In such case the Engineer shall advise the Contractor accordingly. If the Engineer fails to carry out inspection. NZS 3910:2013 6.2 rig ht St The providing of samples or making and reporting tests ordered by the Engineer and not otherwise provided for in the Contract shall be treated as a Variation except that where the work or Materials are found to be not in accordance with the requirements of the Contract. and Materials required for sampling.5 an da The Engineer may at any time prior to the expiry of the Defects Notification Period require that any Materials or work forming part of the Contract Works shall be inspected or tested at the place of manufacture or at the Site. and Ze ala n (a) d * Any instruction or decision given by the Engineer’s Representative to the Contractor within the scope of his or her authority shall bind the Contractor and the Principal as though it had been given by the Engineer. The Contractor shall provide the assistance. or vary the instruction or decision. that failure shall be treated as a Variation. measuring. the Cost. The Engineer shall within a reasonable time examine and measure the work unless he or she considers it unnecessary to do so. recording. recording. COPYRIGHT © Standards New Zealand . measuring. labour.3. recording. provided that: (b) If the Contractor is dissatisfied with any instruction or decision of the Engineer’s Representative it may refer the matter to the Engineer who after investigation shall confirm. or testing.4 Failure of the Engineer’s Representative to inspect or disapprove any work or Materials shall not prejudice the power of the Engineer thereafter to inspect or disapprove such work or Materials and order the removal or rectification thereof if not in accordance with the Contract. or testing any Materials or work.4. inspecting.3 6 46 07 87 22 42 14 py The Engineer and any Person authorised in writing by him or her shall have access at all reasonable times to the Site and to all places where work is being carried out for the purposes of inspection. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and testing rd 6. measuring. 6.4.106. 5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. If such work has been covered up without consent. recording. NZS 3910:2013 . the Engineer may. Removal and making good St 6.5.6 sN ew If the Contractor acts unreasonably in notifying that the work is or will be ready for inspection.5. or testing any part of the Contract Works. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. The fact that work does not pass an inspection or test shall not of itself mean that it was not ready for inspection or testing nor shall the fact that the work is not ready at the time notified of itself mean that the Contractor has acted unreasonably. recording.7 da rd The Engineer may at any time prior to the expiry of the Defects Notification Period instruct the Contractor to open up or otherwise expose for inspection. if the work is found to comply with the requirements of the Contract.2 If the Contractor fails to carry out any work instructed under 6. then the Principal may deduct the reasonable amount of such Cost from the Contract Price. or testing shall not be covered up or put out of view without the consent of the Engineer. measuring.4. and the Engineer attends by appointment and loses time resulting in additional Cost to the Principal. and reinstating of the work shall be treated as a Variation but in every other case the Cost shall be borne by the Contractor. recording. 6 46 07 87 22 42 14 py 6. The Contractor shall comply with the direction and shall reconstruct or reinstate the work opened up or exposed so that it complies with the requirements of the Contract.2 shall be recoverable by the Principal from the Contractor. COPYRIGHT © Standards New Zealand 41 General conditions 6. Except as set out in 6.1 rig ht The Engineer may at any time prior to the expiry of the Defects Notification Period by notice in writing instruct the Contractor to remove and re-execute or to make good any work which in respect of Materials or workmanship is not in accordance with the Contract. The Contractor shall comply with the instruction at its own Cost.Ze ala n d * Work specified by the Contract as requiring inspection. No deduction shall be made unless the Engineer has notified the Contractor of the circumstances and amount within 10 Working Days of the additional Cost being incurred. measuring.4. then the opening up or pulling down.1 within any time stated in the notice or other reasonable time. measuring.3 The reasonable Cost of the work undertaken by others under 6.106. 6. the Engineer shall notify the Contractor of the work undertaken and its Cost.5.5.84. 6. direct others to undertake the work. As soon as practicable after completion of the work.5. the Contractor shall open up the same when required at its own Cost.5 6.4. 6.5 an 915670 165. reconstructing. or testing when clearly it is not. after giving 5 Working Days’ further written notice to the Contractor stating that it is given under this clause.5.4. 84. 6.1 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2 During the suspension the Contractor shall properly secure and protect the Contract Works against damage and leave the Site in a safe and tidy condition.5.5 da rd A certificate or Payment Schedule shall not constitute approval of any work or release the Principal or the Contractor from any obligation under the Contract except as provided in the Contract. 6. 6.2 915670 165.4 d * The taking of any action by the Engineer under 6. and shall provide Payment Schedules as required by the Contract.7. 6. the Engineer shall instruct the Contractor in writing to suspend the progress of the whole or any part of the Contract Works for such time as the Engineer may think fit. Each certificate or Payment Schedule shall be sent to the Contractor and a signed copy shall be sent at the same time to the Principal.5.3 St an The Engineer may by any Payment Schedule correct a sum certified by the Engineer in any previous Payment Schedule which has been provided by him or her.6. 42 COPYRIGHT © Standards New Zealand . General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.106. the Engineer may at his or her discretion allow such Materials to be used or such work done to remain and decide the prices or rates of payment to the Contractor for such Materials or work carried out. NZS 3910:2013 If the suspension of the whole or a part of the Contract Works becomes necessary. 6.6.6. or by any previous Engineer.1 sN The Engineer shall issue the Practical Completion Certificate and the Final Completion Certificate. Ze ala n 6. 6.5.7.5 If the Contractor supplies any Materials or carries out any work not in accordance with the Contract.6 Certification ew 6.2 shall not relieve the Contractor of any of its obligations under the Contract.6.7 rig ht If the Engineer fails to issue a Practical Completion Certificate or a Final Completion Certificate within the time provided under the Contract and the Contractor thereby suffers delay in the completion of the Contract Works or incurs additional Cost. and the Contractor shall comply with the instruction.4 6 46 07 87 22 42 14 Suspension of work py 6. that failure shall be treated as a Variation. provided he or she notifies the Contractor in writing of his or her reasons for so doing.6. and 6.8.8.3 If the action taken by the Engineer under 6.8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.7. As soon as practicable after the taking of the action. emergency.1. Ze ala n 6.1 In the event of: Any accident.4 If the suspension remains in effect for more than 3 Months.3.8 Engineer may instruct urgent work rd 6.2 involves work which the Contractor was liable to do at its own expense under the Contract.8. 6.4 The taking of any action by the Engineer under 6. NZS 3910:2013 . the Engineer on behalf of the Principal may take such action as the Engineer reasonably considers necessary.d * Unless the suspension is due to default on the part of the Contractor. or because significant inconvenience to third parties might arise. the Engineer shall notify the Contractor of the work undertaken and its Cost.7. 6. the suspension shall be treated as a Variation.2.7. the Contractor may request the Engineer in writing to permit the suspended work to be continued.3 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. an (b) Any outstanding work or other work under the Contract that the Engineer considers to be urgent due to environmental or public safety issues. or da (a) 915670 165.5 6. 6 46 07 87 22 42 py 14 6. If the Engineer does not grant permission to continue within 1 Month of receipt of the request.84. 6.8.7. or where the suspension affects the whole of the Contract Works as an abandonment of the Contract by the Principal.4 shall apply unless expressly excluded.7.2 If the Contractor cannot be contacted or is unwilling or unable to act within a reasonable time to secure the works or to attend to any work that the Engineer has required under 6. St the Engineer may notify the Contractor in writing of any urgent work which he or she requires and the reasons therefor. COPYRIGHT © Standards New Zealand 43 General conditions 6. or other similar event occurring to or in connection with the Contract Works. The Contractor shall be entitled to take control of such operations as soon as it is willing and able to do so. and the provisions of 6.8. rig ht 6. the Principal and the Contractor may by agreement in writing suspend the Contract Works for any period.7. then the Contractor shall be entitled to treat the suspension as a Variation deleting the uncompleted portion of the suspended work from the Contract.5 sN ew Notwithstanding the above. the reasonable Cost of that work shall be recoverable by the Principal from the Contractor.8.106. or failure.2 shall not relieve the Contractor of any of its obligations under the Contract. liability.7 INDEMNITY * Indemnity d 7.2 and any Cost it may incur in respect of any such loss or liability. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. or his or her assistants. or Cost in respect of: 915670 165. St (d) Any risks specifically excepted in 5. or remedying of defects in the Contract Works.1. or Cost.84. (b) Any liability incurred by the Principal in respect of injuries to Persons or damage to property which may arise out of. (b). and Any Costs the Principal may incur in respect of that loss or liability. ew (c) 7.1 (a) Ze ala n Except as otherwise provided in the Contract the Contractor shall indemnify the Principal against: Any loss suffered by the Principal which may arise out of. or an (c) da (b) Injuries to Persons or damage to property or interference with the rights of other Persons which is the unavoidable result of carrying out or remedying of defects in the Contract Works in accordance with the Contract.106. liability.1. and (c) of 7. or in consequence of the construction of. or of any other Persons for whose acts or omissions the Principal is as between it and the Contractor responsible. 6 46 07 87 22 42 14 7.1. rd (a) sN The Contractor’s liability to indemnify the Principal shall not extend to any loss.6. py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. the Contract Works.5 Any act or omission of the Principal or of the Engineer.3 rig ht The Principal shall indemnify the Contractor against any loss suffered by the Contractor or liability incurred by it in respect of any of the matters referred to in paragraphs (a).2 The permanent use of or occupation of land by the Contract Works and the right of the Principal to carry out the Contract Works on the Site.1 7. or in consequence of the construction of. 7. NZS 3910:2013 44 COPYRIGHT © Standards New Zealand .1.1. or remedying of defects in.4 The Contractor’s liability to indemnify the Principal and the Principal’s liability to indemnify the Contractor shall be reduced proportionately to the extent that the act or omission of the indemnified party or its servants or agents may have contributed to the loss.6. 3. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.* General d 8. rd 8.2.1(a) the forces of nature stated in the Special Conditions shall be included in the insurance arranged by the party required to effect the relevant insurance and such forces of nature shall be deemed not to be excepted risks under 5. 8.6(f).8.3 sN The Contractor and the Principal shall comply with all warranties and conditions of the policy and shall not engage in any practice or activity which could void the insurance cover.1 Ze ala n The insurances required for this Contract. 8.106. the Contractor shall bear the full amount of any insurance policy deductible or excess.1.4 915670 165.1 8. the party first notified by the insurer shall promptly give notice to the other insured parties.5 Where any loss. except where the loss. 6 46 07 87 22 42 14 py (c) 8.1.1. the parties responsible to effect the insurances.5 Where the insurance(s) are arranged by the Contractor. liabilities.6. and Where and to the extent that a party has failed to effect insurance in accordance with its obligations under the Contract. the Contractor may be liable for more than one deductible or excess stated.84. damage.6(f).1. 8.1 as applicable.8.7.1.9.6 Notwithstanding 5. or liability arises out of an act or omission of the Contractor in which event the Contractor shall bear the amount stated in the Special Conditions as the Nominal Deductible under 8. 8. without the prior approval of the other insured parties.1. and 8. and the amounts or values of the insurances are set out in the Special Conditions. The Nominal Deductible shall in each case be an amount which is equal to or less than the actual insurance policy deductible or excess.1. NZS 3910:2013 .2 ew Neither the Contractor nor the Principal shall make any material alteration to the terms of any insurance required by this Contract during the currency of the insurance or its renewal. damage or liability is covered by more than one insurance policy. or responsibilities set out in the Contract provided that: rig ht St (b) Where the insurance(s) are arranged by the Principal. an (a) da Any amounts not insured or not recovered from the insurers shall be borne by the parties in accordance with their obligations. COPYRIGHT © Standards New Zealand 45 General conditions 8 INSURANCE Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and 8. 8.5(a). If any insurer makes or attempts to make any such alteration. that party shall be liable for the full amount of the loss.6. the Principal shall bear the full amount of any insurance policy deductible or excess. and sN (a) rd (b) Where the insurances are required to be in the joint names of the Contractor and the Principal. and 8. The acceptance and approval shall not be unreasonably withheld.4.7 46 Whenever required by the Principal.8. 8.3. the amount of the cover shall be reinstated to the full cover required by the Contract.5 rig ht St The Contractor shall.106. and 8. and for which the Contractor is responsible. 8. each of them is severally insured.4. 8.6 py The Contractor shall. such that the insurance shall apply to them as separate insureds.3.1 Ze ala n d The insurances for which the Contractor is responsible under the Special Conditions shall be effected with insurers acceptable to the Principal and in terms approved by the Principal and shall be in effect prior to the commencement of the Contract Works.4.2. COPYRIGHT © Standards New Zealand .3.3 The insurances required under 8.2. deposit with the Engineer a replacement insurance information form as set out in Schedules 7 to 11 as appropriate to the type of insurance. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2 The insurances required under 8. 8. 915670 165.6 shall not include a discretionary cancellation clause unless they are annual policies.2. are in force.2. da 8. 8.5.2.5 shall provide that: In the event of a claim being made and accepted. and 8.5 8.6 shall provide that they shall not be voided for non-payment of premiums without 5 Working Days’ prior notification by the insurer in writing to the insured party which has arranged the insurances. no less than 15 Working Days prior to the cancellation or expiry date of any policy. showing the extension of the period of insurance.2. The information shall be in the form set out in Schedules 7 to 11 as appropriate to the type of insurance.2 Contractor arranged insurances – General * 8.5. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. the Contractor shall produce to the Principal the policy or policies and either the receipts for payment of the current premiums or certificates of currency. 6 46 07 87 22 42 14 8. prior to the commencement of the Contract Works.84. ew 8. Any withholding of acceptance or approval shall not extend to policy form or drafting style. deposit with the Engineer information from insurers or insurance brokers that all the insurances required by the General Conditions and Special Conditions.2.4 an The insurances required under 8. NZS 3910:2013 8. 8. the Principal may.1. and py (e) An allowance for increased construction Costs due to inflation. arrange or keep in force the required insurance. for the reconstruction of the Contract Works if they were to sustain a total loss at any time during the period of insurance.6. including the Cost of clerks of works and inspectors. in the names of the Principal and the Contractor.3 (a) St The sum insured shall be not less than the total of the Contract Price and the sums or percentages stated in the Special Conditions in respect of: The Cost of demolition.3 Contractor arranged construction insurance ew 8.8 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 8. 915670 165.5 an 8.Fails to arrange or keep in force any insurance to be effected by the Contractor as required by the Contract.2.3. after notifying the Contractor in writing.1 rd sN Where the Contractor is identified in the Special Conditions as being the party responsible to effect construction insurance.5 and 8.3.2. rig ht (b) Professional fees. not already provided for in the Contract Price. the Contractor shall. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84.2 da The Contractor shall ensure that the insurance policy notes the interest of any other Person whose interest the Special Conditions require to be noted in the policy. NZS 3910:2013 .2. and preparation for replacement works.6 and 7. COPYRIGHT © Standards New Zealand 47 General conditions 8. (c) The value of items incorporated or to be incorporated in the Contract Works the Cost of which is not included in the Contract Price. disposal.106. without limiting its obligations under 5. 6 46 07 87 22 42 14 (d) An allowance for an increase in the Contract Price due to Variations.3. effect construction insurance of the Contract Works (including Temporary Works) and the Materials which are in the care or possession of the Contractor within New Zealand or in transit from elsewhere in New Zealand. and may pay any premium or premiums and deduct the amount from the Contract Price. 8. or d (a) * If the Contractor: Ze ala n (b) Fails to supply the insurance information forms as required by 8. until the date and time of such occupancy.4 Any risk.3.7.2.106. and For any act or omission of the Contractor arising out of the performance of the Contract Works after Practical Completion or after the Principal’s occupation under 10. ew The insurance shall cover loss or damage to the property insured but may exclude: (b) Loss or damage for which the Contractor is not liable under 7. and Where required by the Special Conditions.6.3.7. or any loss or damage not covered by reason of a term or condition of insurance which is approved by the Principal under 8.2 until the issue of the Final Completion Certificate. 8. electrical or mechanical breakdown. workmanship.2.5 (a) An excepted risk under 5. NZS 3910:2013 48 COPYRIGHT © Standards New Zealand . rd (c) Contractor arranged Plant insurance St 8.8. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. This exclusion shall be limited to the defective items in the Contract Works or Materials but the insurance shall extend to other insured items which are consequently lost or damaged. or d (a) * The Contractor shall maintain this insurance: (c) Ze ala n (b) In the case of any portion of the Contract Works of which the Principal takes occupancy under 10. wear and tear. an (e) 915670 165. or gradual deterioration. or rig ht (a) (b) Each item of Plant on the Site having a current market value of more than the sum stated in the Special Conditions.2. sN The Cost of remedying loss or damage caused by defective Materials. 6 46 07 87 22 42 py 14 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1. the Contractor shall insure: Those items of Plant on the Site which are critical to the performance of the Contract Works and are identified in the Special Conditions.4 Up to the date and time of Practical Completion of the Contract Works or of the relevant Separable Portion.1. or design.5 da (d) Liability of the Contractor for liquidated damages.6.84. other than to the Contract Works and existing property to be insured under 8.2 915670 165. ew (a) Ze ala n d Where the Contractor is identified in the Special Conditions as being the party responsible to effect public liability insurance.6.1.8. or control of the Contractor in connection with the execution of the Contract Works.6. 8. loss.Contractor arranged public liability insurance * 8. sN (c) 8. loss.5. or injury to the Principal and to the Principal’s property. for an amount not less than that stated in the Special Conditions.1. COPYRIGHT © Standards New Zealand 49 General conditions 8. The insurance shall be for the minimum amount stated in the Special Conditions. The insurance shall also include cover for: (b) Liability arising out of vibration.2. loss.3 St The Contractor shall maintain this insurance until the issue of the Final Completion Certificate.106. or any loss or damage not covered by reason of a term or condition of insurance which is approved by the Principal under 8. without limiting its obligations under 5. or injury caused by any act or omission of the Contractor arising out of the performance of the Contract Works.84. The term ‘motor vehicle’ shall include any item of Plant which is licensed or required by law to be licensed as a motor vehicle. (c) 6 46 07 87 22 42 14 Liability of the Contractor for liquidated damages.6 and 7.5. custody.3 or 8. NZS 3910:2013 .5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5 may exclude: (a) An excepted risk under 5. to indemnify the Principal and the Contractor against legal liability to third parties for damage. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. an 8. or injury for which the Contractor is not liable under 7. weakening.5.1. (b) Damage.5.2. or removal of support.1 The Contractor’s legal liability arising out of the performance of the Contract Works for damage. the Contractor shall. effect public liability insurance in the names of the Principal and the Contractor.5 da rd The Contractor shall effect motor vehicle third party insurance against legal liability to third parties arising from the use of any motor vehicle belonging to or under the care.4 rig ht The insurances under 8. and Liability under the Forest and Rural Fires Act. and py (d) Any risk. 8. the Contractor shall. effect professional indemnity insurance for Contractor’s design in the name of the Contractor.6.1.8 and 8. 5. (c) St (b) Liability of the Contractor for liquidated damages.5 8.3.4 (a) an The insurance may exclude: Loss or damage for which the Contractor is not liable under 7. Risks and property damage for which cover has been provided under 8.1.4.6 Contractor arranged professional indemnity insurance * 8.3 da rd The insurance shall cover liability for damage or loss caused by the Contractor not meeting its obligations under 5.1. 8. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 5.1. This may be achieved by a single policy for the full period or by a renewable annual policy.1.9.1. 915670 165.6.2. the amount of professional indemnity insurance to be provided by the Contractor for the design undertaken by that Subcontractor may be sub-limited to the amounts stated in the Special Conditions for the design of that specific part of the Contract Works.106. where the Contractor is required to provide professional indemnity insurance and engages a Subcontractor for the design of a specific part of the Contract Works.1 Ze ala n d Where required by the Special Conditions. without limiting its obligations under 5.84. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2 sN ew Without limiting the Contractor’s obligations. 5. or any loss or damage not covered by reason of a term or condition of insurance which is approved by the Principal under 8.6.1.5. 8.2.4. and 7.6.6. The Contractor shall maintain the insurance up to the date of Practical Completion of the whole of the Contract Works and thereafter for a further period of 6 years. and 6 46 07 87 22 42 14 py rig ht (d) Any risk. for an amount not less than that stated in the Special Conditions for any one claim or series of claims arising out of the same occurrence and an amount in the aggregate. NZS 3910:2013 50 COPYRIGHT © Standards New Zealand . conditions.84. The information forms shall be in the form set out in Schedules 9 and 12 as appropriate. and in its name only.7 suspend the Contract Works until the default is remedied.8 and 8.3 915670 165.4 and 8. or liability but may exclude: (b) The Cost of remedying loss or damage caused by defective Materials.8 or 8.8. damage.6 Whenever required by the Contractor.5 da rd If the Principal is in default of its obligations under 8. deliver to the Contractor information forms confirming that all the insurances required by the Special Conditions are in force. with such approval not to be unreasonably withheld. or gradual deterioration. warranties.5 The Principal shall.7 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 8. COPYRIGHT © Standards New Zealand 51 General conditions 8.9 the Engineer shall by notice in writing under 6. workmanship or design.7 Where any insurance policy provided by the Principal does not cover risks or liabilities to the satisfaction of the Contractor.3 respectively. the Contractor may arrange at its expense. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. after notifying the Principal in writing.2 sN The insurance under 8. 6 46 07 87 22 42 py 14 8. prior to the commencement of the Contract Works.7.7.7. The Contractor may pay any unpaid premiums and recover the amount from the Principal. 8. additional or other insurance.7. or endorsements provided under the policy of which notice has been given in the Special Conditions. or extraordinary exclusions.6. mechanical breakdown. NZS 3910:2013 .Principal arranged insurances – General * 8. 8.1 An excepted risk under 5. The Contractor may. the Principal shall produce to the Contractor the policy or policies and either the receipts for payment of the current premiums or certificates of currency.9 may. or 8.7.8.8 and 8. in addition to the exclusions under 8. be subject to any deductible.9 shall cover loss. Ze ala n (a) d The insurance under 8.1. provided the policy is renewed or replaced so that the insurance cover remains in force for the periods required by 8.7. rig ht 8. This exclusion shall be limited to the defective item in the Contract Works or Materials but the insurance shall extend to other insured items which are consequently lost or damaged. an 8.106.7. The information forms shall be from insurers or insurance brokers named in the Contract or approved by the Contractor.4 St The insurances under 8.7.6. electrical.9 may be in the form of an annual policy.9.7. and the suspension shall thereupon cease. ew 8. arrange or keep in force the insurances required. and (c) Liability of the Contractor for liquidated damages. wear and tear. or 6 46 07 87 22 42 14 py (b) In the case of any portion of the Contract Works of which the Principal takes occupancy under 10.8.2.8. COPYRIGHT © Standards New Zealand . plus the additional covers required under 8.8. the Principal shall effect construction insurance in the names of the Principal. repairs.106. NZS 3910:2013 52 For any act or omission of the Contractor arising out of the performance of the Contract Works after Practical Completion or after the Principal’s occupation under 10.7.1 and shall include cover for the replacement values nominated in the Special Conditions in respect of: (b) Other structures in the vicinity.1 and 8. alterations. for the sums insured or percentages as stated in 8.3.84.3.2.5 da in each case as identified in the Special Conditions. the Contractor. the Principal shall effect insurance under 8. until the date and time of such occupancy.8.8.3.2 until the issue of the Final Completion Certificate.8.8. and (c) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 Ze ala n d Where the Principal is identified in the Special Conditions as being the party responsible to effect construction insurance.8. or maintenance to an existing structure. the Contractor and Subcontractors for the Contract Works (including Temporary Works) and the Materials which are in the care or possession of the Principal.7. or where the Contract Works are in the vicinity of another structure in the care of the Principal.4 rig ht The Principal shall maintain this insurance to cover loss or damage to the property insured from the commencement of the Contract Works: (a) Up to the date and time of Practical Completion of the Contract Works or of the relevant Separable Portion. rd (c) 915670 165.2 the Principal may effect a separate insurance policy or a series of insurance policies giving the same level of indemnity to the Contractor and Subcontractors as if they were insured under a construction insurance policy under 8.3 St an In complying with its obligations under 8. or any Subcontractor within New Zealand or in transit from elsewhere in New Zealand.2 The existing structure.8 Principal arranged construction insurance * 8. 8. and Any contents which are owned by the Principal and contained within the existing or other structures. 8. sN (a) ew Where the Contract Works are in the nature of additions. 8.8. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. in the names of the Principal. or injury (including loss of use of property whether damaged or not) caused by any act or omission by any of them in the course of carrying out the Contract Works. other than to the Contract Works and existing property to be insured under 8. or removal of support.9.Principal’s option to insure public liability * 8. weakening.9 shall also include cover for: (b) Liability arising out of vibration. loss. and Subcontractors. The insurance shall not cover legal liability for damage which is covered by the insurances under 8. and Liability under the Forest and Rural Fires Act. NZS 3910:2013 . rd (c) 8.1 Ze ala n d Where the Principal is identified in the Special Conditions as being the party responsible to effect public liability insurance.106. loss. 6 46 07 87 22 42 14 py rig ht St an 915670 165. the Principal shall effect public liability insurance for an amount not less than the amount stated in the Special Conditions. sN (a) ew The insurance required under 8. 8.2 The Contractor’s legal liability arising out of the performance of the Contract Works for damage.84.9 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3 or 8. to indemnify each of them against legal liability for damage.9. or injury to the Principal and to the Principal’s property.8.3 or 8.3 da The Principal shall maintain this insurance from the commencement of the Contract Works until the issue of the Final Completion Certificate.8.9.5 COPYRIGHT © Standards New Zealand 53 General conditions 8. the Contractor. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 915670 165.1 9.1 should be treated as a Variation. (d) Require additional work to be done. Any such direction shall be a Variation.2.106. (c) Change the character or quality of any Material or work. the Contractor shall within 1 Month or as soon as practicable thereafter give written notice to the Engineer to that effect.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2.5 The value of Variations shall be added to or deducted from the Contract Price. or Change the level. order any Variation after the issue of the Practical Completion Certificate in respect of the Contract Works or of any Separable Portion to which the Variation relates. without the consent of the Contractor.3 da rd The Engineer shall not.1. 54 COPYRIGHT © Standards New Zealand . NZS 3910:2013 Where an instruction is given by the Engineer or the Engineer’s Representative which is not in writing or is not expressly stated to be a Variation. 9.1.9 VARIATIONS * Variations permitted d 9.1.1.84. St 9. the Contractor shall within 1 Month of becoming aware of the matter or as soon as practicable thereafter give written notice to the Engineer to that effect.1.1 6 46 07 87 22 42 14 py The Contractor shall not vary the Contract Works without an order in writing from the Engineer.5 9.2. (b) Omit any work.2 sN The Engineer may direct or change the order in which the work is to be carried out. 9. ew (e) Ze ala n The Engineer may order any Variations to the Contract Works within the scope of the Contract that: 9. position.1.3 Where the Contractor considers any matter which is not described in 9. or dimensions of any part of the Contract Works. line.4 an The Contractor shall carry out and comply with any Variation ordered under 9. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and the Contractor considers that the instruction involves a Variation. 9.1 (a) Increase or decrease the quantity of any work.2 9. Variation orders rig ht 9. Failing agreement. having regard to the matters referred to in 9.3.2 or 9.2.3 Ze ala n d * Within 1 Month of the receipt of notice under 9. the instruction or matter shall be treated as a Variation.3. the Engineer shall measure the work and shall notify the Contractor of his or her measurement. The Contractor’s notice shall include sufficient details to allow the Engineer to assess the value of the Variation. Unless within that time the Engineer issues a notice in writing disallowing a Variation.3. St 9.3 or as soon as practicable thereafter. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84.3. the Engineer shall by notice in writing either confirm that the instruction or matter involves a Variation or disallow a Variation giving reasons for doing so. or part of the work.106.3 915670 165. the value shall be determined by the Engineer in accordance with 9.2. rd 9.5 an da Where the valuation of the Variation requires that the work be measured.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. of each Variation shall as far as possible be determined by agreement between the Contractor and the Engineer.3.3. the Base Value shall be determined by applying those prices or rates. 9.3.7. Where the value as determined differs from any value proposed by the Contractor.4 rig ht The value.9.2. the notice shall include the Engineer’s reasons for his or her valuation.2 sN The Contractor shall notify the Engineer of the proposed value of any Variation within 1 Month or as soon as practicable following receipt of any Variation ordered under 9. Valuation of Variations 9. if any. 6 46 07 87 22 42 14 py 9. but any failure to do so shall not invalidate the Variation.6 Where the Schedule of Prices contains prices or rates which are not directly applicable but which have a sufficient relationship to the Variation for it to be reasonable for new prices or rates to be derived from them. The value of each Variation when determined shall be confirmed or notified to the Contractor in writing. The Contractor and the Engineer shall each provide to the other without undue delay such evidence as may reasonably be required to establish the correctness of all relevant quantities and Costs and the effect on the programme.2.1 or any confirmation from the Engineer under 9. ew 9.1 Wherever practicable Variations shall be valued before the work involved is commenced.4. COPYRIGHT © Standards New Zealand 55 General conditions 9. and shall exchange their respective calculations and estimates of the value of the Variation. the Base Value shall be determined by applying such derived prices or rates.5 Where the Contract includes a Schedule of Prices which contains prices or rates applicable to the circumstances and nature of the work. NZS 3910:2013 .3. 11. 9. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3.14.11.15).3. Ze ala n (a) d * Where there is no Schedule of Prices. in which case 9. and 9. and py (c) To the extent the prices or rates in the Schedule of Prices include allowance for On-site Overheads.10 shall apply.3. in which case 9.3.3.15. rd (a) sN To the extent that the Base Value has been determined under 9.3. and 9. 9. or 6 46 07 87 22 42 14 (b) Where no percentage is nominated.3.3. 9. a reasonable percentage shall be used. 9.6 by reason of the Variation: (b) Having to be executed under conditions different from those applying to the original work.5 an da (b) All Off-site Overheads and Profit except those covered under 9.7 applies. 9.7 Not being similar to the original work.3.3.3.14.3.3.14. where the Special Conditions or Schedule of Prices nominate a percentage for On-site Overheads. and 9. where the Special Conditions state that the prices and rates in the Schedule of Prices are exclusive of On-site Overheads or where 9. NZS 3910:2013 56 COPYRIGHT © Standards New Zealand .11. (c) Having to be undertaken at a time which affects the Cost of the work. or where there is no applicable item in the Schedule of Prices and it would not be reasonable to derive new prices or rates under 9.3.9.3. there shall be added to the Base Value a percentage to cover all On-site Overheads (except those covered under 9. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3. ew then the Base Value shall be determined on the basis of Net Cost.8 All On-site Overheads except those covered under 9.106.6 it shall be deemed to include full allowance for: 915670 165. the percentage so nominated shall be used. unless the Special Conditions state that the prices and rates in the Schedule of Prices are exclusive of On-site Overheads. unless the Special Conditions state that the prices and rates in the Schedule of Prices are exclusive of Off-site Overheads and Profit.5 or 9. no percentage shall be added.3. This percentage shall be determined as follows: (a) Subject to 9.3.9 rig ht St For On-site Overheads.3.15.12.84.9 shall apply. or (d) Involving quantities increased or decreased from the original work or from the scheduled quantities. This percentage shall be determined as follows: Subject to 9. there shall be added to the Base Value as increased under 9. The Contractor’s compensation for time-related Cost and profit shall be the greater of the allowance under those clauses and the amount determined under 9. a reasonable percentage shall be used.3. the Contractor shall be entitled to reasonable compensation for time-related Onsite Overheads and Off-site Overheads and Profit.12.84.3.15). 9.10.12 such rate shall be used and shall be deemed to provide for time-related On-site Overheads and Off-site Overheads and Profit.3. then reasonable percentages or a reasonable Working Day rate shall be used.3. rig ht St (c) an (b) Where the Special Conditions or Schedule of Prices do not nominate such a rate. the Contractor shall be entitled to compensation for the time-related Cost incurred in relation to that extension together with an allowance for profit.5 or 9.12 py Where a percentage has been nominated under 9.3. 9.3. COPYRIGHT © Standards New Zealand 57 General conditions 9.6 or included in the evaluation of overheads and profit under 9.106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. or where 9. NZS 3910:2013 . no percentage shall be added. where the Contractor is entitled to an extension of time by reason of the net effect of any Variation. or da (a) rd sN For time-related Cost. and 9.11(a).3.3. and 6 46 07 87 22 42 14 9.3.3. the percentage so nominated shall be used. To the extent that such Cost has not been compensated in arriving at the Base Value of the Variation it shall be determined as follows: 915670 165.3.13 Where the Base Value is a negative figure.7 applies.3.11 Where the Special Conditions or Schedule of Prices nominate a Working Day rate then subject to 9.9 and 9.11(a) and (b).3. except to the extent that the Variation reduces those On-site Overheads.3.9 or 9.3.5 The assessment of compensation for Cost and profit under (a) or (b) shall take into account any allowance for time-related Cost and profit included in any determination under 9.9 a percentage to cover all Off-site Overheads and Profit (except those covered under 9.3. ew (c) 9.3. where the Special Conditions state that the prices and rates in the Schedule of Prices are exclusive of Off-site Overheads and Profit. where the Special Conditions or Schedule of Prices nominate a percentage for Off-site Overheads and Profit. the amount to be deducted shall not include any allowance for Off-site Overheads or Profit or for On-site Overheads.3. or a Working Day rate has been nominated under 9. and To the extent the prices or rates in the Schedule of Prices include allowance for Off-site Overheads and Profit. and the nature or the circumstances of the Variation are such that it would be clearly inequitable to use the nominated percentages or rate.10.(a) Ze ala n d * For Off-site Overheads and Profit. or (b) Where no percentage is nominated.11.10 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3.14. 9. to the Contract Works as a whole. if any. da (a) rd This clause shall apply to any Variation for which applicable items do not exist in the Schedule of Prices and that: Does not by reason of interference or disruption increase the Cost of any other part of the Contract Works. the Contractor shall be entitled to reasonable additional compensation for such time-related Cost and profit after taking into account any allowance for timerelated Costs included in the prices and rates where the Base Value has been determined under 9.84.9 and 9. py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3.4. NZS 3910:2013 58 COPYRIGHT © Standards New Zealand . the Contractor shall record on a daily basis during the continuation of the work.5 9. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. in a manner acceptable to the Engineer.3. be signed by the Engineer or the Engineer’s Representative if possible on a daily basis and shall be the basis of payment. and 915670 165. or on behalf of. One signed copy shall be submitted with the Contractor’s payment claim and in such case shall be prima facie evidence of its content.3.4. and the quantities of Materials used for the execution of the Daywork.3.3. and the Contractor thereby incurs time-related Cost. including for this purpose any Variations which do not proceed.4 ew Where the Special Conditions or Schedule of Prices nominate a percentage for the processing of Variations the Contractor shall be paid that percentage of the value of the Variations.9.4. 6 46 07 87 22 42 14 9.10.5 or 9. If the Contract does not provide rates for Daywork it shall be paid on the basis of Net Cost plus percentages as provided in 9.10. if agreed correct. St (c) an (b) Is able to be done concurrently with other work on Site so as not to entitle the Contractor to an extension of time. Where no such percentage is nominated. These records shall.3.1 applies be carried out on a Daywork basis. If neither the Engineer nor the Engineer’s Representative is available these records shall be signed by.3. the Contractor shall be entitled to the reasonable Cost of processing Variations.14 Ze ala n d * Where by reason of a Variation a part of the Contract Works is delayed for a period greater than the delay.106. whether or not they proceed. or substantial planning and supervision.15 Daywork sN 9.2 rig ht The Engineer may order in writing that any Variation to which 9. 9. the time spent by each worker and each item of Plant.3.1 Is of a relatively minor nature not involving significant mobilisation of additional labour or Plant.4. the Contractor.9 and 9.3 For all work executed on a Daywork basis. The Contractor shall be paid for Daywork under the conditions and at the rates set out in the Contract.6 or in the evaluation of overheads and profit under 9. Plant. labour. the Contract Works. 9. To the extent that the conditions notified could not reasonably have been foreseen by an experienced contractor and will in the Engineer’s opinion substantially increase the Contractor’s Costs.5 COPYRIGHT © Standards New Zealand 59 General conditions 9.5.3 rd sN If as a result of such conditions the Contractor proposes to make an additional payment claim the Contractor shall follow such notice as soon as is practicable with details of the additional Materials. or interference with. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 ew If during the Contract the Contractor encounters on the Site physical conditions which it considers could not reasonably have been foreseen when tendering by an experienced contractor and which will in its opinion substantially increase its Costs. and programme of works proposed to be used. the anticipated delay to. the Contractor shall as soon as practicable and where possible before the conditions are disturbed notify the Engineer and confirm such notification in writing. NZS 3910:2013 . the Engineer shall forthwith investigate the conditions and after discussion with the Contractor shall determine whether or not the conditions are such as the Contractor has notified under 9.2.Unforeseen physical conditions * 9.5.5.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5. 9.106. and an estimate of the additional payment claim.84. 6 46 07 87 22 42 14 py rig ht St an 915670 165. 9.1 Ze ala n d The term ‘physical conditions’ shall include artificial obstructions but shall not include weather conditions or conditions due to weather unless those conditions occur as a result of weather away from the Site.5.4 da On receipt of such notice from the Contractor. the effect of the conditions notified shall be treated as a Variation. or (g) Default by the Principal. or other industrial action. awarded under 10. NZS 3910:2013 60 Any strike.2.2 ew The Contractor shall commence the Contract Works within 10 Working Days after it becomes entitled to possession of the Site.3 Extension of time 10. and shall then proceed with the execution of the Contract Works with due diligence except as may be sanctioned or instructed by the Engineer. if any. (f) Any circumstances not reasonably foreseeable by an experienced contractor at the time of tendering and not due to the fault of the Contractor. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1. which is not a Variation. 10.1 The Engineer shall grant an extension of the time for completion of the Contract Works or for any Separable Portion if the Contractor is fairly entitled to an extension by reason of: py (a) 6 46 07 87 22 42 14 The net effect of any Variation.1 Commencement 10.1 The period provided in the Special Conditions.5 an 10.2.2 Due Date for Completion 10.4 by the relevant Due Date for Completion. sN 10.84. rig ht 10. volcanic.3.1 Ze ala n The Contract period shall commence on the date on which the Contractor becomes entitled to possession of the Site under 5.1. or any other Person for whose acts or omissions the Principal is responsible.10 TIME FOR COMPLETION d * 10. and da (a) rd The Due Date for Completion of the Contract Works or any Separable Portion shall be calculated by adding to the date of commencement of the Contract period as defined in 10.1. (d) Loss or damage to the Contract Works or Materials.5. 915670 165.3.1: (b) All extensions of time. (c) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.106. (e) Flood.2 St The Contract Works or any Separable Portion shall be carried out to the stage of Practical Completion as defined in 10. COPYRIGHT © Standards New Zealand . lockout.1 or would become entitled but for noncompliance with the Contractor’s obligations under 8. or seismic events. (b) Weather sufficiently inclement to interfere with the progress of the works.2. or as soon thereafter as is reasonable.4. 3. The sum payable shall be calculated in accordance with 9. The Engineer shall within 20 Working Days or as soon as practicable thereafter determine whether or not the Contractor is fairly entitled to an extension and shall notify the Contractor of his or her decision.3. 9.3. 10.7.3.4 rd sN Upon receipt of notice of a claim for extension of time the Engineer shall investigate the claim. d (a) * The Engineer shall not be bound to grant an extension unless: (c) Ze ala n (b) The notice is given within 20 Working Days after the circumstances arise which are relied on as the grounds for extension. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. or as soon as practicable thereafter.3 ew Where the effect of any ground for an extension is of a continuing nature.10. and 9.The Contractor notifies the Engineer that it claims an extension and states the grounds for the extension.7 The Contractor shall not be entitled to compensation for time-related Costs where an extension of time is granted on grounds other than those in 10.5 an da Upon receipt of details of the period of extension sought by the Contractor the Engineer shall.3.5 St 10. the Contractor may give more than one notice.3. 915670 165.3.3. each claiming a specific period of extension on that ground. NZS 3910:2013 . In such case the Engineer shall grant either no extension of time or such lesser extension as may be agreed.6 6 46 07 87 22 42 14 py rig ht In any circumstances in which the Engineer determines that the Contractor is entitled to an extension of time the Engineer may. 10. COPYRIGHT © Standards New Zealand 61 General conditions 10. subject to the agreement of the Principal and the Contractor.3.3. approve the taking by the Contractor of steps to accelerate the work.106. 10. The Contractor shall be entitled to be paid such sum as may be agreed or failing agreement such sum as is reasonable to compensate the Contractor for the additional Cost of the agreed steps taken to accelerate the work and of the effect of those steps on other aspects of the work together with an allowance for profit. then determine the period of the extension and notify the Contractor of his or her decision as soon as practicable.3. 10.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.9.15.1(a) or (g).84. 9. if he or she has determined that the Contractor is fairly entitled to an extension. and The notice either gives details of the period of extension sought or is followed within a reasonable time by a further notice giving such details. 4 Practical Completion Certificate * 10.4.20.3 the Engineer shall issue a Practical Completion Certificate stating the date and time at which the Contract Works or Separable Portion were so completed. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1 in draft form in accordance with 5.10. rd 10.4.106.3 (a) Issue a Practical Completion Certificate to the Principal and the Contractor stating the date and time at which the Contract Works or Separable Portion were so completed.4.5 da Within 5 Working Days of receipt of such notice or as soon as practicable thereafter the Engineer shall inspect the Contract Works or Separable Portion and shall thereupon either: St (b) Give the Contractor written notice of the work to be altered or completed in order to qualify for a Practical Completion Certificate.4. ew (c) 10.4.3(a). and Rectification of which will not prejudice the convenient use of the Contract Works or any Separable Portion. and (b) As-built drawings and operation and maintenance manuals required under 5. 10. 6 46 07 87 22 42 14 10.6 The Practical Completion Certificate shall be in the form set out in Schedule 15 or other appropriate form as determined by the Engineer.20. (b) Which do not prevent the Contract Works or Separable Portion from being used for their intended purpose.4 rig ht On satisfactory completion of any work required under 10.4. prior to the Engineer issuing a Practical Completion Certificate. NZS 3910:2013 Producer Statements in the form set out in Schedule 6 or other form(s) as noted in the Special Conditions. 10.1 (a) Ze ala n d Practical Completion is that stage in the execution of the work under the Contract when the Contract Works or any Separable Portion are complete except for minor omissions and minor defects: Which in the opinion of the Engineer the Contractor has reasonable grounds for not promptly correcting. the Contractor shall provide to the Engineer: (a) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or an 915670 165.4.84.2 sN When the Contract Works or any Separable Portion are believed to qualify for the issue of a Practical Completion Certificate the Contractor shall notify the Engineer and Principal accordingly. 62 COPYRIGHT © Standards New Zealand .5 py If required by the Special Conditions. Payment or deduction of liquidated damages for late completion shall not relieve the Contractor from any of its other liabilities or obligations under the Contract.6.* 10.7.5.3 da rd The Principal may without prejudice to any other method of recovery deduct the amount of liquidated damages from any monies payable to the Contractor under the Contract and.4 and 12.2. the amount of any liquidated damages that would otherwise be payable in respect of the period between the Due Date for Completion and the time of Practical Completion shall be reduced by such proportion as may be equitable.5. COPYRIGHT © Standards New Zealand 63 General conditions 10. for that purpose. before the time of Practical Completion of the Contract Works or any Separable Portion of which notice has been given in the Special Conditions. 10. The liquidated damages for any Separable Portion shall not apply in respect of any period for which liquidated damages are applied in respect of the whole of the Contract Works.84.1 Ze ala n d The sum stated as liquidated damages in the Special Conditions shall be paid by the Contractor to the Principal for the period between the Due Date for Completion of the Contract Works or any Separable Portion and the time of Practical Completion. The amount of such proportional reduction shall be determined by the Engineer. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 10.2 requiring the deduction. the Principal shall occupy or use any portion thereof under 10.5 an 10.2 sN ew If. give notice to the Engineer in accordance with 12.5.1 6 46 07 87 22 42 14 py rig ht Where provided in the Special Conditions a bonus shall be paid by the Principal to the Contractor for the period between the time of Practical Completion and the Due Date for Completion of the Contract Works or any Separable Portion.6 Bonus for early completion St 10.2. 915670 165. NZS 3910:2013 .5 Damages for late completion Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5.106. Such occupancy or use shall be subject to the consent of the Contractor and to the agreement of the Principal and the Contractor that the portion of the Contract Works shall be a Separable Portion.7.2 the Contractor suffers delay in the completion of the Contract Works or incurs additional Cost.10. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.7.4 da If by reason of occupancy or use under 10. 6 46 07 87 22 42 14 py rig ht St an 915670 165. which in either case is not otherwise provided for in the Contract. NZS 3910:2013 64 COPYRIGHT © Standards New Zealand . then the effect of the occupancy shall be treated as a Variation. 10.1 or 10.7 Occupancy by the Principal * 10.84.7.2 sN ew The Principal shall be entitled prior to the issue of a Practical Completion Certificate to the occupancy or use by itself or its nominee of any portion of the Contract Works which is sufficiently completed to allow such occupancy or use without undue interference with the work of the Contractor.7.7.3 rd Occupancy or use under 10.7. 10. 10.7.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.106.7.1 Ze ala n d The Principal shall be entitled to the occupancy or use by itself or its nominee of the Contract Works or any Separable Portion once a Practical Completion Certificate has been issued.1 or 10. The Contractor shall not unreasonably withhold its consent and its agreement to the portion of the Contract Works being a Separable Portion.2 shall not affect any of the obligations of the Contractor. Defects Notification Period * 11.1 Ze ala n d The Defects Notification Period for the Contract Works or any Separable Portion shall commence on the date of Practical Completion of the Contract Works or Separable Portion. The Defects Notification Period shall be 3 Months unless some other period is stated in the Special Conditions. 11.2 Remedying of defects 11.2.1 sN ew The Contractor shall remedy defects and damage in the Contract Works resulting from defective workmanship or Materials that arise before the end of the Defects Notification Period. The Engineer shall, during the Defects Notification Period or within 5 Working Days thereafter, give notice in writing to the Contractor of defects or damage to be remedied. The Contractor shall remedy any such defects or damage within 5 Working Days of receipt of the Engineer’s notice or within such other reasonable time as agreed by the Engineer in writing. rd 11.2.2 915670 165.84.106.5 da If the Contractor fails to carry out any work notified under 11.2.1 within the time required under 11.2.1, the Engineer may, after giving 5 Working Days’ further written notice to the Contractor stating that it is given under this clause, direct others to undertake the work. an 11.2.3 St The reasonable Cost of the work undertaken by others under 11.2.2 shall be recoverable by the Principal from the Contractor. As soon as practicable after completion of the work, the Engineer shall notify the Contractor of the work undertaken and its Cost. rig ht 11.2.4 The taking of any action by the Engineer under 11.2.2 shall not relieve the Contractor of any of its obligations under the Contract. 6 46 07 87 22 42 14 11.2.5 py The Contractor shall not be liable for fair wear and tear during the Defects Notification Period. 11.2.6 The Engineer may direct the Contractor to search for any defect prior to the expiry of the Defects Notification Period. Unless the defect is one which the Contractor is liable to rectify, the search and any remedial work shall be treated as Variations. COPYRIGHT © Standards New Zealand 65 General conditions 11 DEFECTS LIABILITY Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 11.2.7 d * The Contractor shall have the right of entry on to the Site at reasonable times for the purpose of searching for defects or carrying out remedial work. Ze ala n 11.2.8 Outstanding work under 5.6.3, 5.20, and 10.4.1 shall be deemed to be remedial work for the purposes of 11.2.2 and 11.2.7. 11.3 Final Completion Certificate 11.3.1 (a) ew The Engineer shall issue to the Principal and to the Contractor a Final Completion Certificate for the Contract Works or any Separable Portion when in respect of the Contract Works or that Separable Portion: The Defects Notification Period under 11.1 has expired; and sN (b) The Contractor has remedied all minor omissions and defects under 10.4.1 and all defects notified by the Engineer under 11.2. rd 11.3.2 (a) 915670 165.84.106.5 da If required by the Special Conditions, prior to the Engineer issuing a Final Completion Certificate the Contractor shall provide to the Engineer: Producer Statements in the form set out in Schedule 6, or other form(s) as noted in the Special Conditions; and an (b) As-built drawings and operation and maintenance manuals required under 5.20.1 in final form in accordance with 5.20. St 11.3.3 rig ht The Final Completion Certificate shall be in the form set out in Schedule 16 or other appropriate form as determined by the Engineer. 11.4 Effect of Final Completion Certificate 6 46 07 87 22 42 14 11.4.1 py Notwithstanding the issue of the Final Completion Certificate, the Contractor shall remain liable for the fulfilment of any obligation of the Contractor under the Contract which then remains unperformed or not properly performed. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 66 COPYRIGHT © Standards New Zealand * 11.5.1 Ze ala n d The Contractor shall provide the Principal with written warranties where required by the Special Conditions. 11.5.2 Such warranties shall be supplied to the Engineer in writing before the Engineer issues the Practical Completion Certificate and shall be in the form set out in Schedule 13 or as otherwise acceptable to the Engineer. 11.5.3 ew Notwithstanding the supply of any warranty, the Contractor shall remain liable for the fulfilment of all obligations of the Contractor under the Contract. sN 11.6 Guarantees 11.6.1 rd The Contractor shall provide the Principal with written guarantees where required by the Special Conditions. da 11.6.2 an Such guarantees shall be supplied to the Engineer in writing before the Engineer issues the Practical Completion Certificate and shall be in the form required by the Special Conditions. 915670 165.84.106.5 11.6.3 6 46 07 87 22 42 14 py rig ht St Notwithstanding the supply of any guarantee, the Contractor shall remain liable for the fulfilment of all obligations of the Contractor under the Contract. COPYRIGHT © Standards New Zealand 67 General conditions 11.5 Warranties Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 Indicate the due date for payment which shall be 17 Working Days after the date of service of the payment claim.1 Ze ala n The Contractor may submit payment claims under the Contract.106.2 12.8. payment claims may only be submitted for work carried out during periods of not less than 1 Month.1 Contractor’s payment claims 12. the claimed amount in respect of those Contract Works and the manner in which the claimed amount has been calculated. include the execution of an agreement in the form set out in Schedule 14 or other appropriate form py (v) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1. state that it is made under that Act and include any information required by that Act. and (d) Where the payment claim is intended to be a payment claim under the Construction Contracts Act.6. and at the same time a copy of the payment claim shall be provided to the Principal. NZS 3910:2013 68 (c) 6 46 07 87 22 42 14 The estimated value of Cost fluctuations for which payment is provided under 12. excluding Variations (ii) The estimated extent and value of all work done or other Cost which is claimed for Variations da (i) 915670 165. The conditions may. and subject to the conditions stated in the Special Conditions. 12.84.3 The Contractor’s payment claims shall: Identify the Contract and the relevant period to which the payment claim relates. and (vi) The estimated amount of any bonus to which the Contractor claims to be entitled under 10.5 St an (iii) Where provided for in the Special Conditions.1.1. rd (b) Identify the Contract Works to which the payment claim relates. COPYRIGHT © Standards New Zealand . Payment claims shall be served on the Engineer as agent of the Principal. in the case of Materials not yet on Site. advances for the estimated value of Materials delivered to the Site which are intended to be incorporated in the Contract Works but have not yet been so incorporated rig ht (iv) Any advances for Temporary Works or Plant or for Materials not yet on Site for which payment is provided in the Special Conditions. sN (a) ew Unless otherwise provided in the Contract.12 PAYMENTS d * 12. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. subject to the conditions stated in the Special Conditions. in particular: The estimated extent and value of the Contract Works which has been carried out. 3.1 and 12. (f) Set out the reason or reasons for any difference between the sum under 12. COPYRIGHT © Standards New Zealand 69 General conditions 12.2. and (h) State that the Progress Payment Schedule is provisional only until the expiry of 12 Working Days after the date of service in 12. less previous sums certified by the Engineer under 12.2 (a) ew Not later than 7 Working Days after the date of service of each payment claim.4 Not later than 10 Working Days after the date on which the relevant payment claim was served on the Engineer.2.2. 12.106.2. Such notice shall show the reasons for the amendments or deductions and the manner in which they have been calculated. provide a Progress Payment Schedule in response to each payment claim not later than 12 Working Days after the date of service of the payment claim.2. 12.2(d) shall be the provisional scheduled amount.2.84.2. 915670 165.2(b).2. (g) State that the sum under 12. which shall be provisional in accordance with 12. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2(d). da rd (d) Show the sum certified by the Engineer.2. NZS 3910:2013 .3 py If any item of the Contractor’s payment claim cannot be verified within the prescribed time.2(h) and shall: Identify the Contractor’s payment claim to which it relates.2(d) and the claimed amount. the Engineer shall within that time certify under 12. and the due date for payment under 12.2(d) has been calculated.2(d) shall become the scheduled amount unless within that time a replacement Progress Payment Schedule is provided under 12.2(d) a reasonable estimate of the amount due. Identify the date when the Progress Payment Schedule is provided. in accordance with the following process.2.2. the Principal may notify the Engineer in writing (with a copy to the Contractor) of any amendments or deductions that the Principal intends to make from the sum certified by the Engineer. provide a Progress Payment Schedule to the Contractor and a copy to the Principal. which shall comprise the value of the Contractor’s payment claim amended as necessary under 12.5.* 12.8.2. on behalf of the Principal. (c) sN (b) Identify the date when the payment claim was served on the Engineer.5 Show the manner in which the sum under 12.1 Ze ala n d The Engineer shall assess each of the Contractor’s payment claims and may amend them as necessary to comply with the terms of the Contract and with the Engineer’s valuation of the work carried out.2.2. The Engineer shall. rig ht St an (e) 6 46 07 87 22 42 14 12.2.2 Progress Payment Schedules Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and less any other deductions required by the Contract or by law. the Engineer shall. after which time the sum under 12. except as provided in the Contract.2.1(a) and not under 6.5 (b). the Engineer shall be acting only as the agent of the Principal under 6.12.4 that it requires any amendments to or deductions from amounts payable to the Contractor shall not prevent the Principal from requiring any amendments or deductions from subsequent Payment Schedules.2.2. which shall be the sum certified by the Engineer under 12.1(b). COPYRIGHT © Standards New Zealand . then not later than 12 Working Days after the date on which the relevant payment claim was served on the Engineer.5.2. which shall contain: (b) The amendments or deductions which the Principal has notified under 12.2.2. Ze ala n d * In the event that the Principal has notified the Engineer and the Contractor of any amendments or deductions under 12.2.2(d) (and which shall not be deemed to be certified by the Engineer). provide a replacement Progress Payment Schedule to the Contractor and a copy to the Principal.2.2. The reasons for and the manner in which such amendments and deductions have been calculated.2.5 da rd Where no replacement Progress Payment Schedule is provided within the time required under 12.2(d) or 12.2. 6 46 07 87 22 42 14 py 12.2.106.2.1. on behalf of the Principal.5 (a) The information stated under 12. an 12.6 915670 165. sN (e) 12.9 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4.2 in respect of the relevant payment claim. together with the amount of goods and services tax payable shall be paid by the Principal to the Contractor within 17 Working Days after the date on which the Contractor’s payment claim was served on the Engineer under 12. ew (c) (d) The scheduled amount.2.2(d) as amended by the amendments and deductions under 12.8 The scheduled amount under 12.2. rig ht 12.2 (a) to (f).2 (d) shall become the scheduled amount.2. the provisional Progress Payment Schedule under 12.4 and which are not included in the sum certified by the Engineer under 12.2.84. and A statement that the Progress Payment Schedule supersedes the Progress Payment Schedule provided under 12.7 St When including in a Progress Payment Schedule any amendments and deductions required by the Principal. the Engineer shall.5(d) as the case may be.2.2.2. or prejudice any other method of recovery of such deductions or the Principal’s right to dispute any sum certified by the Engineer.1. NZS 3910:2013 70 Failure by the Principal to notify the Engineer or Contractor under 12. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 shall become the Progress Payment Schedule and the sum certified by the Engineer under 12. 7.2 by such percentage as shall be equitable.3.3 an (c) St 915670 165. such retention monies as are required under the Special Conditions in respect of the whole of the Contract Works or any Separable Portion. Where such a bond is provided. 12. 12. The bond shall be for an amount equal to the limit of the total sums required to be retained under 12.106.2 at the time of the progress payment. sN (a) ew The monies retained.2 shall not apply. as part of the first and any subsequent progress payment after the end of the Defects Notification Period for the whole of the Contract Works or for the Separable Portion. of any amount in excess of the defects liability retention specified in the Special Conditions. and 6 46 07 87 22 42 14 py rig ht Unless otherwise provided in the Special Conditions.2.1. less any deductions which the Principal is entitled to make.3. the Contractor may provide a bond in lieu of retentions in addition to any bond required under 3.1 Ze ala n d The Principal shall retain out of the amount which would otherwise be payable to the Contractor.3. as part of the first progress payment after the issue of the Practical Completion Certificate for the whole of the Contract Works or for the Separable Portion.2. of the defects liability retention less the Engineer’s assessment of the value of the Contract Works remaining to be completed in accordance with 11. shall be paid to the Contractor as follows: By payment of any remaining defects liability retention 10 Working Days after the date of the Final Completion Certificate for the whole of the Contract Works or of the Separable Portion.2 and 11.3 Retention monies Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3.1. COPYRIGHT © Standards New Zealand 71 General conditions 12.3. The percentage reduction shall be determined by the Engineer. 12.1 and 12.2 By payment. The assessed value of such remaining Contract Works shall be the assessed Cost to the Principal of making good those omissions and defects in accordance with 11. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3. The amount to be retained in respect to the Contract Works shall be reduced upon the completion of any Separable Portion under 10.3. The bond shall be in the form set out in Schedule 5 and shall be executed by the Contractor and by the surety named in the tender or approved by the Principal.5 da rd (b) By payment.84. NZS 3910:2013 .* 12. The final payment claim shall be served on the Engineer as agent of the Principal and at the same time a copy of the final payment claim shall be provided to the Principal. shall be 45 Working Days after the date of service of the final payment claim.12. and shall be the Contractor’s final payment claim under the Contract. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 12. the amount or amounts claimed by the Contractor in respect of all outstanding claims. St (e) da (d) Indicate the due date for payment which. and 915670 165. NZS 3910:2013 72 COPYRIGHT © Standards New Zealand . the Contractor shall submit a final account of all the Contractor’s payment claims in relation to the Contract. The final account shall be signed by the Contractor and endorsed ‘final payment claim’. The Principal shall not be liable to the Contractor for any matter in connection with the Contract unless contained within the final payment claim but this shall not preclude the later correction of any clerical or accounting error.5 6 46 07 87 22 42 14 py rig ht Submission of the final payment claim by the Contractor shall be conclusive evidence that the Contractor has no outstanding claim against the Principal other than as contained therein.4.1 Ze ala n d Not later than 1 Month after the issue of the Final Completion Certificate or within such further time as the Engineer may reasonably allow. state that it is made under that Act and include any information required by that Act. except for any item which has been referred to arbitration under Section 13 or to Adjudication. rd (c) 12.3 an Where the final payment claim is intended to be a payment claim under the Construction Contracts Act. sN (a) ew The final payment claim shall: (b) Identify the work to which the final payment claim relates (which shall include all Contract Works yet to be completed by the Contractor or paid for by the Principal).4. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and the manner in which all such sums have been calculated.2 Identify the Contract and the relevant period or periods to which the final payment claim relates. Show the claimed amount in respect of that work.4 Final payment claim * 12. subject to 12.4.106.5.6.84. which shall cover the period up until completion of all of the Contractor’s obligations under the Contract. rd sN (d) Show the sum certified by the Engineer. which shall comprise the value of the Contractor’s final payment claim amended as necessary under 12.1(d) and the claimed amount.5. Such notice shall show the reasons for the amendments or deductions and the manner in which they have been calculated.6.5. Identify the date when the Final Payment Schedule is provided. (f) Set out the reason or reasons for any difference between the sum under 12.5.2. after which time the sum under 12.5.5.5.3.5. provide a Final Payment Schedule to the Contractor and a copy to the Principal. (c) ew (b) Identify the date when the final payment claim was served on the Engineer.5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Show the manner in which the sum under 12. Not later than 20 Working Days after the date of service of the final payment claim.1(d) shall be the provisional scheduled amount. 6 46 07 87 22 42 py 14 COPYRIGHT © Standards New Zealand 73 General conditions 12. the Principal may notify the Engineer in writing (with a copy to the Contractor) of any amendments or deductions that the Principal intends to make from the sum certified by the Engineer.5. NZS 3910:2013 .* 12.1(d) shall become the scheduled amount unless within that time a replacement Final Payment Schedule is provided under 12.106. and less any other deductions required by the Contract or by law.9.1(d) has been calculated.5.1. the Engineer shall.2(d).5 Final Payment Schedule Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1(b).1 (a) Ze ala n d The Engineer shall assess the final payment claim and may amend it as necessary to comply with the terms of the Contract and with the Engineer’s valuation of the work carried out. an St 915670 165.2 Not later than 30 Working Days after the date on which the final payment claim was served on the Engineer. provide a Final Payment Schedule in response to the final payment claim not later than 35 Working Days after the date of service of the final payment claim. which shall be provisional in accordance with 12. and (h) State that the Final Payment Schedule is provisional only until the expiry of 35 Working Days after the date of service in 12. (g) State that the sum under 12.5. Subject to 12. the Engineer shall.5 da (e) rig ht 12. less previous sums certified by the Engineer under 12. in accordance with the following process. and the due date for payment under 12.1(h) and shall: Identify the final payment claim to which it relates.5. on behalf of the Principal.84. 5 St When including in a Final Payment Schedule any amendments and deductions required by the Principal.5.5.5.6. which shall be the sum certified by the Engineer under 12. and the process under 12. the Engineer shall be acting only as agent of the Principal under 6.5 da rd Where no replacement Final Payment Schedule is provided within the time required under 12.2.2.5. sN (e) 12.1.5.2. and A statement that the Final Payment Schedule supersedes the Final Payment Schedule provided under 12.5. the Engineer shall issue a certificate in the form of a Progress Payment Schedule in accordance with 12. The Engineer shall also issue further explanatory statements at Monthly intervals (or other periods determined by the Engineer as reasonable) until the provision of the Final Payment Schedule under 12. the Final Payment Schedule under 12. Ze ala n d * In the event that the Principal has notified the Engineer and the Contractor of any amendments or deductions under 12.5.5.2 and which are not included in the sum certified by the Engineer under 12.1.5. an 12.2.6 If the Engineer is unable to provide a Final Payment Schedule within the period of 20 Working Days referred to in 12.1(d) (and which shall not be deemed to be certified by the Engineer).1 shall be provided no later than 6 Months after the date of the Final Completion Certificate. At the time of issuing any explanatory statement under 12.1(b).5.5.1 shall become the Final Payment Schedule and the sum certified by the Engineer under 12.1(a) to (f). the Engineer shall. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 shall apply as if the final payment claim had been served as a progress payment claim 7 Working Days prior to the date of the Progress Payment Schedule issued under 12.106.1(d) as amended by any amendments and deductions under 12.5.12.5. provide a replacement Final Payment Schedule to the Contractor and a copy to the Principal. then not later than 35 Working Days after the date on which the final payment claim was served on the Engineer.1(d) shall become the scheduled amount.5.3. the provisional Final Payment Schedule provided under 12.1. The reasons for and the manner in which such amendments and deductions have been calculated. 6 46 07 87 22 42 14 py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5.3 (a) The information stated under 12.3(b).6. 74 COPYRIGHT © Standards New Zealand .1(a) and not under 6.5.2 for all amounts due under the Contract which can reasonably be certified at that time. which shall contain: (b) The amendments or deductions which the Principal has notified under 12. on behalf of the Principal.6.5.5. NZS 3910:2013 Where the Engineer issues Progress Payment Schedules under 12.5. the Engineer shall before the expiry of that period issue a statement of the reasons why a Final Payment Schedule cannot be issued or otherwise dealt with in accordance with the Contract. rig ht 12. ew (c) (d) The scheduled amount.5.84.4 915670 165. 1 rig ht Upon the issue of the Final Payment Schedule the Principal shall cease to be liable to the Contractor in respect of any of the Principal’s obligations under the Contract.3(d) as the case may be.1.Ze ala n d * If the Contractor fails to submit its final account under 12. then the Engineer shall forthwith issue a further certificate in the form of a Final Payment Schedule incorporating the amendment.1 to 12.1 to 12.6.3 which are or become payable.5.5 St 12.5.5. and the process under 12. rd 12.5. the date when the provisional Final Payment Schedule becomes the Final Payment Schedule.106. 20 Working Days prior to the date of that Final Payment Schedule. the Engineer may issue a certificate in the form of a Final Payment Schedule for such amount.1.5.4.5.10 da Failure by the Principal to notify the Engineer or Contractor under 12.5.5. except as provided in the Contract.5.7 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 12. ew 12. (d) To pay interest which is or becomes payable under 12.84. an 915670 165.4. except for the Principal’s obligations: (a) To pay the scheduled amount shown as payable in the Final Payment Schedule.1(d).1(d) or 12.5.5. as he or she may assess as if the Contractor had submitted a final payment claim.5.7. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 shall apply.2 which amends the Final Payment Schedule. 6 46 07 87 22 42 14 (b) To pay any retention monies under 12. and (e) To pay any scheduled amounts shown in any Payment Schedule provided prior to the provision of the Final Payment Schedule but unpaid at that time. COPYRIGHT © Standards New Zealand 75 General conditions 12. and the process under 12.6 Effect of Final Payment Schedule 12. py (c) To pay any monies which are or become payable under Section 13. together with the amount of goods and services tax payable shall be paid by the Principal to the Contractor within 10 Working Days of the date of the Final Payment Schedule or.8 If the Engineer gives a decision under 13. in the case of a scheduled amount under 12. if any. NZS 3910:2013 .9 sN The scheduled amount under 12.2 that it requires any amendments to or deductions from amounts payable to the Contractor shall not prejudice any other method of recovery of such deductions or the Principal’s right to dispute any sum certified by the Engineer.5 shall apply as if a final payment claim had been served under 12. 8. 915670 165.5 rig ht The right to interest shall be additional to any other remedy to which the Contractor may be entitled at law.1 Ze ala n d The Principal shall pay the Contractor interest compounding Monthly on all scheduled amounts shown as payable in any Payment Schedule and remaining unpaid after the expiry of the time provided for payment. NZS 3910:2013 76 Payment claims for Cost fluctuation adjustments in accordance with 12.2 ew In the event of unreasonable delay in the provision of a Payment Schedule for any payment claim or part of a payment claim which is later the subject of a Payment Schedule. 12.8 may be submitted by the Contractor each Month and a detailed summary of all such payment claims shall be submitted with the final payment claim.5 St 12. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84.8. the Contractor shall be entitled to interest compounding Monthly on that amount from the date on which it would have been payable if the unreasonable deduction had not occurred down to the date of payment. da 12.7.1 6 46 07 87 22 42 14 py A Cost fluctuation adjustment shall be paid in accordance with the provisions of Appendix A unless otherwise provided in the Special Conditions.7.106.7. COPYRIGHT © Standards New Zealand .2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.7 Interest * 12. 12.4 an The rate of interest shall be equal to one and a half times the monthly small to mediumsized enterprise (SME) overdraft rate published by the Reserve Bank of New Zealand over the relevant period.7.12.3 rd sN In the event of unreasonable deduction of any amount from any Contractor’s payment claim or final payment claim being made in any Payment Schedule. the Contractor shall be entitled to interest compounding Monthly on the scheduled amount from the date on which it would have been payable if the delay had not occurred down to the date of payment.7. and where such amount is later paid by the Principal or found by an adjudicator to be payable by the Principal. 12.8 Cost fluctuations 12. 12. 2 shall apply to Provisional Items. NZS 3910:2013 .10. 6 46 07 87 22 42 14 12.* 12.84. 12. Such sums shall be expended only on the instructions of the Engineer and as provided below. or to have the work performed by a Nominated Subcontractor.1 and 12.9.9 Provisional Sums Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 Ze ala n d Provisional Sums may be provided for work which is to be executed by the Contractor or by a Nominated Subcontractor or for any item the Cost of which is to be borne by the Contractor. 12. the amount payable to that Nominated Subcontractor under the terms of the subcontract approved by the Engineer together with a reasonable allowance for the Contractor’s expense and profit on the work to which the Provisional Sum relates.1 rig ht Provisional Items may be provided for individual elements of work. sN 12.9.10. 12.10.9. at the rate set out in the Schedule of Prices. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3 The amount payable to the Contractor in respect of work covered by a Provisional Sum shall be varied by the substitution for the Provisional Sum of the following: Where work to which the Provisional Sum relates has been carried out by the Contractor. as determined by the Engineer.9. with rates against nominal quantities in the Schedule of Prices. the value of the work so executed shall be valued as a Variation.106. or ew (b) Confer on the Principal the right to carry out the work or to have it carried out by others.9.3 The amount payable to the Contractor in respect of work covered by a Provisional Item shall be calculated according to the measured quantity of the work. or rd (a) 915670 165.10 Provisional Items an da (b) Where work to which the Provisional Sum relates has been carried out by a Nominated Subcontractor.2 The inclusion in the Contract of any Provisional Sum shall not: (a) Confer on the Contractor or its Subcontractor the right to perform the work to which the sum relates. COPYRIGHT © Standards New Zealand 77 General conditions 12.5 St 12.2 py The provisions of 12. 12.2 78 Any payment claim or final payment claim prepared by the Contractor shall not be a GST Invoice.1 da 12.12 Contingency sums rd (b) A reasonable allowance for the Contractor’s expense and profit on the Materials to which the Prime Cost Sum relates.13. Unless stated otherwise in the Special Conditions. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. NZS 3910:2013 12. Such sums shall be expended only on the instructions of the Engineer as provided below.11 Prime Cost Sums * 12. 12. COPYRIGHT © Standards New Zealand .11.2 The Contractor shall obtain quotations and samples for the Materials covered by the Prime Cost Sums as required by the Engineer and submit them to the Engineer for his or her instructions.2 or Final Payment Schedules under 12.5.1 Clause 12. 12.12. and sN (a) 915670 165. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.11. and for which freedom of selection by the Engineer is reserved. 12.13 shall only apply where both the Principal and the Contractor are registered under the Goods and Services Tax Act. ew 12.3 The amount payable to the Contractor in respect of Materials covered by a Prime Cost Sum shall be varied by the substitution for the Prime Cost Sum of both of the following: The net purchase price payable by the Contractor on the instructions of the Engineer (without deduction of any cash discount for early payment). The contingency sum shall be deducted from the Contract Price.1 Ze ala n d Prime Cost Sums may be provided for Materials to be supplied by the Contractor or by a Nominated Subcontractor for incorporation into the Contract Works.2 St an Contingency sums may be provided for any work which may be executed by the Contractor.13.106.12. Such sums shall be expended only on the written instruction of the Engineer.13 Goods and services tax 6 46 07 87 22 42 14 py 12. but the expenditure on which is unknown at the time of calling tenders. when the Engineer provides Progress Payment Schedules under 12. rig ht All work carried out under a contingency sum shall be a Variation.5 12.11. he or she shall on behalf of the Principal ensure that the Payment Schedules are in the form required to constitute a GST Invoice.84. 4).1 or to Adjudication within 3 Months after it has been given. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. shall be dealt with under the following provisions of this Section.2.1.1 ew Ze ala n No decision. Every decision. 13.2 sN Every dispute or difference concerning the Contract which is not precluded by the provisions of 12.1 General 13.106.1. This subclause 13.3 The Engineer and the Contractor may. 13. or certificate of the Engineer shall be questioned or challenged more than 3 Months after it has been given or more than 1 Month after the date on which any relevant Adjudicator’s Determination is given to the parties.2.2.d * 13. 12.2.2.1. ask for a meeting. whichever is the later. and in such case the Engineer and a representative of the Contractor shall meet as soon as practicable and endeavour to resolve the dispute amicably.4 the Engineer may correct or modify his or her decision by a subsequent decision in writing. valuation. with the consent of the Principal. jointly submit the dispute or any question arising in connection with it to an agreed expert. Except in the case of a decision under 13. 13.1 rig ht Every dispute or difference under 13.1.1. 12.3 915670 165. 13. unless notice has been given to the Engineer within that time.84.1 or 13.4 or more than 1 Month after the date on which any relevant Adjudicator’s Determination is given to the parties. unless notice has been given to the Engineer within that time.1 shall not apply to a Progress Payment Schedule.1.5. 13. before or after the Engineer has given a decision (other than a decision under 13.5.3. valuation. 6 46 07 87 22 42 14 py 13. The Engineer shall give his or her decision in writing. but in the absence of any such agreement the provisions of Section 13 shall continue to apply and neither party shall be entitled to suspend or delay any dispute resolution under this Section 13 due to any Adjudication proceedings. whichever is the later.1. or certificate of the Engineer shall be final and binding if neither party has referred it to the Engineer under 13.2 shall be referred to the Engineer not later than 1 Month after the provision of the Final Payment Schedule under 12. COPYRIGHT © Standards New Zealand 79 General conditions 13 DISPUTES Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4. NZS 3910:2013 .2.2 The Engineer or the Principal or the Contractor may.5.2.5 St 13.6. The Principal and the Contractor shall each pay one half of the costs of the agreed expert. with a request to make a recommendation to assist them to resolve the matter. or 12.2 Engineer’s review an da rd The Principal and the Contractor may at any stage agree to suspend any dispute resolution under this Section 13 due to any Adjudication proceedings. 3 Mediation 13. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 St an A notice requiring mediation shall be in writing and shall be given by the Principal or the Contractor to the other of them within 1 Month after the time prescribed for the giving of the Engineer’s formal decision under 13. Upon making a formal decision the Engineer shall forthwith send copies of it to both the Principal and the Contractor.3.13.3.3 and 13. The Engineer shall give a formal decision on the matter within 20 Working Days of receiving notice in writing from the Principal or the Contractor requiring him or her to give a formal decision and expressly referring to this subclause 13. All discussions in mediation shall be without prejudice. and shall each pay half the costs of the mediator. The Engineer’s formal decision shall. 13.3 and is awaiting a recommendation from the agreed expert.4.4 Ze ala n d * Unless the dispute or any question arising in connection with it has been referred under 13.106.2. in respect of any dispute or difference under 13. be final and binding. or rd (b) No formal decision is given by the Engineer within the time prescribed by 13. The Principal and the Contractor shall bear their own Costs in the mediation.2.2.2.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 13. and shall not be referred to in any later proceedings. COPYRIGHT © Standards New Zealand . The mediator shall discuss the matter with the parties and endeavour to resolve it by their agreement.3 6 46 07 87 22 42 14 py rig ht Where a request for mediation is made and is acceded to by the other party then the Principal and the Contractor shall endeavour to agree on a mediator and shall submit the matter in dispute to him or her. The mediator’s decision shall in such case be binding on both parties unless within 10 Working Days either party notifies the other in writing that it rejects the mediator’s decision.2. NZS 3910:2013 80 The Principal and the Contractor may at any stage agree to invite the mediator to give a decision to determine the matter.4.4.1 (a) sN If either: The Principal or the Contractor is dissatisfied with the Engineer’s formal decision under 13.4 or any Adjudication proceedings.2.3. the Engineer may. 915670 165.5 da then either the Principal or the Contractor may by notice require that the matter in dispute be referred to mediation.3.2. subject to 13.84. 13.4.2.4. ew 13. at any time.1 give a decision (in this Section called ‘a formal decision’) which states expressly that it is given under this subclause 13. 915670 165.2. No agreement has been reached in mediation and no decision has been given by the mediator within 2 Months of the request for mediation. or within such further time as the parties may agree.2. within 1 Month after any such determination is given. St 13.4. or py (c) Where the Engineer has issued a formal decision under 13.3.106. ew then either the Principal or the Contractor may by notice require that the matter in dispute be referred to arbitration. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.Mediation has been requested.3.3 The dispute shall be referred to a sole arbitrator. rig ht (a) 6 46 07 87 22 42 14 (b) Within 1 Month after the happening of the event described in 13. NZS 3910:2013 .5 which gives rise to the right to arbitration.4. COPYRIGHT © Standards New Zealand 81 General conditions 13.1 If either: The Principal or the Contractor is dissatisfied with the Engineer’s formal decision under 13. d (a) * If: (c) Ze ala n (b) The parties have agreed upon mediation but have been unable within 10 Working Days of such agreement to agree upon a mediator. 13.4.5 which gives rise to the right to arbitration.2.4. the arbitrator shall be nominated by the Person identified in the Special Conditions and the provisions of the Arbitration Act shall apply.3. whichever shall be the earlier. or an event has happened under 13.4 or after the time prescribed for the giving of the Engineer’s formal decision. If the parties cannot agree upon the arbitrator. or (d) Either party has within the prescribed time rejected the mediator’s decision. or rd (a) da (b) No formal decision is given by the Engineer within the time prescribed by 13. but has not been agreed upon within 10 Working Days of the request. sN 13.5 an then either the Principal or the Contractor may by notice require that the matter in dispute be referred to arbitration.4 Arbitration 13.2 A notice requiring arbitration shall be in writing and shall be given by the Principal or the Contractor to the other of them: Within 1 Month after the Engineer’s formal decision under 13.4.2.4.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.84. and a relevant Adjudicator’s Determination is subsequently given to the parties. instruction. review. Where any item is in dispute.5 shall affect the Contractor’s rights under the Construction Contracts Act.1 to 12. ew 13.106. NZS 3910:2013 13.6 sN Where the matter has been referred to mediation. or (b) Is in issue in the arbitral proceedings but is paid before the date of the award.2. direction. 13.2 and include such amount in a certificate in the form of a Progress Payment Schedule and the process under 12. 13.4.5 No decision given by the Engineer in accordance with his or her duties under the Contract shall disentitle him or her from being called as a witness and giving evidence before any hearing on any matter relevant to the dispute.7 915670 165. 13. opinion.13.1 an No dispute proceeding shall entitle the Contractor to suspend the execution of the Contract Works. for the whole or any part of the period up to the date of payment. 82 COPYRIGHT © Standards New Zealand .84.5 Suspension during dispute rd The award in the arbitration shall be final and binding on the parties.4. No reference shall be made to the decision. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2. or valuation of the Engineer or any Payment Schedule and to award upon all questions referred to him or her.5. the Engineer shall certify such amount as is properly payable according to his or her view as to the terms of the Contract and his or her valuation in accordance with 12.2 6 46 07 87 22 42 14 py rig ht No Payment Schedule nor payment due or payable shall be withheld on account of dispute proceedings. except in accordance with the instructions of the Engineer. Neither party to the arbitration shall be limited to the evidence or arguments put before the Engineer for his or her review or put before a mediator or adjudicator or included in any payment claim or Payment Schedule.9 shall apply.3 Nothing in 13. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. No payment due under Section 12 shall be withheld by reason of the existence of any dispute. if any. and revise any decision.4. for the whole or any part of the period up to the date of the award. certificate. the mediator shall not be called by either party as a witness.5 da 13.4.4 Ze ala n d * The arbitrator shall have full power to open up.5.5. St 13.6 Award of interest The arbitrator may award interest on the whole or any part of any sum which: (a) Is awarded to any party. 13. given by the mediator in respect of the matter in dispute. Any Cost reasonably incurred by the Contractor in the expectation of completing the Contract Works in so far as such Cost is not covered by other payments under 14.1. (f) The Cost of any works necessitated by the removal of Contractor’s Plant and the carrying out of the Engineer’s instructions for the making safe of the Contract Works.1 Ze ala n In the event that either the Principal or the Contractor considers that the Contract has become impossible of performance or has been otherwise frustrated.106. 6 46 07 87 22 42 14 py (g) COPYRIGHT © Standards New Zealand 83 General conditions 14 FRUSTRATION AND DEFAULT Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Any other Costs resulting from the termination as are reasonable to compensate the Contractor for disruption and are not otherwise provided in the Contract.2(d).1.2 (a) ew The Engineer shall certify and the Principal shall pay the Contractor: The value of the work carried out at the date of termination less the amounts previously paid. or in the event of disagreement if it is so determined by the Engineer or by mediation or arbitration under Section 13.d * 14.1 Frustration 14.84. These Materials shall become the property of the Principal upon delivery to the Principal. then 14. 14. If the other party agrees. (c) Cost fluctuation adjustments due and payable up to the date of termination.1. one may notify the other that it considers the Contract to be terminated.2 shall apply.5 rd sN (b) The Cost of Materials ordered for the Contract Works which have been delivered to the Contractor or of which the Contractor is legally obliged to accept delivery. NZS 3910:2013 .1.2(a) to 14. da (d) Fair compensation to the Contractor for any Cost which is included in a rate in the Schedule of Prices to the extent that the termination of the Contract causes an under-recovery of that Cost.1. and St an (e) rig ht 915670 165. and which the Contractor delivers to the Principal. either terminate the Contract or resume possession of the Site. liquidator.84.2 Default by the Contractor * 14.2 it may: (a) Forthwith expel the Contractor without terminating the Contract or relieving the Contractor from any of its obligations under the Contract.1 or 14. the Principal may at its option. (b) The Contractor subletting the whole or substantially the whole of the Contract Works without the consent in writing of the Principal.2.2. receiver.2 In the event of the Contractor: Becoming bankrupt.6 or provide the Contractor’s Bond under 3. NZS 3910:2013 Take possession of.106.2. ew (c) sN and the Contractor’s default has not been remedied within 10 Working Days of receiving the notice. In any such case the Contractor shall not be entitled to any further payment until the completion of the Contract Works. 14. rd (a) (b) Going into liquidation. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3 rig ht If the Principal elects to resume possession of the Site under the provisions of 14. da (c) 915670 165. 6 46 07 87 22 42 14 py (b) Complete and remedy defects in any part of the Contract Works remaining to be completed and for that purpose may let contracts for such work or employ any Persons other than the Contractor. Plant. use. flagrantly or wilfully neglecting to carry out its obligations under the Contract.2. 14. or The Engineer certifying in writing to the Principal that in his or her opinion the Contractor has abandoned the Contract or is persistently. (c) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.14. or Having a receiver or statutory manager appointed. and other things which are on the Site owned by the Contractor and are necessary for completing and remedying defects in the Contract Works.1 where required by the Contract.2. Temporary Works. or statutory manager fails within 10 Working Days to make arrangements satisfactory to the Principal for the execution of the Contract Works. and (d) Require the Contractor to arrange within 10 Working Days the assignment to the Principal or its nominee without payment the benefit of any agreement for the supply of Materials or execution of work under the Contract. 84 COPYRIGHT © Standards New Zealand . and permit other Persons to use Materials.5 St an and the assignee.1 (a) Ze ala n d The Principal may at its option after giving notice to the Contractor either terminate the Contract or resume possession of the Site in the event of: The Contractor failing to execute the Contract Agreement under 2. after giving notice to the Contractor. rig ht (a) (b) Failing to pay the Contractor the amount due under any Payment Schedule. NZS 3910:2013 .3. but any amount payable to the Contractor thereunder shall be subject to any damages to which the Principal shall be entitled as a result of the Contractor’s breach. an 915670 165.1 In the event of the Principal: Failing to execute the Contract Agreement under 2.Ze ala n d * On completion of the Contract Works. or statutory manager as the case may be failing within 10 Working Days to make arrangements satisfactory to the Contractor for continued payment of amounts due under the Contract.4 shall apply.84.2.2. had the Contract Works been completed by the Contractor. any Plant. 14. py (d) Becoming bankrupt or going into liquidation or having a receiver or statutory manager appointed and the assignee. the difference between the two amounts shall be certified by the Engineer and paid by the Contractor to the Principal.1 or 14. Temporary Works.2. and surplus Materials of which the Principal has taken possession shall be handed back to the Contractor. the difference between the two amounts shall be paid by the Principal to the Contractor. had the Contract Works been completed by the Contractor. If the amount certified is less than the Cost to the Principal. or (f) Persistently. or wilfully neglecting to carry out its obligations under the Contract. liquidator.5 St 14.2. (c).5 da rd sN ew If the Principal elects to terminate the Contract under 14. If the Principal completes the Contract Works or arranges for them to be completed then 14.3 Default by the Principal 14. the Contractor may notify the Engineer of the default. receiver. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. (e) Abandoning the Contract. The Principal may thereupon expel the Contractor from the Site and may take all or any of the further steps in 14. and (d).3(b). The Engineer shall enquire into the Cost to the Principal of completing the Contract Works and certify accordingly.2 it shall give written notice to the Contractor of its election. The Contract shall thereupon be terminated.6 or the Principal’s Bond under 3. COPYRIGHT © Standards New Zealand 85 General conditions 14. and may claim damages for the Contractor’s breach of Contract.2. If the Special Conditions provide for liquidated damages for late completion and the completion of the Contract Works is delayed by reason of the Contractor’s breach and the termination of the Contract then the Contractor shall be liable for the liquidated damages calculated from the Due Date for Completion which would have applied if the Contract had not been terminated to the actual date of Practical Completion of the Contract Works.2 where required by the Contract.2. flagrantly.106. (c) 6 46 07 87 22 42 14 Obstructing the issue of any Payment Schedule or any certificate.4 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. If the amount certified exceeds the Cost to the Principal. 6 46 07 87 22 42 14 py rig ht St an 915670 165.3. Following such suspension the Contractor shall be entitled without prejudice to any other rights and remedies to terminate the Contract by giving notice in writing to the Principal. NZS 3910:2013 86 COPYRIGHT © Standards New Zealand .5. shall be under the same obligations to the Contractor in regard to payment as apply under 14.3 ew If the Principal’s default is not remedied within 10 Working Days after the giving of such notice under 14.106. 14. a certificate within the time provided in 12. the Contractor shall notify the Principal and the Engineer of the failure.84.2 or 12.3.7.4 da rd sN In the event of such termination the Principal.3.2 Ze ala n d * If the Engineer fails to provide a Payment Schedule within the periods provided in 12. General conditions Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.5.1 or 14. the Principal shall be deemed to be in default.3. the Contractor may require the Engineer to suspend the progress of the whole of the Contract Works under 6.2 applies. and its surety if 3.2 where the Contract has been frustrated and shall be liable to pay such other compensation.2. or.6 applies. if any. If the Payment Schedule is not provided within a further 5 Working Days after the notice. where 12.3. by way of damages as the Contractor may be entitled at law to recover.1. 14.5.6.14. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1 Ze ala n The Principal. shall take effect on the first Working Day after that day. NZS 3910:2013 .1.8 Any notice which has been served on a day other than a Working Day. or Engineer may require that any notice or other communication under the Contract be given in writing. 15.3. the sender shall retain evidence of the origin. Contractor.3.1. 15. or delivered to their address as stated in the Contract or as subsequently advised in writing.3. and time of sending each email or electronic communication. 15. or after 5 pm on a Working Day.5 an da Any notice under Sections 13 or 14 shall be served by being handed to the Person. or 14.6 Where any notice or other communication is given by email or other means of electronic communication. or delivered to their address as stated in the Contract or as subsequently agreed in writing. 15.2 Except as provided under 15. or the Engineer under the Contract shall be sufficiently served (in the absence of proof to the contrary) if it is: Handed to that Person.5 6 46 07 87 22 42 14 py Proof that a document has been sent by prepaid post in a correctly addressed envelope shall be prima facie evidence of delivery in the ordinary course of post.84. any document which is to be served on the Principal.3 915670 165.7 A copy of any notice by the Principal to the Contractor. 15. except: A notice under 13.1.1. COPYRIGHT © Standards New Zealand 87 General conditions 15 SERVICE OF NOTICES Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4 (a) St Every notice to the Principal shall be sufficiently given if it is given to the Engineer.1 General 15. or by the Contractor to the Principal shall at its time of issue also be delivered to the Engineer.1. in which case such service shall take effect on the day the notice is so handed or delivered. the Contractor.1.1. or rig ht (b) A notice (other than a payment claim) under the Construction Contracts Act.1. 15.4. destination.3.d * 15.106.1. or to their appointed representative. in which case such service shall take effect on the day the document is so handed or delivered. or to their appointed representative. 15. 13. or ew (a) rd sN (b) Sent by email or other means of electronic communication permitted by the Special Conditions to their address as stated in the Contract or as subsequently agreed in writing. in which case such service shall take effect at the time the email or communication is received at the address. rig ht M' = an da rd sN C 915670 165. A2 The amounts payable by the Principal to the Contractor under the Contract shall be adjusted up or down by amounts calculated in accordance with Equation 1: where = Cost fluctuation adjustment for the quarter under consideration V = Valuation of work shown as payable in any Payment Schedule in respect of work having been completed during the quarter under consideration subject to A3.106.1) ew 6 46 07 87 22 42 14 py For the purpose of calculating the Cost fluctuation adjustment. Inputs: Industry Group – Construction. but without deduction of retentions and excluding the Cost fluctuation adjustment L = Labour Cost Index. Appendices Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.APPENDIX A – COST FLUCTUATION ADJUSTMENT BY INDEXATION * A1 Ze ala n d The provisions of this Appendix shall apply unless otherwise specifically provided in the Special Conditions. any Daywork.5 A3 (Eq. COPYRIGHT © Standards New Zealand .84. Prime Cost Sums. Variations. published by Statistics New Zealand applying for the quarter under consideration St Index as defined under M but applying for the quarter during which tenders close. for the quarter under consideration L' = Index as defined under L but applying for the quarter during which tenders close M = Producers Price Index. NZS 3910:2013 A4 88 No other Cost fluctuation adjustment will be made by reason of any inaccuracy in the proportions of labour and Material Costs assumed in the above formula. Private Sector: Industry Group – Construction: All Salary and Wage Rates: published by Statistics New Zealand. and other payment items which are based on actual Cost or current prices and any advances shall be excluded from the Engineer’s valuation. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. NZS 3910:2013 . Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 6 46 07 87 22 42 14 py rig ht St an 915670 165. sN A8 da rd If at any time either of the indices referred to in A2 are no longer published by Statistics New Zealand. the adjustment shall thereafter be calculated by using such other index. or if the basis of either index is materially changed.84.5 COPYRIGHT © Standards New Zealand 89 Appendices Ze ala n d * The Contractor shall not be entitled to claim or have deducted any Cost fluctuation adjustment for any further changes in indices which occur after the Due Date for Completion of the Contract. as will fairly reflect the changes as previously measured by that index.A5 A6 The indices to be used in the calculation of fluctuation shall be those first published by Statistics New Zealand for the appropriate quarter. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or in such other manner. A7 ew Where indices for the quarter have not yet been published. interim payments will be made on the basis of the indices for the most recent quarter for which indices are available.106. 84.’ 6 46 07 87 22 42 14 py rig ht St an 915670 165. the Engineer. and members of the public may use the Site and Contract Works pursuant to their normal right of passage and.APPENDIX B – CONTRACTS IN PUBLIC PLACES AND ROAD CONTRACTS * B1 Interpretation B2 Engineer’s powers and responsibilities ew Ze ala n d Wherever the phrase ‘possession of the Site’ appears in the General Conditions or Special Conditions.5 da Subclause 10. subject to the other provisions of 6.106. ‘(b) Weather sufficiently inclement to interfere with the progress of the works beyond any allowance provided for in the Special Conditions. Except as provided in the Contract . Appendices Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.8. pursuant to the rights of access under this Contract. NZS 3910:2013 90 COPYRIGHT © Standards New Zealand .3.1(b) shall be deleted and the following substituted: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.8. the Principal. in the case of the Principal and Engineer.7.2 shall also be exercisable in the event of failure by the Contractor to comply with the provisions of the Contract in relation to traffic control or safety requirements. it shall mean only the non-exclusive right of occupancy of the Site. Time for completion rd B3 sN The Engineer’s power on behalf of the Principal to take action under 6. Running of traffic will not be deemed to be occupancy by the Principal under 10. The rights of access by the public shall be subject only to such reasonable restriction made necessary by the conduct of the Contract Works from time to time. St (b) Measure and value contract governed by 2. contracts in public places.3 Is this Contract a contract in a public place to which (yes or no) B1 and B2 of Appendix B apply? COPYRIGHT © Standards New Zealand 91 .2. NZS 3910:2013 (yes or no) Local authority contracts. 2. (b). or (c)) (a) Lump sum contract governed by 2.4. the Separable Portions are as follows and as further defined in the Contract: THE CONTRACT da 2.106. 10.2 Schedules 1.1 (%) (%) Indicative estimates of the Contract Price: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4 Allowance(s) which are to be added to Net Cost in a cost reimbursement contract or for parts of the Contract Works which are required to be carried out on a cost reimbursement basis: 6 46 07 87 22 (If percentages are shown as zero or nil. (yes or no) (reference) (select one to apply (a). Type of contract 2.2 The Principal is: of: (street address) Separable Portions • Are there any Separable Portions in this Contract? If yes.1 This Contract is a: an 915670 165.84. and road contracts Is this Contract a local authority contract to which (yes or no) 2.1 rd • sN 1.SCHEDULES TO GENERAL CONDITIONS OF CONTRACT Ze ala n d * Schedule 1 – Special Conditions of Contract – Specific Conditions of Contract Contract for: Clause Title and subject matter Specific condition data in General Conditions (Expand cells if required or add a reference to further detail provided in Schedule 2.5 2.5 2.4 Allowance for On-site Overheads: py • 42 14 Allowance for Off-site Overheads and Profit: Are indicative estimates required? 2.2.4. (c) Cost reimbursement contract governed by 2.) INTERPRETATION Definitions ew 1.1.) • 2.4. allowances for overheads and profit are deemed to be included in Net Cost.5.1 Cost reimbursement contract rig ht 2.2 applies? 2.5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.5.3. 1 ($) 42 14 The surety for the Principal’s Bond shall be: GENERAL OBLIGATIONS py 5. (b) In accordance with the following other requirements: 2.1.2.1 Documents prepared by the Engineer or Principal Copies of the Contract shall be supplied without form: 2.2 If yes: • • rig ht 3.4 * (Expand cells if required or add a reference to further detail provided in Schedule 2.2 If yes.6 2. sN charge to the Contractor in the following electronic ew 2. (a) or (b)) (a) As stated in 2.2 Ze ala n applies? (number of Working Days) Evidence of Contract How is the Contract Agreement to be executed? (select one to apply. Schedulessubscribed to may be held in printed form at any one time.4. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 (select one to apply.6. d Clause in General Conditions Possession of the Site The Contractor shall be given possession of the Site Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.8. (a) or (b)) (a) 10 Working Days after the Date of Acceptance of Tender: (b) On the following date: 5.106.) Is this Contract a road contract to which Appendix B (yes or no) If yes. the amount of the Contractor’s Bond shall be: ($) St 3.2 Documents prepared by the Contractor Copies of documents referred to in 2.7 Is a Contractor’s Bond required? (yes or no) 3.4 5.3 Limits on the Contractor's right of entry to adjoining properties are: 92 COPYRIGHT © Standards New Zealand .6.2 shall be Number of hard copy sets: • In the following electronic form: da • 915670 165.8 2.1 rd supplied without charge to the Engineer: 3.4.7.Title and subject matter Specific condition data 2.8. the allowance under B3 shall be: 2.2.5 BONDS Contractor’s Bond an 3.2 Principal’s Bond Is a Principal’s Bond required? 3.84.1 (yes or no) The amount of the Principal’s Bond shall be: 6 46 07 87 22 5.1.5.2.1 3. 11.6 Compliance with laws 915670 165.4(e) If yes.6 Care of the works and Site 5.20. other requirements for the Comprehensive 5.18 rig ht by the Contractor? Is a quality plan required to be prepared by the Contractor? 5.1(a) Are as-built drawings required to be prepared by the (yes or no) Contractor? 5.106.17 Safety plan St notices and obtain other licences under 5.5 da 5.20.84.11.10.11.3 are: 5.11 Exceptions to the Principal’s obligations to obtain an licences under 5.5 Exceptions to the Contractor's obligation to give 5.6.20 As-built drawings and operation and maintenance manuals Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3 (yes or no) ew 5. NZS 3910:2013 5.4 Is the programme required to be a Comprehensive Programme? 5.10.10 Schedules 5.) * in General Conditions Separate Contractors Ze ala n Separate Contractors who may be carrying out work on the Site concurrently with the Contract Works are: 5.5 sN Programme are: The Comprehensive Programme shall use the following software: 5.1(b) Are operation and maintenance manuals required to (yes or no) be prepared by the Contractor? COPYRIGHT © Standards New Zealand 93 .5. details of facilities required are: 5.1 d 5.5.10.19 (yes or no) Quality plan (yes or no) 6 46 07 87 22 42 14 Traffic management plan py Is a traffic management plan required to be prepared (yes or no) by the Contractor? 5.4 are: Is a Site-specific safety plan required to be prepared 5.Clause Title and subject matter Specific condition data (Expand cells if required or add a reference to further detail provided in Schedule 2.10.2 Are facilities for Separate Contractors required? (yes or no) If yes.4 rd Updates of the Comprehensive Programme shall be provided at the following intervals: 5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.11.6(g) Further risks specifically excepted are: Programme 5. 3.1.1.1.1 above)) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 INSURANCES General The party identified below shall arrange the following ew insurances referred to in the following clauses: 8.8 (yes or no) (yes or no) St (d) Tornado: (yes or no) Construction insurance (These items are required to be completed whether the Contractor or the Principal is the insuring party (see 8.3 or 8.5.2. (Expand cells if required or add a reference to further detail provided in Schedule 2. 8.2 * THE ENGINEER d 6. Schedulessubscribed to may be held in printed form at any one time.6 rd 8.6 Professional indemnity (select Contractor if insurance is required) The following forces of nature shall be specifically da insured under 8.1 8.1 6.84.3 or 8.8 Construction (select Contractor or Principal) 8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 8.106.4 Plant sN (select Contractor if insurance is required) 8. 8.5 (a) Landslip: an (b) Earthquake: (c) Tsunami: (e) Cyclone: (f) Storm: (yes or no) (yes or no) (yes or no) rig ht (g) Flood: (yes or no) (h) Lightning strike: (i) Volcanic activity: (yes or no) 6 46 07 87 22 42 14 (yes or no) (j) Hydrothermal activity: (yes or no) (k) Geothermal activity: (yes or no) py 8.5 or 8.8 Existing structure(s) and contents (select Principal if insurance is required) 8.Title and subject matter Specific condition data 6.9 Public liability (select Contractor or Principal) 8.) Appointment of Engineer Ze ala n Clause in General Conditions The Engineer is: whose professional qualification is: 8. 8.2 Motor vehicle liability (select Contractor if insurance is required) 8.8 as applicable: 915670 165.8 The following shall have their respective interests noted in the construction insurance policy: 94 COPYRIGHT © Standards New Zealand .3. equal to: 915670 165.3. equal to: ($) (ii) The percentage in the right hand column of the Contract Price adjusted as above: (b) An allowance for professional fees including the (%) (select one to apply.106. (i) or (ii)) sN Cost of clerks of works and inspectors. stated in the right hand 07 87 22 42 14 column: py (e) An allowance for increased construction Costs (select one to apply.3.) * in General Conditions d Where construction insurance is required (see 8. stated in the right hand column: COPYRIGHT © Standards New Zealand 95 Schedules 8. the amount of insurance to be effected for the Contract Works and Materials shall be for not less than the sum of the Contract Price.Clause Title and subject matter Specific condition data (Expand cells if required or add a reference to further detail provided in Schedule 2. 8. plus the following allowances: (a) An allowance for the Cost of demolition. (i) or (ii)) rig ht due to Variations equal to: (i) The amount in the right hand column: ($) (ii) The percentage of the Contract Price (%) 6 46 adjusted as above.8 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. (i) or (ii)) da Contract Works. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 .5 an (i) The amount in the right hand column (ii) The percentage of the Contract Price ($) (%) column: St adjusted as above. disposal (select one to apply. stated in the right hand (d) An allowance for an increase in the Contract Price (select one to apply.1 Ze ala n above). (i) or (ii)) and preparation for replacement work. the Cost of which is not included in the Contract Price. after the acceptance of the tender or other offer. (i) or (ii)) due to inflation equal to: (i) The amount in the right hand column: ($) (ii) The percentage of the Contract Price (%) adjusted as above. equal to: ew (i) The amount in the right hand column: (i) The amount in the right hand column: ($) (ii) The percentage in the right hand column of (%) rd the Contract Price adjusted as above: (c) An allowance for items to be incorporated in the (select one to apply.84. and (c) are: 96 COPYRIGHT © Standards New Zealand .6 8.) (select one to apply. (b). motor vehicle third ($) ($) da 8.4 (Expand cells if required or add a reference to further detail provided in Schedule 2.7.Title and subject matter Specific condition data * Contractor arranged Plant insurance Where Plant is required to be insured (see 8.2.1 and 8.2 St be effected for an amount not less than: Sub-limits of liability for design of parts of the Contract Works by Subcontractors shall be not be 6 46 07 87 22 42 14 less than: Principal arranged construction insurance (refer also to 8. conditions.1 above): d 8.1 amount not less than: Contractor arranged professional indemnity insurance an 915670 165. warranties or endorsements to the policy for 8. public liability insurance shall be effected by the Contractor for an amount not less than: ($) ew 8.1 above).106. the insurance policy wording title for 8. (a) or (b)) (a) The Contractor shall insure the following items of Plant on the Site for the amounts stated: (b) The Contractor shall insure each item of Plant on than: Contractor arranged public liability insurance Where required (see 8.5 Ze ala n Clause in General Conditions • sN Such public liability insurance may include sub-limits: For liability arising out of vibration.8.8.8 (list specific part(s) of Contract Works and applicable $ sub-limits for any one claim and for an amount in the aggregate. or state if not required) In accordance with 8.7.6. the extraordinary exclusions. and (c) is: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. weakening or removal of support.1 above).2 (a).2 (a).5 Where required (see 8. (b).1 and 8. Schedulessubscribed to may be held in printed form at any one time. professional indemnity insurance for design by the Contractor shall • For any one claim: ($) • And for an amount in the aggregate of: ($) rig ht 8.6.2.8.1 (list specific items) ($) the Site having a current market value of more 8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 In accordance with 8.3) py 8. of not less than: For liability under the Forest and Rural Fires Act rd • 1977.2 ($) party liability insurance shall be effected for an 8. of not less than: Where required (see 8.8.1 above).5.5.84. 106.5 • St 8.1 above): The lead insurer is: Address of lead insurer: The Nominal Deductibles are: 8.2(a) • For damage arising out of the Contract Works: • For other claims: • For natural perils: The replacement value to be insured is: • The lead insurer is: • Address of lead insurer: The Nominal Deductibles are: • For other claims: • For natural perils: da rd For damage arising out of the Contract Works: Other structures in the vicinity are: • The replacement value to be insured is: • The lead insurer is: • Address of lead insurer: ($) an 915670 165. NZS 3910:2013 • For damage arising out of the Contract Works: • For other claims: • For natural perils: COPYRIGHT © Standards New Zealand 97 .) * in General Conditions d Where the Principal is required to effect construction Ze ala n insurance (see 8.1 The Nominal Deductibles are: • For other claims: • For natural perils: rig ht For damage arising out of the Contract Works: Contents insurance: 6 46 07 87 22 42 14 • The replacement value to be insured is: • The lead insurer is: ($) py 8.8.8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.8.8.Clause Title and subject matter Specific condition data (Expand cells if required or add a reference to further detail provided in Schedule 2.2(c) • • Address of lead insurer: The Nominal Deductibles are: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2(b) ($) sN • ew The existing structures are: Schedules 8.84. 10 is: 98 COPYRIGHT © Standards New Zealand .1 above).2 for: (specify as applicable or state ‘not applicable’) • Liability arising out of vibration.10 For Off-site Overheads and Profit: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2: • the policy wording title is: ew • extraordinary exclusions.106. (iii). (b) The prices and rates in the Schedule of Prices are (select one to apply. (ii). or (iv)) rig ht exclusive of On-site Overheads and the allowance for On-site Overheads to be added in accordance with 9. (b) The prices and rates in the Schedule of Prices are (select one to apply.9 (Expand cells if required or add a reference to further detail provided in Schedule 2. warranties.7. (iii) As nominated in the Contractor’s tender. (i). or (iv)) exclusive of Off-site Overheads and Profit and the allowance for Off-site Overheads and Profit to be added in accordance with 9. 9.3 9.3. (i). 9.9.9 VARIATIONS Valuation of Variations an 915670 165. Schedulessubscribed to may be held in printed form at any one time.1 * Principal’s option to insure public liability Where required (see 8.9. weakening or Liability under the Forest and Rural Fires Act 1977: 9.3. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 (select one to apply. (a) or (b)) (a) The prices and rates in the Schedule of Prices are inclusive of full allowance for Off-site Overheads and Profit. conditions. (iii).84.9 is: 6 46 07 87 22 42 14 (i) Agreed percentage: (%) py (ii) As nominated in the Schedule of Prices.3. (iv) A reasonable percentage.Title and subject matter Specific condition data 8. or endorsements to the policy are: Such public liability insurance may include sub-limits sN 8.5 ($) ($) da • rd removal of support: For On-site Overheads: (select one to apply.3. (ii). the Principal shall d 8.) ($) Ze ala n Clause in General Conditions effect public liability insurance for an amount not less than: The lead insurer is: Address of lead insurer: The Nominal Deductible is: In accordance with 8. (a) or (b)) St (a) The prices and rates in the Schedule of Prices are inclusive of full allowance for On-site Overheads. 1 Damages for late completion Liquidated damages shall be applied as follows: • In respect of the Contract Works: ($ per Working Day) • In respect of any Separable Portion(s): ($ per Working Day for each Separable Portion) COPYRIGHT © Standards New Zealand 99 . the percentage to be (b) As nominated in the Schedule of Prices.4 (Select one to apply. 10. The periods to be used for calculating the Due Date rig ht for Completion are: (a) For the Contract Works: (b) For any Separable Portions: 10.5.4. or (d)) compensation for time-related On-site Overheads and Off-site Overheads and Profit in relation to an extension of time to be applied in accordance with ew 9. (d) The reasonable Cost of processing Variations.10 (cont.3.84. (c) As nominated in the Contractor’s tender. (b).2 Due Date for Completion 10. the Working Day rate in (select one to apply.15 is: 915670 165.5 (Working Days) 6 46 07 87 22 42 14 (Working Days) Practical Completion Certificate Prior to issue of the Practical Completion Certificate: py 10.2. 9.) * in General Conditions (i) Agreed percentage: (iii) As nominated in the Contractor’s tender.11 (%) Ze ala n (ii) As nominated in the Schedule of Prices.15 paid in accordance with 9. (b). Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3.3.) ($) sN (b) As nominated in the Schedule of Prices.5 (%) da (a) Agreed percentage: (select one to apply.3.106. (c). Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. (a).5 10. (iv) A reasonable percentage. For time-related Cost. (d) Reasonable compensation. (a). or (c)) (a) Producer Statements in the form of Schedule 6 are required. d 9. or (d)) rd For processing of Variations. (c). (b).11 is: (a) Agreed rate per Working Day: Schedules 9. an (c) As nominated in the Contractor’s tender.3. (a).Clause Title and subject matter Specific condition data (Expand cells if required or add a reference to further detail provided in Schedule 2. TIME FOR COMPLETION 10. NZS 3910:2013 (b) Producer Statements as set out in the following parts of the Contract are required: (state reference) (c) Producer Statements are not required.1 St 10. 5 (state reference) (c) Producer Statements are not required.2 • For any Separable Portions: Final Completion Certificate sN 11. (a). (a) or (b)) St (a) No warranties are required.106.6.5.1.6 (Expand cells if required or add a reference to further detail provided in Schedule 2.84. (a) or (b)) (a) Advances for Materials delivered to the Site but which have yet to be incorporated in the Contract Works shall not be made.1 11.1 * Bonus for early completion Is a bonus to be payable? (yes or no) • If yes.1 (select one to apply.6 11. Warranties an 915670 165. 6 46 07 87 22 42 14 (b) The Contractor shall provide guarantees in the (state form) py following form: 12. bonuses for any Separable Portions are: ($ per Working Day) Ze ala n 10. (b) Producer Statements as set out in the following 11. (b).6.5 da parts of the Contract are required: 11.Title and subject matter Specific condition data 10. 11. or (c)) (a) Producer Statements in the form of Schedule 6 rd are required.3 For the Contract Works: ew (3 Months unless otherwise stated) • d Clause in General Conditions Prior to issue of the Final Completion Certificate: (select one to apply.1. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 12.3.) DEFECTS LIABILITY Defects Notification Period The Defects Notification Period shall be: 11. Schedulessubscribed to may be held in printed form at any one time. (b) The Contractor shall provide warranties as set out in the Contract for the following items of work: Guarantees rig ht 11. the bonus for the Contract Works is: ($ per Working Day) • If yes.1 PAYMENTS Contractor’s payment claims Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. subject to the following conditions: 100 COPYRIGHT © Standards New Zealand . 12. (a) or (b)) (a) No guarantees are required. (b) Advances for Materials delivered to the Site but which have yet to be incorporated in the Contract (state any conditions) Works shall be made.6.3(b) (iii) Advances for Materials delivered to the Site (select one to apply. 11.2 (state the items) (select one to apply. 000.Clause Title and subject matter Specific condition data (Expand cells if required or add a reference to further detail provided in Schedule 2.3 (state any conditions) payment and the limit of the total sums retained shall be in accordance with the following: • 10% on the first $200. 6 46 07 87 22 42 14 (b) The Contractor may not provide a bond in lieu of 12.000.000. (a).3(b) (iv) Ze ala n 12. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1. or (c)) (a) Cost fluctuations shall not be paid. (b). and • 5% on the next $800. NZS 3910:2013 . subject to the following conditions: Retention monies 12.75% on amounts in excess of da 915670 165. and With a defects liability retention of half St • the total retention. Cost fluctuations (select one to apply. subject to the following conditions: Advances for Materials not yet on Site (select one to apply.3. 12.1.3. (a) or (b)) (a) The Contractor may provide a bond in lieu of retentions.2 (state any conditions) (select one to apply.106.8 py retentions.000.5 rd (a) For the Contract Works. (a) or (b)) (a) Advances for Temporary Works or Plant shall not be made. a total retention of: • an $1.3(b) (iv) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. (b) Advances for Temporary Works or Plant shall be made.) * in General Conditions Advances for Temporary Works or Plant d (select one to apply. (c) Cost fluctuations shall be paid in accordance with the method described in: COPYRIGHT © Standards New Zealand (reference) 101 Schedules 12. (a) or (b)) sN The percentage to be retained from each progress ew made. (b) Cost fluctuations shall be paid in accordance with Appendix A. (a) or (b)) (a) Advances for Materials not on Site shall not be (b) Advances for Materials not yet on Site shall be made.84. (b) The retention scale in the right hand column: Bond in lieu of retention rig ht 12.3.1.000. 12. and With a maximum total retention when aggregated of $200. and • 1.3 (select one to apply. (a) or (b)) (a) Shall not be in the form of a tax invoice.) Payment Schedules provided by the Engineer: (select one to apply.2 * Goods and services tax d 12.84.4 Arbitration 13. DISPUTES 13.3 If required.106.13 (Expand cells if required or add a reference to further detail provided in Schedule 2.1.13. Ze ala n Clause in General Conditions SERVICE OF NOTICES For the purpose of service of written notice: rd (a) The address of the Principal is: Delivery address: Mark for the attention of: 915670 165. Schedulessubscribed to may be held in printed form at any one time. 15. (b) Shall be in the form of a buyer created tax invoice and the parties agree not to issue any other tax invoice for items covered by the Payment 13.4. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 Delivery address: Mark for the attention of: Email address: Other agreed means of electronic communication and address detail: 102 COPYRIGHT © Standards New Zealand .2 sN following Person: ew Schedule.5 an Email address: da Postal address: Other agreed means of electronic communication and address detail: St (b) The address of the Contractor is: Postal address: rig ht Delivery address: Mark for the attention of: Email address: 6 46 07 87 22 42 14 Other agreed means of electronic communication py and address detail: (c) The address of the Engineer is: Postal address: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. the arbitrator shall be nominated by the 15.Title and subject matter Specific condition data 12. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.py Co rig ht 915670 165. NZS 3910:2013 Schedule 2 – Special Conditions of Contract – Other Conditions of Contract 14 22 42 87 07 46 6 103 .5 d Ze ala n COPYRIGHT © Standards New Zealand * (Include here other Special Conditions that modify the General Conditions.106.84.) Schedules ew sN rd da an St *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. The Contract requires the Contractor to provide the Principal with security in the form of a bond to ensure performance of the Contractor’s obligations under the Contract.5 BY THIS DEED: THE Contractor and surety are jointly and severally held and bound to the Principal in the sum of St 1.106.84. 104 py (b) The surety receives a notice from the Principal releasing the Contractor and surety from this bond. or The surety receives a notice from the Principal confirming that a replacement Contractor’s Bond has been received and accepted and releasing the Contractor and surety from this bond. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 EXCEPT as provided in clause 2 above this bond shall be and remain in full force and effect. da B an 915670 165. 2. Schedulessubscribed to may be held in printed form at any one time.* Schedule 3 – Form of Contractor’s performance bond d Contract for Ze ala n THIS DEED is made on BY of (‘the Contractor’) AND of (Address of surety for service) IT IS MADE IN THE FOLLOWING CIRCUMSTANCES: The Contractor has entered into an agreement with sN A ew (‘the surety’) (‘the Principal’) rd of to carry out and fulfil the obligations imposed on the Contractor (‘the Contract’). COPYRIGHT © Standards New Zealand . THE conditions of this bond are that it shall be released if and when: (a) 6 46 A Practical Completion Certificate has been issued for the Contract Works in accordance with 10. rig ht $NZ and bind themselves. their successors and assigns jointly and severally for the payment of that sum. 07 87 22 42 14 (c) 3. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. C Words and phrases with capital initial letters that are not otherwise defined in this bond shall have the meaning set out in the Contract.4 of the General Conditions. it is sufficient if the bond is signed under the name of the company by 6 46 07 87 22 42 14 that director. Any of these parties which are a company shall execute the bond by having it signed.5 an Director rig ht St Director NOTE – This bond shall be executed by the Contractor and by the surety in the manner required for execution of a deed. delivered. Director da rd Director SIGNED on behalf of the Contractor by: 915670 165.84.106. by two or more directors. or Ze ala n (c) d (b) By any alteration in the extent or nature of the Contract Works to be completed. THE surety shall not be released from any liability under this bond: By any alteration in the terms of the Contract. Alternatively. * (a) By any allowance of time by the Principal or by the Engineer appointed by the Principal under the Contract. Any party which is a body py corporate (other than a company) shall execute in the same manner as a company by persons in a comparable position to a company director or otherwise in accordance with section 9 of the Property Law Act 2007. NZS 3910:2013 COPYRIGHT © Standards New Zealand 105 . companies may execute under power of attorney. the party shall sign and the signature shall be witnessed by another person. but the signature shall be witnessed by another person. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.4. If there is only one director. and having defects remedied. (d) By any forbearance or waiver by the Principal or by the Engineer in respect of any of the Contractor’s obligations or in respect of any default on the part of the Contractor. sN SIGNED on behalf of the surety by: Schedules ew 5. In the case of a party who is an individual. The witness shall not only sign but shall also add his or her occupation and address. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. under the name of the company. In witness of which this deed has been executed. THIS bond shall be governed by New Zealand law. The witness shall not only sign but shall also add his or her occupation and address. 106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 3.5 Words and phrases with capital initial letters that are not otherwise defined in this bond shall have the meaning set out in the Contract.* Schedule 4 – Form of Principal’s bond d Contract for Ze ala n THIS DEED is made on BY of (‘the Principal’) AND of (Address of surety for service) ew The Principal has entered into an agreement with sN IT IS MADE IN THE FOLLOWING CIRCUMSTANCES A (‘the surety’) The Contract requires the Principal to provide the Contractor with security in the form of a bond to ensure performance of the Principal’s obligations under the Contract.84. their successors and assigns jointly and severally for the payment of that sum. 2. 915670 165. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. St BY THIS DEED THE Principal and surety are jointly and severally held and bound to the Contractor in the sum of rig ht $NZ and bind themselves. an C 1. or py (a) 6 46 07 87 22 42 14 (b) The surety receives a notice from the Contractor releasing the Principal and the surety from this bond. da B rd of (‘the Contractor’) by which the Contractor has agreed to carry out and fulfil the obligations imposed on the Contractor (‘the Contract’). 106 COPYRIGHT © Standards New Zealand . THE conditions of this bond are that it shall be released if and when: The Principal has paid to the Contractor the Contract Price and any other monies payable to the Contractor under the Contract. EXCEPT as provided in clause 2 above this bond shall be and remain in full force and effect. Schedulessubscribed to may be held in printed form at any one time. 84. delivered. Any party which is a body corporate (other than a company) shall execute in the same manner as a company by persons in a comparable position to a company director or py otherwise in accordance with section 9 of The Property Law Act 2007. by two or more directors. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. * (a) By any allowance of time by the Contractor. THE surety shall not be released from any liability under this bond: By any alteration in the terms of the Contract. companies may execute under power of attorney.106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. In the case of a party who is an individual. it is sufficient if the bond is signed under the name of the company by that director. Any of these parties which are a company shall execute by having it signed.4. the party shall sign and the signature shall be witnessed by another person. Alternatively. If there is only one director. under the name of the company. 5. The witness shall not only sign but shall also add his or her occupation 6 46 07 87 22 42 14 and address. or Ze ala n (c) d (b) By any alteration in the extent or nature of the Contract Works to be completed.5 da SIGNED on behalf of the Principal by: rd Director Director Schedules ew In witness of which this deed has been executed St Director rig ht NOTE – This bond shall be executed by the Principal and by the surety in the manner required for execution of a deed. and having defects remedied. NZS 3910:2013 COPYRIGHT © Standards New Zealand 107 . SIGNED on behalf of the surety by: sN Director an 915670 165. The witness shall not only sign but shall also add his or her occupation and address. THIS bond shall be governed by New Zealand law. (d) By any forbearance or waiver by the Contractor in respect of any of the Principal’s obligations or in respect of any default on the part of the Principal. but the signature shall be witnessed by another person. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.106. EXCEPT as provided in clause 2 above this bond shall be and remain in full force and effect.3 of the General Conditions. da B an 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 108 COPYRIGHT © Standards New Zealand . C Words and phrases with capital initial letters that are not otherwise defined in this bond shall have the meaning set out in the Contract. 2.* Schedule 5 – Form of Contractor’s bond in lieu of retentions d Contract for Ze ala n THIS DEED is made on BY of (‘the Contractor’) AND of (Address of surety for service) IT IS MADE IN THE FOLLOWING CIRCUMSTANCES The Contractor has entered into an agreement with sN A ew (‘the surety’) (‘the Principal’) rd of to carry out and fulfil the obligations imposed on the Contractor (‘the Contract’). THE conditions of this bond are that it shall be released if and when: (a) The Final Completion Certificate has been issued for the Contract Works in accordance with 11.5 BY THIS DEED THE Contractor and surety are jointly and severally held and bound to the Principal in the sum of St 1. rig ht $NZ and bind themselves. their successors and assigns jointly and severally for the payment of that sum. or 6 46 07 87 22 42 14 py (b) The surety receives a notice from the Principal releasing the Contractor and the surety from this bond.84. 3. The Contractor has agreed to provide the Principal with security in the form of a bond in lieu of r etentions additional to any other bond required under the Contract. Schedulessubscribed to may be held in printed form at any one time. 5 an Director rig ht St Director NOTE – This bond shall be executed by the Contractor and by the surety in the manner required for execution of a deed. and having defects remedied. delivered. or Ze ala n (c) d (b) By any alteration in the extent or nature of the Contract Works to be completed. Director da rd Director SIGNED on behalf of the Contractor by: 915670 165. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Alternatively. NZS 3910:2013 COPYRIGHT © Standards New Zealand 109 .84. THIS bond shall be governed by New Zealand law. The witness shall not only sign but shall also add his or her occupation and address. If there is only one director. it is sufficient if the bond is signed under the name of the company by 6 46 07 87 22 42 14 that director. The witness shall not only sign but shall also add his or her occupation and address. In the case of a party who is an individual. under the name of the company.4. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. In witness of which this deed has been executed sN SIGNED on behalf of the surety by: Schedules ew 5. THE surety shall not be released from any liability under this bond: By any alteration in the terms of the Contract. the party shall sign and the signature shall be witnessed by another person. Any party which is a body py corporate (other than a company) shall execute in the same manner as a company by persons in a comparable position to a company director or otherwise in accordance with section 9 of the Property Law Act 2007. but the signature shall be witnessed by another person. companies may execute under power of attorney. by two or more directors.106. Any of these parties which are a company shall execute the bond by having it signed. (d) By any forbearance or waiver by the Principal or by the Engineer in respect of any of the Contractor’s obligations or in respect of any default on the part of the Contractor. * (a) By any allowance of time by the Principal or by the Engineer appointed by the Principal under the Contract. * Schedule 6 – Form of Producer Statement – Construction ISSUED BY d (Contractor) IN RESPECT OF (Principal) (Description of Contract Works) AT Ze ala n TO (Contractor) has contracted to (Address) (Principal) ew to carry out and complete certain building works in accordance with a Contract titled (Project) sN I a duly authorised representative of All (Contractor) (Contractor) Part only as specified in the attached particulars of the contract works in accordance with the Contract da (Duly Authorised Agent) rd believe on reasonable grounds that has carried out and completed: (‘the Contract’) 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 110 COPYRIGHT © Standards New Zealand .106.5 an St Date rig ht (Signature of Authorised Agent on behalf of) (Contractor) (Address) py 6 46 07 87 22 42 14 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.84. Schedulessubscribed to may be held in printed form at any one time. NZS 3910:2013 (d) An allowance for an increase in construction costs $ (e) $ An allowance for increased reconstruction costs COPYRIGHT © Standards New Zealand TOTAL SUM INSURED $ 111 .5 an The following forces of nature are insured: landslip 8. have been applied to this policy flood (Project title) ew In respect of 8.1.6 (Branch) Schedules Ze ala n (Name of insurance company) The sums insured are (GST exclusive): Contract Price 6 46 07 87 22 42 14 $ Costs of demolition $ py (a) (b) Professional fees $ (c) $ Value of items to be incorporated Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. copy attached. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3 tsunami cyclone storm lightning strike volcanic activity geothermal activity rig ht hydrothermal activity earthquake St tornado Yes/No da We advise that special terms.* Schedule 7 – Information on Contractor arranged construction insurance d To whom it may concern: From We confirm having effected construction insurance for: (Address) (The Contractor) (The Principal) Policy wording title is Annual run-off policy Annual cut-off policy rd Project specific policy sN The following provisions apply: 915670 165.3.106.84. 1 Transit (in New Zealand) 8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 SIGNED BY SIGNATORY TITLE (Clause numbers refer to NZS 3910:2013 and are for information only. We do not warrant that this policy complies with the requirements of NZS 3910:2013. 6 46 07 87 22 42 14 Insurance Company Stamp (Or name of insurance broking company confirming cover) Date Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3. Schedulessubscribed to may be held in printed form at any one time.106.3 Reinstatement provision on building and contents 8.2.The policy deductibles are (GST inclusive): % of minimum of $ $ Ze ala n Other (name) 8.) 112 COPYRIGHT © Standards New Zealand .2 ew Policy cover terms included are: Yes/No rd 8.5 d Natural disaster * Non-earthquake $ rig ht We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances.4 Void ab initio for non-payment of premium without prior notification 8.1 da Policy extensions included are: $ Materials in storage (in New Zealand) Yes/No $ Testing and commissioning Yes/No $ Expediting expenses Yes/No $ Overseas airfreight Yes/No $ an St Yes/No Sub-limit (if applicable) Yes/No 915670 165.3 Severally insured No settlement delay due to exercise of subrogation Yes/No Yes/No Yes/No sN 8.3(a) Construction period from Insurance maintenance period Policy expiry date to Discretionary cancellation clause 8. py This insurance issued is subject to the terms and conditions of the policy.2.2.2.84.3.2. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84. NZS 3910:2013 .5 an The sums insured are (GST exclusive): All items of Plant Sum insured St OR Yes/No rd The following provisions apply: (Project title) sN We advise that special terms.* Schedule 8 – Information on Contractor arranged Plant insurance d To whom it may concern: From We confirm having effected Plant insurance for: ew Policy wording title is Annual policy Project specific policy da Policy expiry date 915670 165. have been applied to this policy (Address) (The Contractor) In respect of 8.106. This insurance issued is subject to the terms and conditions of the policy.4 Void ab initio for non-payment of premium without prior notification Yes/No py 8.2.3(a) Reinstatement provision No settlement delay due to exercise of subrogation Yes/No We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances.2.2 Discretionary cancellation clause Yes/No 6 46 07 87 22 42 14 Yes/No 8. We do not warrant that this policy complies with the requirements of NZS 3910:2013.2.4 (Branch) $ Valued schedule of construction Plant insured (copy attached) rig ht The policy deductible (GST inclusive) is: $ Policy cover terms included are: 8. COPYRIGHT © Standards New Zealand 113 Schedules Ze ala n (Name of insurance company) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. copy attached. Schedulessubscribed to may be held in printed form at any one time.5 114 ew sN rd da an St Insurance Company Stamp (Or name of insurance broking company confirming cover) SIGNED BY SIGNATORY TITLE (Clause numbers refer to NZS 3910:2013 and are for information only.106.py Co rig ht 915670 165.84.) Ze ala n d *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents Date * NZS 3910:2013 14 22 42 87 07 46 6 COPYRIGHT © Standards New Zealand . have been specifically applied to this project (The Contractor) an 915670 165.* Schedule 9 – Information on public liability insurance d To whom it may concern: From Ze ala n (Name of insurance company) (Branch) (Address) sN In respect of Policy wording title is Annual policy Project specific policy (Project title) Yes/No da The following provisions apply: (The Principal) rd We advise that special terms.84. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. removal.9 The limit of indemnity (GST exclusive) Sub-limit insured for (GST exclusive) rig ht Vibration. 8.5 Policy expiry date St 8. loss or injury caused by an act or omission of the Contractor arising out of the performance of the Contract Works. removal. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or weakening of support Forest and Rural Fires Act 1977 $ $ 6 46 07 87 $ 22 42 14 $ Deductible (GST inclusive) is $ Deductible for vibration.106. NZS 3910:2013 . copy attached.5. or weakening of support (GST inclusive) Deductible for underground services (GST inclusive) py Underground services COPYRIGHT © Standards New Zealand $ $ 115 Schedules ew We confirm having effected public liability insurance to indemnify the Principal and the Contractor against legal liability to third parties for damage. da This insurance issued is subject to the terms and conditions of the policy. Schedulessubscribed to may be held in printed form at any one time.2.106.7 Reinstatement provisions Number of reinstatements Discretionary cancellation clause ew Policy cover terms included are: sN Void ab intio for non-payment of premium without prior notification Severally insured No settlement delay due to exercise of subrogation Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No rd We undertake that this policy will not be cancelled or amended by us without written advice to the insured party which has arranged the insurances. an 915670 165.5 Date SIGNED BY rig ht St Insurance Company Stamp (Or name of insurance broking company confirming cover) SIGNATORY TITLE 6 46 07 87 22 42 14 py (Clause numbers refer to NZS 3910:2013 and are for information only. 8.84.The policy also covers liability arising out of: The ownership/use of Plant not required to be registered for road use The use of hired Plant The ownership/use of watercraft over 8 m The ownership/use of aircraft The use of explosives Yes/No * Ze ala n d Yes/No 8. We do not warrant that this policy complies with the requirements of NZS 3910:2013.) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 116 COPYRIGHT © Standards New Zealand . copy attached. We do not warrant that this policy complies with the requirements of NZS 3910:2013.2 an The limits of liability are (GST exclusive): da Annual policy rd The following provisions apply: Section 2 – Liability For any one occurrence arising out of the same event St The policy deductibles are: Section 2 – Liability (GST inclusive) Plus under age penalties rig ht 8. This insurance issued is subject to the terms and conditions of the policy. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. COPYRIGHT © Standards New Zealand 117 Schedules Ze ala n (Name of insurance company) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.106. have been applied to this policy (Project title) $ $ 6 46 07 87 22 42 14 Policy cover terms included are: Section 2 Liability automatic reinstatement Yes/No Discretionary cancellation clause Yes/No py Void ab initio for non-payment of premium without prior notification Yes/No Yes/No No settlement delay due to exercise of subrogation We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances.84.5 8.5.2 Yes/No sN We advise that special terms. NZS 3910:2013 .* Schedule 10 – Information on Contractor arranged motor vehicle insurance d To whom it may concern: From We confirm having effected motor fleet insurance for (Branch) (Address) (The Contractor) ew In respect of Policy wording title is Project specific policy Policy expiry date 915670 165. py Co rig ht 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents Date * NZS 3910:2013 14 22 42 87 07 46 6 COPYRIGHT © Standards New Zealand . Schedulessubscribed to may be held in printed form at any one time.5 118 ew sN rd da an St Insurance Company Stamp (Or name of insurance broking company confirming cover) SIGNED BY SIGNATORY TITLE (Clause numbers refer to NZS 3910:2013 and are for information only.106.84.) Ze ala n d *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. 6 46 07 87 22 42 14 Insurance Company Stamp (Or name of insurance broking company confirming cover) Date SIGNED BY SIGNATORY TITLE (Clause numbers refer to NZS 3910:2013 and are for information only. copy attached.) COPYRIGHT © Standards New Zealand 119 Schedules Ze ala n (Name of insurance company) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.84.106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. have been applied to this policy (Project title) 915670 165.1 an The limit of indemnity (GST exclusive) $ da Policy expiry date $ Deductible (GST inclusive) $ in the aggregate during the period of insurance.6. We do not warrant that this policy complies with the requirements of NZS 3910:2013.* Schedule 11 – Information on Contractor arranged professional indemnity insurance d To whom it may concern: From We confirm having effected professional indemnity insurance for: (Branch) (Address) (The Contractor) ew In respect of Policy wording title is Annual policy Project specific policy rd The following provisions apply: Yes/No sN We advise that special terms. NZS 3910:2013 . py This insurance issued is subject to the terms and conditions of the policy. St any one occurrence rig ht We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances.5 8. Schedulessubscribed to may be held in printed form at any one time.5 an Policy expiry date 8.1. copy attached.106. have been applied to this policy The following provisions apply: Material damage/construction project specific policy Annual run-off policy Annual cut-off policy da rd Yes/No 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 8.1 This policy has been endorsed to record as an additional insured: The Contractor Yes/No Subcontractors Yes/No 120 COPYRIGHT © Standards New Zealand .4 py hydrothermal activity Construction period earthquake tsunami cyclone storm lightning strike volcanic activity 6 46 07 87 22 42 14 geothermal activity from to Insurance maintenance period Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.* Schedule 12 – Information on Principal arranged construction insurance d To whom it may concern: From Ze ala n (Name of insurance company) We confirm having effected insurance for: (Branch) (Address) (The Principal) (Covering property at) (Class of insurance) ew In respect of: sN Policy wording title is (Project title) We advise that special terms.6 St The following forces of nature are insured: tornado flood rig ht landslip 8.8.84.8. 8.2.2 Yes/No rig ht 8.3.2 Yes/No Yes/No Yes/No 8.3(c) Value of items to be incorporated $ 8.1 Materials in storage (in New Zealand) Yes/No $ Testing and commissioning Yes/No $ Expediting expenses Yes/No $ Overseas airfreight Yes/No $ Partial occupation Yes/No $ Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3.84.3(a) Costs of demolition $ 8.3 d $ Ze ala n 8. 915670 165. NZS 3910:2013 COPYRIGHT © Standards New Zealand 121 .8.2. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.4 Void ab initio for non-payment of premium without prior notification Covers damage arising out of the Contract Works 6 46 07 87 22 42 14 py Policy extensions included are: Sub-limit (if applicable) 8.2(a) Existing structure * The sums insured are (GST exclusive): $ $ $ da Where more than one policy is involved in insuring all of the above items a separate Schedule 12 shall be completed for each policy.8.4 $ Non-earthquake Natural disaster Other (name) % of minimum of rd Schedules 8.1.3.5 an Policy cover terms included are: Discretionary cancellation clause Yes/No 8.1 Transit (in New Zealand) Yes/No $ 8.8.3.3 Reinstatement provision on building and contents Yes/No 8.3.8.3(d) An allowance for an increase in construction costs $ 8.3(e) An allowance for increased reconstruction costs ew TOTAL SUM INSURED $ The policy deductibles are (GST inclusive): sN 8.2.3.3(b) Professional fees $ 8.106.3.3.2.2(b) Other structures in the vicinity $ 8.3 Severally insured No settlement delay due to exercise of subrogation St 8.2(c) Contents $ Contract Price $ 8. ) 6 46 07 87 22 42 14 py rig ht St an 915670 165. We do not warrant that this policy complies with the requirements of NZS 3910:2013. Insurance Company Stamp (Or name of insurance broking company confirming cover) Date SIGNED BY ew SIGNATORY TITLE Ze ala n d This insurance issued is subject to the terms and conditions of this policy. Schedulessubscribed to may be held in printed form at any one time.84.* We undertake that this policy will not be cancelled or amended by us within the period of insurance without written advice to the insured party which has arranged the insurances. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 122 COPYRIGHT © Standards New Zealand .5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. da rd sN (Clause numbers refer to NZS 3910:2013 and are for information only.106. If not otherwise specified the works shall be in accordance with good trade practice. if within the Warranty Period the Warrantor is advised by the Principal in writing of any defect in the Warranted Works for which the Warrantor is liable under the terms of this warranty. attaching to any part of the Warranted Works.1 6 46 07 87 22 42 14 3. (c) Without unnecessary inconvenience to any occupants. (d) At the Warrantor’s Cost. C The Warrantor has agreed to provide a warranty in respect of the Warranted Works for the Warranty Period on the terms set out in this warranty. Any remedial work which the Warrantor is liable to undertake under this warranty shall be carried out: (a) To the standard required by the Contract. COPYRIGHT © Standards New Zealand 123 Schedules years from the date of Practical Completion of the Contract Works ew ‘Warranty Period’ Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. (b) In a prompt and timely manner. the Warrantor will promptly take steps to remedy the defect.5 an IT IS HEREBY AGREED The Warrantor warrants to the Principal that the Warranted Works are as required in the Contract.2 py The Warrantor agrees that.106. The Warranted Works are part of the Contract Works.* Schedule 13 – Form of Contractor (or Subcontractor) warranty THIS AGREEMENT is made on d (insert date) BETWEEN Ze ala n (‘the Principal’) AND (‘the Contractor’) AND (‘the Warrantor’) DEFINITIONS ‘Warranted Works’ BACKGROUND The Principal has entered into a contract (the ‘Contract’) with the Contractor for carrying out the Contract Works. and (e) Subject to reasonable access being provided to the Warrantor for the purpose of carrying out the remedial work. da rd sN A 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. B The Contractor has agreed to arrange for the provision of a warranty in respect of the Warranted Works for the Warranty Period on the terms set out in this warranty.84. NZS 3910:2013 . 2 This warranty shall be in addition to and shall not derogate from any manufacturer’s warranty or any warranty implied by law or the Defects Notification Period in the Contract. 3 Warrantor’s obligations rig ht St 1 3. 4. the Principal may then arrange for the remedial work to be carried out by others.4 Failure by Warrantor to perform remedial work sN 4 ew The Principal shall consider the Warrantor’s reasonable proposals and the parties shall endeavour in good faith to reach agreement. the dispute shall be resolved in accordance with clause 7.2 The Principal shall first give the Warrantor 10 Working Days notice. the Warrantor’s obligation under this warranty shall be only to repair or otherwise make good the defect. earthquake. If the Warrantor does not do so within that time. explosion. an 915670 165.4 The reasonable Cost of remedial work carried out by such other Persons including all reasonable Costs of the Principal shall be paid to the Principal by the Warrantor on demand. to carry out and complete the remedial work. slips. or where the defect may not be reasonably capable of rectification without substantial expense which is out of all proportion to the Cost of the Warranted Works: (b) The Warrantor may propose reasonable monetary compensation in lieu of remedying the defect.1 rd If the Warrantor fails to promptly. or workmanship other than caused by the defect in the Warranted Works. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. except for the defect remedied by the Principal or by another Person contracted by the Principal. errors. subsidence. Schedulessubscribed to may be held in printed form at any one time. (d) Any neglect or unnecessary delay by the Principal in giving notice to the Warrantor of a defect in the Warranted Works becoming apparent. da 4.3. the Principal may then advise the Warrantor in writing that the work will be carried out by other Persons. adequately and satisfactorily carry out the remedial work or to propose acceptable repair or compensation. or (c) The Warrantor may propose a combination of both repair and compensation. unless the Warrantor undertook the design of the part of the Warranted Works that is the subject of the defect.3 If the defect is reasonably able to be rectified by repair rather than by replacement. which continue in full force and effect. 3.3 rig ht St In such an event. Ze ala n (a) d * Where the Cost of replacement of work and/or Materials is out of all proportion to the consequences of the defect. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 (b) Fire. (c) Any force of nature which the Warrantor could not have reasonably foreseen. war. 6 46 07 87 22 42 14 (a) py 5 Exclusions The Principal agrees that the Warrantor is not liable for any defect or damage caused by: Wilful act or negligence of the Principal or any Person other than the Warrantor. or discrepancies. or such other reasonable time as agreed by the Principal. 4. COPYRIGHT © Standards New Zealand .5 4. the Warrantor is not released from its obligations under this warranty.106. (e) 124 Design faults. Where agreement cannot be reached. faulty materials.84. Any party which is a body corporate (other than a company) shall execute by affixing its seal. the Principal and the Warrantor cannot agree on a single arbitrator. In witness of which this deed has been executed. 7 Disputes sN ew Any dispute between the Principal and the Warrantor arising out of this warranty is to be referred to arbitration before a sole arbitrator. or applicable to. which shall be attested in the manner provided for in the rules of. but the signature shall be witnessed by another person. If there is only one director. either party may request the President of the Arbitrators’ and Mediators’ Institute of New Zealand to appoint an arbitrator. or (h) Fair wear and tear. COPYRIGHT © Standards New Zealand 125 Schedules Ze ala n d * (f) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Any of these parties which are a company shall execute the warranty by having it signed. In the case of a party who is an individual. NZS 3910:2013 .84. it is sufficient if the Warranty is signed under the name of the company by that director. 6 Assignment The Principal may assign the benefit of this warranty to any Person.Use of the Warranted Works by the Principal or any other Person in any manner or for any purpose not being the intended manner of use or purpose of the Warranted Works.5 an SIGNED on behalf of the Warrantor by: da Director St Director rig ht Director SIGNED on behalf of the Principal by: Director py Director 6 46 07 87 22 42 14 NOTE – The warranty shall be executed by the Warrantor and the Principal in the manner required for execution of a deed. (g) Failure by the Principal or other Person to maintain the Warranted Works in accordance with good practice and any manufacturer’s stated or recommended instructions or requirements. The witness shall not only sign but shall also add his or her occupation and address.106. within 15 Working Days of notice of dispute. The witness shall not only sign but shall also add his or her occupation and address. the body corporate. the party shall sign and the signature shall be witnessed by another person. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. If. rd SIGNED on behalf of the Contractor by: 915670 165. under the name of the company. by two or more directors. Alternatively. companies may execute under power of attorney. The Contractor and the Subcontractor have entered into a subcontract for the performance of part of the Contract Works and/or the supply of Materials described in Schedule A to this agreement (‘the Materials’) and intended to be used by the Contractor and/or the Subcontractor in the Contract Works. Schedulessubscribed to may be held in printed form at any one time. subject to all the provisions of this agreement having been fulfilled. D The Contractor has requested the Principal to authorise the Engineer to certify payment for the Materials notwithstanding that the Materials have not been delivered to the Site.84. the Contractor agreed to carry out the work and obligations imposed on the Contractor by the Contract (‘the Contract Works’). for the purpose of storage. notwithstanding that the Materials have not been delivered to the Site. sub-assembly. or as otherwise required for the Contract Works prior to being delivered to the Site for incorporation into the Contract Works.day of 20 d THIS AGREEMENT is dated the * Schedule 14 – Agreement for off-site Materials BETWEEN AND (‘the Contractor’) AND (‘the Subcontractor’) INTRODUCTION: A Ze ala n (‘the Principal’) By a contract dated the day of 20 ew and known as (‘the Contract’) made between the Principal and the Contractor. da rd sN B St an 915670 165.106.5 rig ht SCHEDULE A Description of Materials inclusive of work performed on them: py SCHEDULE B 6 46 07 87 22 42 14 The location in New Zealand at which the Materials will be stored is: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. fabrication. E The Principal has agreed to authorise the Engineer to certify payment for the Materials. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 SCHEDULE C ‘The Bailee’ shall be: The Contractor OR The Subcontractor 126 COPYRIGHT © Standards New Zealand . C The Contractor or the Subcontractor (as nominated in Schedule C) (‘the Bailee’) proposes to store the Materials at the premises of the Bailee (‘the Premises’) as identified in Schedule B as bailee for the Principal. The method used to mark the Materials and the procedures by which the mark is applied to the Materials shall be as required by the Contract or as otherwise approved by the Principal. UPON the request of the Subcontractor. 6 46 07 87 22 42 py 14 7. shall include in any Payment Schedule issued by the Engineer under the Contract a sum representing the reasonable value of such Materials calculated in accordance with the Contract. and the Contractor thereby suffers delay or the Contractor or the Subcontractor incurs additional cost. warranties. or provided that: Where the Principal takes possession of any Materials under clause 5(b) above. less any retentions or deductions prescribed in the Contract. 9. NEITHER the Contractor nor the Subcontractor will permit.2. 6. THE Contractor and the Subcontractor agree that the Materials will be held by the Contractor or the Subcontractor solely as bailee for the Principal and such bailment will constitute a security interest in favour of the Principal for the purpose of the Personal Property Securities Act 1999 (‘the PPSA’). 10. title to such Materials shall immediately vest in the Principal free of all security interests. THE undertakings. or cause the Materials to be taken away from the Premises. Ze ala n 2. ew 4. agreements and other obligations of the Contractor or the Subcontractor shall bind and be deemed to have been given or assumed by each of them severally and by both of them jointly. except: For the purpose of being transported to the Site and used in the Contract Works. 8. the Engineer shall advise the Subcontractor whether the Contractor has received any payment from the Principal for such Materials. all of which Materials are currently on the Premises identified in Schedule B. THE Premises identified in Schedule B are in the sole control of the party identified in Schedule C and that party shall act as bailee of the Materials until such time as the Materials are delivered to the Site or taken possession of by the Principal. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. rig ht St (d) Where the Principal takes possession of any Materials under clause 5(b) above.2. WHERE the Contractor receives payment for Materials and the Subcontractor is entitled to some or all of the Principal’s payment. charges and encumbrances of any nature whatsoever. THE Contractor and the Subcontractor agree that they will cause the Materials to be set apart at the Premises and be clearly and visibly marked individually or in sets as being the property of the Principal and their destination as being the Site.IT IS AGREED AS FOLLOWS: d * 1. and 915670 165. THE Materials to which this agreement relates are those described in Schedule A to this agreement.106. allow.84. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. UPON the Principal having made payment for the Materials.1 or 14. and additional work has been carried out on those Materials since being paid for by the Principal. the taking of possession shall be treated as a Variation under the Contract.5 an (c) da rd (b) That the Principal may at its sole discretion take possession of the Materials for use other than for the Contract Works. unless the taking of possession is pursuant to clauses 14. covenants. THE Engineer. (a) sN 5.2 of the Contract. the Principal shall pay the Contractor for that additional work in accordance with the Contract before taking possession of the Materials. and upon the Contractor providing satisfactory evidence that the requirements of clauses 12 and 20 below have been fully satisfied. upon being satisfied that the Materials have been set apart and marked as required by this agreement. the Contractor shall promptly pay the Subcontractor for such Materials. NZS 3910:2013 . COPYRIGHT © Standards New Zealand 127 Schedules 3. THE Bailee hereby grants to the Principal reasonable.  This shall include procuring from any third party who has registered a financing statement against the Bailee. and verify or undertake the marking and setting apart of the Materials. 126. THE Bailee shall.d * 11. 14.106. Schedulessubscribed to may be held in printed form at any one time. 13. unloading. 128 COPYRIGHT © Standards New Zealand . Ze ala n 12. 129. 121. St an (d) Take possession of the Materials for use other than for the Contract Works. and 148 of the PPSA shall not apply to this agreement. 20. Such insurance may include an exclusion for loss or damage sustained during processing. remove or cause or permit the Materials to be moved from the Premises. The Bailee shall take all steps and do all things as shall be necessary to ensure that the Principal obtains access to the Premises for the purposes of this agreement. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. rig ht 17. and freight. THE Bailee shall not. 125. Such transportation shall be at the cost of the Bailee in all things including loading. and 134 of the PPSA shall apply to this agreement. 915670 165. the Bailee shall. 18.5 and in each case in a manner that does not cause damage to any other property at the Premises. in a form acceptable to the Principal. and unencumbered right of access to the Premises to: Inspect the Materials. the Bailee shall furnish the Principal and the Contractor with evidence of such insurance. 127. 133.1 of the Contract. when required to do so by the Contractor or the Principal. WHERE the Materials are not insured under the construction policy provided in accordance with 8.1 of the Contract for the full duration of the off-site storage.8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 (b) Effect a transit insurance policy for transit of all the Materials from the Premises to the Site in the name of the Principal to the satisfaction of the Principal. The Bailee shall nevertheless be responsible to the Principal for any loss or damage thereto and for any costs of storage or handling. ANY rights of the Contractor and the Subcontractor as debtors under sections 116. free. and da (c) rd (b) Take possession of the Materials for the purpose of delivery to the Site and inclusion in the Contract Works. 131.3. arrange for the transportation of the Materials to the Site. ew 15. NOTHING in sections 114(1)(a). except as permitted in clause 5.84. THE Principal shall (at the Contractor’s reasonable cost) register a financing statement on the Personal Property Securities Register (‘the PPSR’) listing the Principal as secured party and the Contractor and the Subcontractor as debtors for any security interest arising from the bailment of the Materials referred to in this agreement. THE Bailee shall promptly do all things including executing any documents and providing all information which the Principal requires to ensure that the Principal receives and maintains at all times a first ranking security interest in the Materials. a waiver.2. 6 46 07 87 22 42 14 (a) py 19. Remove the Materials from the Premises for the purpose of delivery to the Site and inclusion in the Contract Works. at its expense: Effect a material damage insurance policy covering all of the Materials subject to this agreement in the name of the Principal to the satisfaction of the Principal.1 of the Contract for the full duration of the off-site storage.1 or 8. of any security interest or claim which might otherwise extend to the Materials or their proceeds. (a) sN 16. as provided in 8. as provided in 8. THE Bailee shall not discharge or amend any financing statement registered under clause 11 above without the prior written consent of the Principal. 120(2). WITHIN 15 Working Days of the date of this agreement.2. or affect the Engineer’s powers under the Contract to order the removal from the Site or the Premises of Materials which are not in accordance with the Contract and the substitution by the Contractor at its own risk and expense of proper Materials. if it charges or mortgages all or any part of its property (either real or personal). 915670 165. assets. Ze ala n (c) d (b) It has the ability to assign and transfer the Materials to the Principal or the Contractor. * (a) The Materials will be transferred to the Principal or the Contractor free of any security interest. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or undertaking. waive. and ew 23. preparation. rd 25. THE Bailee represents and warrants to the Principal and to the Contractor (where applicable) that: It has good and clear title to the Materials.106. THE Bailee undertakes that. and any amendment of this agreement. execution. WORDS and phrases in this agreement shall have the same meanings as are ascribed to them under the Contract except where the context or any express provision of this agreement requires otherwise.5 an of da SIGNED BY rig ht of SIGNED BY (Contractor) (Authorised Signatory) 6 46 07 87 22 42 14 (Subcontractor) py of (Principal) (Authorised Signatory) St SIGNED BY (Authorised Signatory) COPYRIGHT © Standards New Zealand 129 Schedules 22. or undertaking does not extend to the Materials once they have been paid for by the Principal or the Contractor (as applicable). NOTHING in this agreement shall be deemed to limit. it will obtain written confirmation from the chargee or mortgagee that the charge or the mortgage over such property.21. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. assets. waive or affect any other powers conferred on the Engineer and/or the Principal under the Contract.84. NZS 3910:2013 . sN 24. Nothing in this agreement shall be deemed to limit. EACH party shall pay its own costs of and incidental to the negotiation. and (c).4.* Schedule 15 – Practical Completion Certificate d This Practical Completion Certificate is issued under 10. 915670 165. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents NZS 3910:2013 (list minor omissions and defects) 130 COPYRIGHT © Standards New Zealand .1 (a). (b). (b) The following Separable Portion ew and issued in accordance sN Receipt of the Contractor’s notice dated with 10.4 (select one).4.2 is acknowledged.4.1(a). Ze ala n Contract for (Contract name and number if applicable) Principal (Insert name of Principal) Contractor (Insert name of Contractor) This certificate relates to: (a) The whole of the Contract Works referred to above.3(a) or 10.5 Practical Completion was achieved (insert date) at rig ht Signed by the Engineer Name SCHEDULE 6 46 07 87 22 42 14 py Date (insert time). Schedulessubscribed to may be held in printed form at any one time. (b). The following omissions and/or defects have been assessed as being of a minor nature satisfying the criteria in 10. notwithstanding that there may be minor omissions and/or minor defects (as listed in the attached schedule) which satisfy the criteria in 10. or at the latest within Working Days of the date of this certificate.3(a) or 10.84.4.4.4.4. and (c) and were identified during an inspection carried out by the Engineer or Engineer’s Representative on (insert date) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. (specify) rd In accordance with 10. St on an da The Contractor is required to remedy all of the listed omissions or defects within the period stated in the attached schedule against the relevant omission or defect. the Engineer certifies that the Contract Works or Separable Portion to which this certificate relates qualify for a Practical Completion Certificate under 10.4.4.106. 5 6 46 07 87 22 42 14 py rig ht St an Date COPYRIGHT © Standards New Zealand 131 Schedules (Insert name of Contractor) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.84. Ze ala n Contract for (Contract name and number if applicable) Principal (Insert name of Principal) Contractor This certificate relates to: (a) The whole of the Contract Works referred to above.1. the Engineer certifies that the Contract Works or Separable Portion to which this certificate relates qualify for a Final Completion Certificate issued under 11. (b) The following Separable Portion ew (specify) sN In accordance with 11.* Schedule 16 – Final Completion Certificate d This certificate is a Final Completion Certificate issued under 11.3.3.106. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3 (insert date) at (insert time). rd on Signed by the Engineer da Name 915670 165. NZS 3910:2013 .1. 1 102 Ze ala n The provisions of Section 1 of NZS 3910:2013 shall apply to these Conditions of Tendering. the tenderer may request the issue of an explanatory notice. 102. and to have satisfied itself as far as is practicable for an experienced contractor before tendering as to the correctness and sufficiency of its tender for the Contract Works and of the prices stated in its tender. 103. it shall be sent to all tenderers and shall upon issue become part of the Tender Documents. sN (a) To others.5 Tenderers to inform themselves an 103 103.84. 6 46 07 87 22 42 14 py 104 Ambiguities in Tender Documents 104. allow for all the Contractor’s obligations under the Contract as set out in the Tender Documents. examined the Tender Documents and any other information supplied in writing.1 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. COPYRIGHT © Standards New Zealand . providing the documents are returned in reasonable condition not later than the time of closing of tenders.2 The tendered price shall. Issue of documents 102. providing the documents are returned in reasonable condition not later than 10 Working Days after the date on which advice is notified that another tender has been accepted or that no tender is being accepted. If an explanatory notice is issued. da (c) rd (b) To other tenderers. except where otherwise provided. NZS 3910:2013 132 Where the Tender Documents issued to prospective tenderers are ambiguous or unclear to a tenderer.1 rig ht St Each tenderer shall be deemed to have inspected the Site.CONDITIONS OF TENDERING d * 101 Interpretation 101. Conditions of tendering Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 Any deposit charged on the Tender Documents shall be refunded as soon as practicable: To the successful tenderer without requiring return of the documents. and 915670 165.1 ew Tender Documents issued to prospective tenderers except schedules of prices for use in the preparation of tenders remain the property of the Principal.106. which shall be endorsed on the tender.5 da Tenders shall be delivered before the closing time. but reserves the right to consider any tender whether or not that tender has been submitted with endorsement. Any supplementary information required by the Tender Documents as listed in the schedule to these conditions. Where no such form is provided they shall include: (b) The tendered price together with any completed schedules required by the Tender Documents for submission at that time to show how the tendered price is made up. 105. NZS 3910:2013 . Each tender shall be identified as a tender for the particular Contract and addressed as required by the Schedule to Conditions of Tendering. St (a) an Tenders shall be prepared in the form required by the Tender Documents.5 The Cost of preparing and submitting a tender shall be borne by the tenderer.2 d * In the absence of an explanatory notice. COPYRIGHT © Standards New Zealand 133 Conditions of tendering sN Tenders will close at the time and place stated in the schedule to these conditions and each shall be enclosed in a sealed envelope or. where provided in the Schedule to Conditions of Tendering. Ze ala n 104.106. or on behalf of. the tenderer. submitted in the electronic form stated in the Schedule to the Conditions of Tendering. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 rd 105.104.84.2 915670 165. 105. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and py (e) 46 07 87 22 42 14 Any rates or percentages required to be nominated in the Schedule to Conditions of Tendering. tenders may be submitted subject to any reasonable interpretation of any ambiguity or uncertainty in the Tender Documents.3 The Principal would prefer to receive tenders based on the Tender Documents.3 The name of the tenderer and a complete postal address within New Zealand for service of notices. 105. 105 Submission of tenders ew 105. rig ht (c) 6 (d) Any interpretation or other statements by the tenderer affecting the tender.4 The tender shall be signed by. 1 6 46 07 87 22 42 14 py If no tender has been accepted within 1 Month after the closing of tenders. and the Principal or its agent becomes aware of the error prior to acceptance of any tender.106.84.2 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.6 Ze ala n d * If the tender contains any error in extension of unit rates or in summation of items so as to vary the tendered sum. each tenderer shall be notified in writing by the Principal or its agent whether its tender is or is not still under consideration. 105.1 The lowest priced or highest scoring or any tender will not necessarily be accepted. No amended tender shall be considered if received after the closing time for tenders. stated in the Schedule to Conditions of Tendering. 108. then the Principal shall draw the error to the attention of the tenderer whose tender contains the error.1 St Tenders shall be evaluated in accordance with the method. 107.5 Tender evaluation an 107 da The successful tenderer shall be notified in writing by the Principal or its agent. NZS 3910:2013 134 Unsuccessful tenderers who have submitted bona fide tenders complying with the Tender Documents shall be notified by the Principal or its agent of the name and tender price of the successful tenderer and the other tender prices within 10 Working Days of acceptance of the successful tender.2 915670 165.105. Conditions of tendering Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Acceptance of tender sN 106. the rates included in the Schedule of Prices shall be deemed to be fully inclusive of all allowances for Onsite Overheads and for Off-site Overheads and Profit. rd 106. if any. Notification of acceptance rig ht 108 108. The Principal shall invite the tenderer to confirm that its tender remains open for acceptance at the tendered sum notwithstanding the error. COPYRIGHT © Standards New Zealand . Unless the tenderer so confirms its tender it shall be deemed to be withdrawn.7 106 ew Unless otherwise provided in the Schedule to Conditions of Tendering. that its tender has been accepted. SCHEDULE TO CONDITIONS OF TENDERING * The Conditions of Tendering are those set out in NZS 3910:2013. the amount of the Tender Documents deposit 103 Tenderers to inform themselves 103. tenders will be acceptable in the following (specify type of file for example Word.106.2 ew 102 (yes or no) submitted with the tender? 6 46 07 87 22 42 py 14 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 (date) (time) (physical or electronic address) (date) (time) (yes or no) If yes. NZS 3910:2013 COPYRIGHT © Standards New Zealand 135 . PDF) St Are electronic tenders acceptable? electronic form: Is supplementary information required to be rig ht 105. the appointment details are: rd Submission of tenders 915670 165. Contract for: Clause Title and subject matter Specific condition data in Conditions of Tendering (Expand cells if required) Issue of documents Is a Tender Documents deposit required? (yes or no) If yes.3(c) (yes or no) (address) da 105 ($) sN shall be: Conditions of tendering 102. Ze ala n d Clause numbers refer to Conditions of Tendering clauses.5 Tenders shall close at: an 105. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1 Is an appointment required to view the Site? If yes.84. 106.3(e) (Expand cells if required) * Title and subject matter Ze ala n Clause in Conditions of Tendering and Profit incurred in relation to an extension of time required to be nominated in the tender? (yes or no) required to be nominated in the tender? (See 9.1 Tender evaluation da for Off-site Overheads and Profit? 107 rd submitted with the tender is: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.8.4.3. & 9. Conditions of tendering Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3.5 an The tender evaluation method shall be: 6 46 07 87 22 42 14 py rig ht St 107. 9.15 of the General Conditions) Are the percentages for On-site Overheads and for (yes or no) Off-site Overheads and Profit to be added to Net ew Is the percentage for processing of Variations (See 2. 9.10 of the General Conditions) 915670 165.3. NZS 3910:2013 136 COPYRIGHT © Standards New Zealand .3. & 9.3.11 of the General Conditions) d 105.3.8.7 Are the rates included in the Schedule of Prices fully (yes or no) inclusive of all allowances for On-site Overheads and (see 9.9. the supplementary information required to be 105.1 of the General Conditions) Cost for the Contract Works or any Separable Portion sN in a cost reimbursement contract required to be nominated in the tender? If yes.3.Specific condition data Are the percentages for On-site Overheads and (yes or no) for Off-site Overheads and Profit required to be nominated in the tender? (See 9.3.10 of the General Conditions) Is the Working Day rate in compensation for time- (yes or no) related On-site Overheads and Off-site Overheads (See 9.84.9. financing Costs and return on the investment in the Plant as appropriate should be assessed and recovered as part of the Net Cost. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 6 46 07 87 22 42 py 14 Off-site Overheads and Profit and On-site Overheads These two items are intended together to cover all the Contractor’s overheads and also the Contractor’s profit. but still sufficiently reliable. NZS 3910:2013 .106. and always subject to any adjustments provided for in the Contract. Costs which are readily identified with one particular work item will not form part of the overheads but will be included in the Net Cost of that item. other than those Costs which fall within the description of overheads.1 will apply equally to any replacement bond under that clause.2 Definitions The defined words and phrases are printed with initial letters in capitals. On-site Overheads may include Costs incurred away from the Site if they have the character described in the definition. but does include return on investment in Plant which would normally be recovered in Plant hire rates. G Section 1 Interpretation G1. as may be appropriate. The identifying of full details of actual Costs may in some cases be unnecessarily burdensome. It does not include profit. and to highlight some clauses that impose particular obligations on a party under the Contract. Their purpose is to help users understand the principles behind the substantive clauses.84. for example where they are overheads which relate to fabrication or other work carried out elsewhere and are not part of the Net Cost. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. It may be a matter of calculating the Contract Price during the course of the Contract. Assessment should be used not only where the price is fixed in advance of the work being done. the requirements for a Contractor’s Bond in 3. or on the basis of an assessment of Cost.5 Net Cost can be agreed or fixed either on the basis of actual Cost. Net Cost 915670 165. using a reasonable hire rate. ew Contract Price sN The Contract Price may or may not be stated in the Contract as a precise sum. particularly in the case of measure and value and cost reimbursement contacts. If the Contractor’s own Plant is used then depreciation.GUIDELINES Ze ala n d * These guidelines are not part of the Contract between the parties. Where a particular word or phrase is defined by reference to a particular clause. Net Cost is the Cost after the deduction of trade discounts but not special discounts for early payment or obtained by the Contractor by special arrangement. that clause is designed to convey the meaning of the word or phrase wherever it is used. Contractor’s Bond da rd Because the definition of Contractor’s Bond includes a replacement bond. method. but also after the work has been done where assessment provides a simpler and more convenient. COPYRIGHT © Standards New Zealand 137 Guidelines rig ht St an This is intended to cover all Costs incurred by the Contractor in performing the work in question. where the responsibility for and risk of determining the approximate quantities of the work lie with the Principal. a measure and value type of contract should be used.2. such as by the Net Cost method (see 9.7) or by having a separate section of the Schedule of Prices with Provisional Sums or Provisional Items with notional quantities (see 12. such as for the normal delay between the incurring of expenditures and their reimbursement under the Contract. or a series of lump sums. and subsequently the Contractor. G Section 2 The Contract sN G2. 915670 165.d * General finance Costs. are required to take the risk of determining the quantities of various types of work required to be carried out to complete the Contract Works defined in the Drawings and Specifications. such items not including measured quantities. these Costs may form part of the Net Cost of that Variation. the risk of determining the quantities of work to be carried out. da The essential feature of the lump sum contract arrangement is that tenderers. NZS 3910:2013 138 In a measure and value type of contract. because it can confuse responsibilities for accuracy of the quantities. G2. Provisional Item ew Provisional Items are items with rates against nominal quantities. This risk can be partly shared with the tenderers and the successful Contractor by defining some parts of the work in the Schedule of Prices as lump sum items. the amount payable to the Contractor is based on the value of the work substituted for the Provisional Sum. In the case of Provisional Sums. Provisional Items are different from Provisional Sums.5). are part of the Off-site Overheads.3 Measure and value contract Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.10) to be used for valuing Variations alone. rig ht There are other ways of defining prices for use in the valuing of Variations. If the work is carried out.9 and 12. Ze ala n Profit does not include return on investment in Plant which would normally be recovered in Plant hire rates. Where a Variation causes additional finance Costs beyond what is normal. as defined in 2. or to help with the calculation of progress payment entitlements. COPYRIGHT © Standards New Zealand .2 Lump sum contract rd The first of several types of contract provided for is a contract for a lump sum. and stating them in the Tender Documents (usually in the Schedule of Prices) lies with the Principal.84. This should be discouraged (notwithstanding 2. 6 46 07 87 22 42 14 py If it is still considered necessary to include quantities in the Schedule of Prices.5 St an Sometimes quantities are included in Schedules in order to obtain rates for use in valuing future Variations.106. the amount payable to the Contractor is calculated with reference to those rates and the actual quantities.2.4 and 2.3.2. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Ze ala n d * Measurement for payment purposes should be as described in ‘methods of measurement’ or ‘basis of payment’ clauses set out in the Contract. The use of standard documents (such as NZS 4202 or NZS 4224) for this purpose may be appropriate. The method of measurement could alternatively be included within the descriptions of the work in Specification clauses or within the item descriptions in the Schedule of Prices. In any event, the definition of items needs to be comprehensive and unambiguous. Anything less may lead to disagreement on whether parts of the Contract Works are or are not included in items making up the Contract Price. G2.4 Cost reimbursement contract sN ew Previous editions of NZS 3910 mentioned cost reimbursement contracts only by name but with little more, except that payment would be made in accordance with a method set out in the Special Conditions. In NZS 3910:2013, a simple method for cost reimbursement is described, similar to the Net Cost method for valuing Variations. Payment is made for the Contractor’s costs, excluding those not incurred in carrying out the Contract Works, plus reimbursement of overheads and profit. There are requirements for access to the Contractor’s cost records and for the Contractor to keep the Engineer informed of the likely final price for the work. 915670 165.84.106.5 G2.9 Assignment da rd Other cost reimbursement methods are possible, but these would need to be further defined in Special Conditions. These might include agreed rates for Contractor labour inputs in a Schedule of Prices, or the use of a target cost method with agreed percentages for gain-share or pain-share, depending on whether the target price was under or overspent. rig ht G2.10 No waiver This clause makes it clear that no act, or agreement to depart from the terms of the Contract, can be construed as a waiver of rights, unless specifically agreed to as such in writing. 6 46 07 87 22 42 py 14 COPYRIGHT © Standards New Zealand 139 Guidelines St an There are restrictions on the assignment of the Contract by either party. Assignment by the Contractor includes any substantial change in ownership or shareholding or restructuring of the Contractor so that the effective control of the Contractor passes to another Person. Subcontracting by the Contractor is different from assignment, and that is dealt with in Section 4. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 G Section 3 Bonds Contractor’s Bond * G3.1 Ze ala n d G3.1.1 – G3.1.5  Where called for in the Special Conditions the Contractor shall provide a Contractor’s Bond in the form of Schedule 3 not later than 2 Months after the Date of Acceptance of Tender. The Contractor is not entitled to receive any progress payments until the bond has been provided, and a failure to provide the bond may be treated as a default. G3.1.7  The Principal shall notify the Contractor’s surety that the Contractor is released from the bond within 5 Working Days after the Practical Completion Certificate. sN ew G3.1.8 – G3.1.9  If the Principal contends that the Contractor has failed to perform its obligations the Engineer is required to determine the estimated Cost of any remedial or other work outstanding. The Principal shall release the original bond if the Contractor provides a replacement bond to the value of the Engineer’s estimate to ensure performance of that work. G3.2 Principal’s Bond da rd G3.2.1 – G3.2.3  Where called for in the Special Conditions the Principal shall provide a Principal’s Bond in the form of Schedule 4 on the Date of Acceptance of Tender. If the bond is not provided the Engineer shall, at the Contractor’s request, suspend the works. The Contractor may treat the Principal’s failure to provide a bond as a default under 14.3. G3.2.5 – G3.2.7  The Contractor shall notify the Principal’s surety that the Principal is released from the bond within 5 Working Days after the Contractor has received the final payment under the Contract in accordance with the Final Payment Schedule or a related arbitrator’s award. If the Contractor contends that the Principal has failed to perform its obligations, the Contractor is required to notify the Principal of the amount due and owing by the Principal or payable as damages. The Contractor shall release the original bond if the Principal provides a replacement bond to the value of the amount notified by the Contractor. rig ht St an 915670 165.84.106.5 G Section 5 General Obligations 6 46 07 87 22 42 14 G5.4 Possession of the Site There are a number of obligations required to be met by the Contractor before any work can commence on Site. These may include obligations about insurance, the programme, a safety plan, a quality plan and a traffic management plan. In addition, the Contractor has to mobilise its resources. The Contractor should be allowed sufficient time to fulfil these obligations, so it is important that a realistic start date is determined. It should be borne in mind that, under 10.1, the Contract period will usually commence on the date on which the Contractor is given possession of the Site under 5.4.1 or would have been entitled to possession but for a failure to provide evidence of insurances (see 10.1.1). py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 G5.6 Care of the works and Site G5.6.5  In the event of any loss or damage to the Contract Works or Materials or the Site, the Contractor is required to attend urgently to matters of safety or environmental impacts. The Contractor shall also notify the Engineer. 140 COPYRIGHT © Standards New Zealand * The Cost of repair of loss or damage is borne by the Contractor unless provided for under 7.1.3 (indemnity) or 9.5 (unforeseen physical conditions) or unless the loss or damage has been caused by an excepted risk as defined in 5.6.6. d G5.10 Programme Ze ala n The Contractor shall prepare a programme for the works and submit it to the Engineer within 10 Working Days of the Date of Acceptance of Tender. The programme shall show how the Contractor proposes to meet the Due Date for Completion and is to be used to track progress. No payment will become due to the Contractor until the programme has been provided. ew If a Comprehensive Programme is required by the Special Conditions, it shall be submitted within 20 Working Days. There are additional requirements for a Comprehensive Programme. rd sN In neither case is there a requirement for the Engineer to approve or otherwise accept the programme, but it is important that the programme is complete and can be used by both the Contractor and the Engineer. The programme should provide information on key activities and dates and will provide guidance to the Engineer for the issue of further Drawings, Specifications, and instructions, and for Materials, services, and work to be provided by the Principal. da Where the programme is updated, the Contractor should provide realistic information, even if this indicates a completion date later than the Due Date for Completion and any extensions of time claimed. The purpose is to provide the Engineer with a realistic assessment so that he or she can consider how best to deal with the situation. The fact that the Contractor indicates a date later than is required by the Contract will not excuse the Contractor from its obligation to complete within the time required. St an 915670 165.84.106.5 rig ht In addition to the Contractor’s obligations under the Health and Safety in Employment Act, a Site-specific safety plan may be required by the Special Conditions. The Engineer shall either accept the plan or give reasons why it is not accepted. Work cannot commence on Site until the Site-specific safety plan has been accepted. 6 46 07 87 22 42 14 G5.18 Quality plan py A quality plan may be required by the Special Conditions. The Engineer shall either accept the plan or give reasons why it is not accepted. Work cannot commence on any part of the Contract Works until the quality plan relating to that part of the Contract Works has been accepted. G5.19 Traffic management plan A traffic management plan may be required by the Special Conditions. The Engineer shall either accept the plan or give reasons why it is not accepted. The Contractor cannot commence any part of the Contract Works on Site until the traffic management plan relating to that part of the Contract Works has been accepted. COPYRIGHT © Standards New Zealand 141 Guidelines G5.17 Safety plan Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 2 Role of Engineer rig ht G6. 6 46 07 87 22 42 14 Examples of where the Engineer will act on behalf of the Principal are in: py (a) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Either the Contractor or the Engineer may then require the other to meet to explore proposals for avoiding or reducing the impact of the notified matter. while the Engineer is retained by the Principal and has certain duties owed exclusively to the Principal.2. da The method of appointment envisaged in 6. materially delay completion of the Contract Works. A failure to notify on the part of the Contractor may affect the valuation of any Variation arising out of the matter. It records that.1  This clause defines a dual role for the Engineer.1 is for the Engineer to be named in the Special Conditions. NZS 3910:2013 Ordering a Variation to the Contract Works. or (b) When deciding matters specifically referred for the Engineer’s decision.106. Examples of other situations where the Engineer is called on to exercise professional judgement and shall act fairly and independently of either party include: (a) When certifying or valuing work. or (b) Giving directions on matters left by the Specifications or Drawings for later decision (for example.3 shall be followed. intended to reflect the common law. G6.84. 915670 165. the selection of paint colours or surface finishes). and skills in contract management. the process in 6. the Engineer is required to act fairly and impartially. the Engineer is also vested by both parties to the Contract with the power to make certain decisions which bind them both.G5. and so he or she will be visible to the parties at the time the Contract is tendered and entered into. St G6. or result in a breach of a statutory duty. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.21 Advance notification This should help promote a no-surprises culture. As the Principal’s representative. the Engineer can commit the Principal contractually and is accountable to the Principal. In this latter role. Ze ala n d * The Contractor and the Engineer are required to notify each other as soon as they become aware of any matter which is likely to materially alter the Contract Price. experience of the business processes of construction contracting. However. In this capacity the Engineer will act in the interests of the Principal.5 an If a replacement Engineer is appointed by the Principal after tenders are received or the Contract is entered into.1 ew G Section 6 Engineer’s Powers and Responsibilities Appointment of Engineer rd sN No specific professional or technical qualifications for the Engineer are required. it is desirable that a person appointed as Engineer to manage a Contract under NZS 3910:2013 should have an understanding of the technologies on which the Contract Works are based.1. 142 COPYRIGHT © Standards New Zealand . one of the objectives of this being to minimise disputes. Ze ala n d * The requirement for the Engineer to act fairly and independently in such matters does not preclude the Engineer consulting with the Principal, taking note of the Principal’s concerns. Nor does it preclude consulting with the Contractor, taking note of the Contractor’s concerns. However, the decision shall be the honest decision of the Engineer exercising professional judgement. The Contractor has protection under 1.6 and 6.2.4 if the Engineer does not exercise the Engineer’s dual role appropriately. Further protection is afforded by the fact that, while the Engineer’s directions and decisions are binding on the Contractor under 5.1.2, they are not necessarily final, because of the review and dispute resolution provisions of Section 13 and of the Construction Contracts Act. Engineer’s Representative sN G6.3 ew To assist in achieving fairness and impartiality of decision making, a separation of duties between the Engineer and other individuals already involved in the design of the project or in any other role that may impair the ability of the Engineer to act fairly and impartially should be considered by the Principal when appointing the Engineer. The powers and obligations of the Engineer’s Representative will depend on the extent of delegation under 6.3.3. 915670 165.84.106.5 G7 Indeminity an G Section 7 Indemnity da rd In the exercise of those powers, the Engineer’s Representative will need to be aware of and observe the requirements of 6.2.1 and its associated guideline. St The Contractor’s obligations for the care of the Contract Works are as set out in 5.6. rig ht G8.1 General Section 8 sets out the insurances required for the Contract Works. The Special Conditions should set out who is responsible for arranging those insurances, the extent of the cover required, the sums insured required, and any limits of liability. It may be prudent for all parties to consider whether any additional insurance is desirable in the particular case. It is to be noted that the provision of insurance is merely one of the means available for managing some of the risks involved in contract work. 6 46 07 87 22 42 py 14 G8.1.4  All insurance policies are subject to a deductible or excess, which is the amount of each claim for which the policy holder is responsible and would be deducted from each claim. In most cases the Contractor will bear the policy deductible, except where the Principal arranges the insurance. COPYRIGHT © Standards New Zealand 143 Guidelines G Section 8 Insurance Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 Ze ala n d * Where the Contractor arranges the insurance, the Contractor can choose a level of deductible that is appropriate in the Contractor’s interests. Where the Principal arranges the insurance, the deductible chosen by the Principal could be above the level the Contractor can bear. Under these circumstances the Principal can specify in the Special Conditions a Nominal Deductible which is less than the insurance policy deductible but which is appropriate for the Contractor to bear. The Principal meets the insurance policy deductible and carries the difference between that deductible and the Nominal Deductible. However, the Contractor is only required to meet the Nominal Deductible where the Contractor is the cause of the loss. ew G8.1.6  Under the provisions of the Contract relating to the care of the works and indemnity, the Contractor is not responsible for certain types of perils which are normally treated as excepted risks and the Principal is exposed to a loss from them. Those excepted risks that are to be insured by the Contractor shall be set out in the Special Conditions. G8.2 Contractor arranged insurances – General da rd sN G8.2.1   The insurances arranged by the Contractor need to be approved by the Principal for the level of security afforded by the insurer, the scope of cover, and the terms and any conditions of the policy. The insurer or broker who issued the policy should complete Schedules 7 to 11 as appropriate to the type of insurance. These Schedules are then submitted to the Engineer who should check that the insurance arranged is in accordance with the requirements of the Contract. These Schedules may provide more information than is specifically required, the intention being to provide a fuller explanation of the policy. 915670 165.84.106.5 an Before accepting the Schedules the Engineer may need to seek professional insurance advice. St If the Engineer is not satisfied with the information provided in the Schedules, he or she may request a full copy of the relevant insurance policy under 8.2.7. 6 46 07 87 22 42 14 py rig ht G8.2.2  A discretionary cancellation clause in an insurance policy enables the insurer at any time to terminate the insurance and refund a portion of the premium. Projectspecific insurance policies cannot be cancelled, but all annual policies are subject to discretionary cancellation. The discretionary cancellation clause will specify the period of notice to be given before cancellation becomes effective. In such cases the Contractor shall provide replacement insurance and replacement information Schedules. Where annual policies are accepted, the Engineer will need to put in place a procedure to ensure that new Schedules are received 15 Working Days prior to expiry as required by 8.2.6. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 144 G8.2.3(a)  When an insurance claim is paid, the level of cover under the policy may be reduced by the amount of the payment. This clause requires the Contractor to obtain the full value of the cover again. This may be achieved through a new policy or by reinstatement of the sum insured under the existing policy. This reinstatement will only occur progressively as the repair of the lost or damaged work progresses. An additional premium may be payable. It should be noted that, in accepting reinstatement of the policy, the insurer may not offer the same terms as previously obtained. COPYRIGHT © Standards New Zealand Ze ala n d * G8.2.4  An insurance policy is a promise to pay under certain circumstances. This promise is made by the insurance company on the promise of the insured to pay the premium within a specific period. If the promise to pay the premium is not fulfilled, the policy never comes into existence: it is voided ab initio. Most insurance companies will give an undertaking that they will remind the insured if the premium is not paid. G8.2.6  Construction insurance policies come in three main types: project-specific, annual cut-off, and annual run-off. A project-specific construction policy is arranged specifically for the project and should have the required sums insured and be for the full duration of the project. All its terms and endorsements will apply for that specific project. sN ew An annual cut-off construction policy is arranged for a 12-Month period to cover some, or most, of a Contractor’s or Principal’s construction projects undertaken during that annual period, but all cover ceases on the policy expiry date. This policy may be renewed with the same or another insurer. Provided the cover is renewed, there should be no gap in cover on a specific project. da rd An annual run-off construction policy is arranged on a 12-Monthly basis to cover some, or most, of a Contractor’s or Principal’s construction projects commenced during that annual period. After expiry of the policy, cover continues with the insurer through to completion of the insured projects, provided the appropriate additional premium continues to be paid. If no additional premium is paid during this run-off period, there is no cover under this type of policy. 915670 165.84.106.5 an Both annual forms of policy will have qualifying criteria for the type of work undertaken, project values, and project duration. If the project is outside any one of these criteria, no insurance is provided even though the policy will be in existence. rig ht G8.3.1  Where the Special Conditions identify the Contractor as the party responsible to provide construction insurance, the Contractor shall arrange a construction insurance policy in the names of both the Contractor and the Principal. The policy being in both names means that either party can claim under the policy, and the insurer cannot recover from the other party (subrogation) even if that party was at fault. 6 46 07 87 22 42 14 py The Contractor can choose whether or not to include Subcontractors as insured parties under the policy. If Subcontractors are not included, this does not mean that their work is not covered. What is insured differs from who is insured. It is the whole Contract Works that are insured, whether or not in part carried out by Subcontractors. Where the Principal is identified in the Special Conditions as the party required to arrange the construction insurance, the Principal shall effect and pay for the policy. This policy shall be for the same duration and have the same extent of cover as if the Contractor was required to arrange the insurance, except that the policy shall be extended to include as an insured the Contractor’s Subcontractors (see 8.8.1). COPYRIGHT © Standards New Zealand 145 Guidelines St G8.3 Contractor arranged construction insurance Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. NZS 3910:2013 Otherwise. a provision called ‘average’ may apply. and the Principal arranges its own annual insurances from this time onwards. rd Paragraph (b) is also a post-loss allowance to cover professional fees for the demolition and reconstruction. in accordance with their respective rights and interests. It does not cover the professional fees for the original design of the project. rig ht St Paragraph (e) covers the additional cost of reconstruction assuming that the Contract Works were to sustain a total loss at any time up to the date of issue of the Final Completion Certificate.3.Ze ala n d * G8. It does not cover the demolition of an existing building on the Site. they are not covered by the insurance. 6 46 07 87 22 42 14 G8. they are entitled to receive the proceeds of any claim on the policy in priority to anyone else. mortgagees. 915670 165.84. and any loss will only be paid in the same ratio as the sum insured bears to the total level of cover required. If the value of Variations exceeds this allowance during the Contract Period. and others with money invested in the project may require their interests to be noted in the insurance policy. At Practical Completion the risk of the project is for the most part transferred to the Principal. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. da Paragraph (c) covers items (such as Materials) to be supplied to the Contractor (usually by the Principal) for inclusion in the Contract Works but the value of which is not included in the Contract Price. G8. The first part covers both the Principal and the Contractor during the Contract Period up until Practical Completion.3  The levels of insurance cover required should be set out in the Special Conditions. py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.106.5 an Paragraph (d) provides for an increase in the Contract Price due to Variations during the Contract Period.3. The basic construction insurance policy starts with insuring the Contract Works for the Contract Price at the time of acceptance of the tender or other offer. Even if a loss is not expected to reach the total level of cover required. sN ew Paragraph (a) is a post-loss allowance to cover the Cost of demolition of the damaged parts of the Contract Works in readiness for reconstruction.2  Banks. and the Contractor needs to advise the insurer accordingly. If they are not declared.3. While they are not named insureds under the policy and cannot make claims in their own right. Paragraphs (a) to (e) extend this base cover to include additional covers for specific additional items. and the disposal of the demolition materials and other debris.4  The period of construction insurance required is in two parts. The Special Conditions shall specify any such interests that are required to be noted. financiers. it is not advisable to insure for any lesser value. the party responsible for the insurance needs to increase the sum insured. NZS 3910:2013 146 COPYRIGHT © Standards New Zealand . 3. COPYRIGHT © Standards New Zealand 147 Guidelines St There may be specific items of Plant that are required to undertake the works and which. It should be noted that there are likely to be other exclusions in an insurance policy as well. Where a loss occurs which is not covered by an insurance policy. Such items of Plant may need to be insured so that replacement items can be readily obtained and the project continued. other than loss or damage from the excepted risks under 5. It may be arranged by either the Principal or the Contractor. 6 46 07 87 22 42 14 py G8. or Plant above a specified value to be insured.9 Public liability insurance Public liability insurance is for the most part required to cover the Contractor’s legal liability to third parties (that is Persons other than the Principal and the Contractor) for loss or damage to their property arising out of the performance of the Contract Works. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. other than the Contract Works or any existing property required to be insured under 8. and nothing precludes the parties from arranging insurance to a higher limit.6 (except those forces of nature that are required to be insured under 8.8.3. The exclusion of a risk from an insurance policy does not change either of the parties’ respective liabilities to each other.84.5 or G8. the cost of that loss is borne by the parties in accordance with the allocation of responsibilities set out in the Contract. although usually by the Contractor. if the policy is required to be arranged by the Contractor.1(a). there is provision to require specific critical Plant to be insured. a significant increase in insurance costs is likely. In setting the minimum limit. if lost or damaged. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or no Plant insurance at all. Instead of having a large insurance maintenance period for only relatively minor works remaining. This is a minimum amount. the parties should be realistic bearing in mind that the insurance does have to be paid for.5.ew Ze ala n d * The second part of the period of insurance covers the Contractor only while fulfilling its obligations to remedy defects.6.5 G8. it shall extend to cover loss or damage to the Principal and to the Principal’s property.4 Contractor arranged Plant insurance rig ht Typical Plant that can readily be hired may not need to be insured. NZS 3910:2013 .2. the Contractor is also not required to insure against the other risks and liabilities identified in 8. However. This would usually be the situation in the case of any other contractor or service provider coming on to Site to undertake jobbing work. Where the Defects Notification Period is greater than 12 Months. which are exclusions under nearly all construction policies. If in practice the policy period proves inadequate to achieve Final Completion.5  The Contractor is required to insure the Contract Works against loss or damage.1. da rd sN G8.6 and identified in the Special Conditions) and loss or damage for which the Contractor is not liable under 7.106. an 915670 165. could delay the works.1. following a reasonable period of time after Practical Completion. The minimum amount of insurance shall be set out in the Special Conditions. with the Contractor’s agreement the Principal may. The duration of this second part of the period of insurance should allow for the duration of the Defects Notification Period under 11.1 and any additional time required to remedy any notified defects. The duration of the insurance maintenance period impacts on the cost of insurance.5. Under 8. In the Special Conditions. be inclined to rely on the Contractor’s public liability insurance when the Contractor comes back on Site to undertake remedial work. either the policy needs to be extended prior to its expiry or further insurance needs to be effected to cover the period up to Final Completion.2. weakening and removal of support will be more important than the Forest and Rural Fires Act. sN In either case. as set out in the Special Conditions. This is considered a higher risk than general liability and is therefore often sub-limited in value within the overall policy.1  Where the Contractor is not responsible for significant design. Subcontractors as well).6 will be required. Construction insurance may cover consequential damage to the Contract Works arising from faulty design. custody or control. Schedule 9 provides for notification of any sub-limits applied by the insurer. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.6.106. Where the Principal requires the Contractor to effect professional indemnity insurance. in specifying the level of cover required.5 St G8.6. However. The Contractor needs to ensure that the limit applicable to this extension in its motor vehicle policy meets the requirements of the Special Conditions. in the case of a policy arranged by the Principal. with the converse being the case under a Contract for work in a rural area. air conditioning plant and so on). an 915670 165. it shall be extended also to cover liability caused by acts or omissions of the Principal or Subcontractors arising out of the performance of the Contract Works.6. da Liability arising from the use of the motor vehicle is a normal extension under a motor vehicle insurance policy. the more common and economical approach is to purchase an annual policy which shall be renewed each year until the expiry of the 6-year period. The exclusion for design in a construction insurance policy is likely to extend to liability resulting from all defective design. with only the faulty work itself being excluded. the Contractor needs to ensure that the Subcontractor or supplier has the same level of insurance protection required of the Contractor.6 Contractor arranged professional indemnity insurance rig ht G8. rd G8. it is unlikely that insurance of the type described in 8.5. 6 46 07 87 22 42 14 py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Typically if the Contract is for work in an urban area. irrespective of who undertakes the design. The same thing applies to the motor vehicle policies of all other Persons involved in the Contract Works whose vehicles are under the Contractor’s care. such as windows. also consider its potential liability to others arising out of faulty design. allowing either.2  Public liability insurance policies usually contain exclusions for liabilities arising out of the use of motor vehicles. Special insurance may therefore be required. vibration. both. Where sub-trades are involved and design responsibilities are passed onto them (for example the selection of items to perform specific functions. COPYRIGHT © Standards New Zealand . Where the insurance is arranged by the Principal. weakening or removal of support. the policy shall be in the names of both the Principal and the Contractor (and.Ze ala n d * The policy is required to include cover for liability arising out of vibration.3. the cover afforded need only be for liability caused by an act or omission of the Contractor arising out of the performance of the Contract Works. or all to claim.84. ew Where the public liability insurance is arranged by the Contractor. NZS 3910:2013 148 Professional indemnity insurance can be purchased as a policy specific to the project for its full duration plus the further period of 6 years required by 8. subject to 8. the Principal should. Similarly the policy shall extend to cover liability for contributions to fire-fighting expenses under the Forest and Rural Fires Act.2. 7. The Principal shall also insure any contents which it owns within these existing structures. repairs or maintenance to an existing structure. the Nominal Deductible. it shall be arranged in the names of the Principal. The insurance of existing structures is for the benefit of the Contractor and its Subcontractors. where the Contract Works are in the nature of additions. the likely consequences of an error may not be as great as where the Contractor (or its consultants) designs a large part of the Contract Works. alterations. and the contents of those structures.7. COPYRIGHT © Standards New Zealand 149 Guidelines rig ht St The Principal shall do so in two situations. This two-tier limit allows for a number of claims from various projects on the one policy but does limit the total amount of insurance available.106.2  The Principal shall disclose in the Special Conditions any extraordinary exclusions. G8. G8.2  The Principal may choose to insure the Contract Works and Materials. the policy is likely to cover some or all of the Contractor’s projects throughout the year. or endorsements provided under the policies. warranties.5  The Principal needs to advise the Contractor in the Special Conditions what insurances the Principal will provide. This clause allows for varying levels of cover to be provided for identified specialties.8. the Contractor and Subcontractors. In many cases the Principal will already have insurance policies in place and can arrange an extension of cover. 6 46 07 87 22 42 14 py The words ‘in the vicinity of an existing structure’ are necessarily vague. Where the Principal arranges the construction insurance. NZS 3910:2013 .84. but are intended to cover situations where existing structures could be at risk from the Contract Works.2  Where a Subcontractor is engaged to design a specific part of the Contract Works. the limit of amount of cover.8. G8. Any existing structures to be insured shall be identified in the Special Conditions.5 da rd G8. 915670 165.6  If the Contractor is not satisfied with the information provided in either Schedules 9 or 12. First. the Contractor may require the Principal to provide a copy of the full policy and evidence of the policy’s currency. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and the second is for the cumulative effect of a number of errors during the insurance policy duration. In these cases the Principal is in the best position to know the details of the existing structures. Prior to the commencement of the Contract Works. and other details. is for each error. This means that each of them individually can claim under the policy and the insurer generally cannot exercise its right of subrogation against any of them.6. One sum insured.Ze ala n d * The insurance is required to have two sum insured components. conditions.8 Principal arranged construction insurance an G8.1 – G8. If the Contractor has an annual professional indemnity policy. together with the replacement values. the processes or activities being carried on. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. The cover shall be for the replacement values nominated in the Special Conditions.7 Principal arranged insurances – General ew G8.7. and secondly where the Contract Works are in the vicinity of another structure which is in the care of the Principal. sN G8. the Principal shall confirm to the Contractor and Subcontractor the details of the insurances that are in place by providing Schedules 9 and 12 as appropriate. unless the Contract is varied by agreement as noted in the guideline to that clause. In the latter case.1 Ze ala n G Section 9 Variations Variations permitted Variations under the Contract are generally of three kinds: (a) Changes to the Contract Works ordered by the Engineer within the scope of the Contract. typically indicated by the words ‘shall be treated as a Variation’.3. only be binding if agreed to by both the Principal and the Contractor. 6 46 07 87 22 42 14 py The only work which can be left to be carried out after Practical Completion is work of the kind referred to in 10. even if the instruction is given before Practical Completion. there are exceptions to this general rule. G9. the Contractor may be entitled to an extension of time under 10.5 da rd Changes to the Contract’s terms and conditions are not covered by 9. However.1.1. and the parties should seek legal advice if this situation should arise. sN (c) ew (b) Instructions by the Engineer which the Contractor considers involve a Variation and are notified as such by the Contractor to the Engineer. and so will. under 9.2. G9.8. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Omitting or deferring work in order that it can be carried out by another contractor or otherwise by the Principal would require the Contractor’s agreement.1  In general terms. St an 915670 165. What might be called ‘deemed’ Variations triggered by events or circumstances which entitle the Contractor to additional payment and/or an extension of time on the basis that they are risks for which the Principal is responsible.3  The Engineer may not order additional work to be carried out after Practical Completion. the Engineer’s power to omit work by ordering a Variation can only be exercised where the work in question is no longer intended to be carried out. following the process of 9. There are many such events or circumstances defined in the General Conditions.1.3  The Principal may choose to provide a single policy or a series of policies covering all the required insurances.84. in the usual course of events.d * G8. NZS 3910:2013 150 COPYRIGHT © Standards New Zealand . the cover afforded to the Contractor and Subcontractors shall not be less than that which would have been afforded to them if they had been insured under a single construction policy. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. rig ht G9.4.106. If any additional work ordered cannot be completed before the Due Date for Completion.1.1. 3. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. G9. NZS 3910:2013 . Variations should be valued by agreement between the Contractor and the Engineer.3.3. da 915670 165. for the extra work involved and for the impact of the Variation on the Contractor’s Costs.10  Where the Schedule of Prices provides a separate item or items for overheads and profit.106.3.5 nor 9. in a manner consistent with the Contract Price. rd G9. G9.3. that price is to be used for the valuation.3 Valuation of Variations Ze ala n d * Clause 9. The object of any method of valuation is to arrive at a figure which fairly compensates the Contractor.3 is that.3.84. where the flow of particular work is interrupted. In valuing the Variation. the valuation is to be based on Net Cost.5   Where there is an applicable price (or rate) in the Schedule of Prices.3. If there is no agreement then the value shall be determined by the Engineer in accordance with those provisions. sN ew G9.3.6 applies.3.6  In other cases it may be practicable to derive a valuation from prices in the Schedule.5 to 9. For example. then other items in the Schedule of Prices will be exclusive of overheads and profit.4  In endeavouring to reach agreement.7  Where neither 9.3.3.3. St G9. and the workforce loses continuity and has to rebuild its maximum performance.6. Where the Variation gives rise to consequential Costs such as escalation.15.3 provides several methods required to be used for the valuation of Variations. COPYRIGHT © Standards New Zealand 151 Guidelines Examples of circumstances which may come within 9. these will normally include overheads and profit (other than additional time-related Costs) unless the Schedule of Prices provides separate items for overheads and profit. The basic scheme of 9. Either the Contractor or the Principal has the right to dispute the Engineer’s valuation and if necessary proceed to arbitration.8  Where rates in the Schedule of Prices or rates derived from them are used.7 are: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. rig ht (a) 6 46 07 87 22 42 14 py (b) Loss of productivity.3.8 – G9.3.2  The Contractor has the opportunity to propose a value for the Variation for consideration by the Engineer. where the Contract Price is not subject to escalation or the Contract allows only a limited recovery of escalation. The various paragraphs of the clause are intended to be read in sequence until an appropriate method for the valuation of a particular Variation is found.3.5 an G9.3.G9. This formalises the common ‘Variation price request’ process. it is not appropriate to value by the Net Cost method under 9. the Contractor and Engineer can be expected to take account of 9. the Base Value should therefore be increased in order to allow for overheads and profit.5 or 9. where possible. G9.7 if items in the Schedule of Prices are found to be applicable to the varied work under 9. Ze ala n d Where a percentage is not nominated. G9.15  Processing Costs for Variations are referred to in 9.3. then 9.3. may be related both to quantum of work and to time. Provisional Sums.3. if such Costs are included in the prices. rd sN G9.13  Where the result of a Variation is a deduction from the Contract Price.6.11 (or 9. Where the Special Conditions provide for a Working Day rate to be nominated in the tender.5 or 9. it will already include some allowance for time-related Costs. as assessed.3. The Contractor will be entitled to additional compensation to the extent that the gross value of the additional time-related Cost and profit resulting from the Variation. then a reasonable percentage may be able to be derived from the Schedule of Prices or otherwise ascertained.3. Prime Cost Sums.3.3.3. identifying those items which are time-related and those which are not.5 rig ht St Where the Base Value has been determined from the Schedule of Prices under 9. Prime Cost Sums. Provisional Sums.84. then the nominated percentage should be used in valuing the Variation.3.5 or 9. 9. The answer may be different when considering different Variations. any allowance so included shall be taken into account in assessing any further compensation which may be payable under 9. This will involve.3.3. this may also include some time-related Costs. In the case of Off-site Overheads and Profit. and contingency sums. and contingency sums.13 provides that the amount to be deducted is not to be increased by any allowance for overheads or profit.3. Some Cost items. these may be expressed as a percentage of the balance of the Contract Price after deducting Off-site Overheads and Profit.3. 152 COPYRIGHT © Standards New Zealand .12 and G9.3. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.15. These may be assessed either as a sum of money or calculated as a percentage. and to classify them as appropriate. Off-site Overheads and Profit.3. is in excess of the allowance for such time included in the Base Value under 9. Where there is no percentage nominated then reasonable percentages should be used.9 and 9.7 limits the grounds for compensation for time-related Costs. to arrive at the gross value of time-related Cost and profit. NZS 3910:2013 Clause 10.10.3. Where the Base Value has a percentage added to it under 9.10 for that Variation. da In other cases reasonable compensation is to be assessed. an 915670 165.* Where a percentage is nominated either for On-site Overheads or for Off-site Overheads and Profit.9 or 9.14). 6 46 07 87 22 42 14 py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.11 – G9. except to the extent that the Variation reduces the On-site Overheads. then the rate so nominated is to be used unless the nature of the Variation is such that it would be clearly inequitable to do so.6. such as supervision and insurance. It will be necessary to consider them in relation to the impact on them of the particular Variation. Provisional Items.14  Where the Variation entitles the Contractor to an extension of time.3.3.106. or where it would be ‘clearly inequitable’ to use the nominated percentage. as a first step. In either case. G9. The nominated rate is to be multiplied by the number of Working Days’ extension of time determined for the Variation. Provisional Items.3. ew The relevant On-site Overheads may be expressed as a percentage of the Contract Price less On-site Overheads.11 provides for additional time-related Costs to be allowed for in the valuation. or in the percentages added for overheads and profits under 9. G10. Circumstances which in a particular case might fall under (f) are unavoidable delays in the supply of Materials or Plant from overseas.17). or any other Person for whom the Principal is responsible. In every such case.9 and 9.3. G Section 10 Time for completion G10.1  This clause limits the use of Daywork to those situations where it provides an appropriate method of valuation. these words will not necessarily apply just because the delay was caused by a Person other than the Contractor or a Subcontractor. irrespective of whether an extension of time is granted.1 Commencement ew The Contract period commences on the date on which the Contractor becomes entitled to possession of the Site under 5. and traffic management plan (see 5.1. Where the completion of the Contract is delayed.G9. COPYRIGHT © Standards New Zealand 153 Guidelines rig ht St Questions can arise under (f) about the effect of the words ‘not due to the fault of the Contractor’.19) have been accepted.3. These are the areas where Daywork has traditionally been used. For example.4.84.3 Extension of time da rd G10. quality plan (see 5.1.2.3. delays arising from unforeseeable environmental objections or political decisions.5 6 46 07 87 22 42 14 py The Contractor may be entitled to an extension of time under (g) for any default by the Principal. or delays caused by unexpected vandalism notwithstanding all reasonable precautions having been taken by the Contractor. which is not a Variation. and whether the Contractor ‘is fairly entitled to an extension of time’. NZS 3910:2013 . subject to the Contractor having complied with its obligations for insurance under 8. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Under (a). which is to be treated as a Variation under 5.16. consideration needs to be given to whether the Contract insurances also require extending. Ze ala n Where the Contract does not contain Daywork rates. sN There are limits on the physical works that can commence until the safety plan (see 5.1.1  To be entitled to an extension of time.4 Daywork d * G9. a Variation includes not only Variations under 9. an 915670 165. especially where it has been agreed that these are provided with defined end dates. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. a judgement shall be made as to whether the circumstances can properly be described as ‘not due to the fault of the Contractor’. but all events or circumstances that are to be treated as Variations.5.18). then the work is to be paid for on the basis of Net Cost plus percentages to allow for On-site Overheads and Off-site Overheads and Profit.106. An example is late supply by the Principal.10. as in 9. the Contractor shall show that it is fairly entitled to the extension by reason of one of the matters referred to in 10.3.4. Ze ala n d * G10.3.11 and 9. A Practical Completion Certificate can then be issued for the completed work. although the Engineer may still do so.4 Practical Completion Certificate an G10. sN ew G10. In the case of a default by the Principal.3. The discretion vested in the Engineer to reject or allow a late claim recognises that there may be valid reasons for delay and there may be cases where the lateness of a claim does not prevent a proper investigation. This is a sensible practice and will facilitate early inspection. rig ht St Circumstances may arise where the uncompleted work is more than ‘minor’. 6 46 07 87 22 42 14 py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.3.4.1(a) or to a default by the Principal under 10. In the case of the net effect of a Variation.106. COPYRIGHT © Standards New Zealand . The purpose of requiring adequate and timely notice is to ensure that the circumstances can be adequately investigated by the Engineer and a reliable judgement made.4. and there were no special reasons such as might excuse the failure to give notice at the proper time. As with an extension of time.2 if the Principal and Contractor both agree to vary the Contract by making the completed work and the outstanding work Separable Portions.1(b) to (f) does not provide any compensation to the Contractor for its Costs of the delay. In such a case the Engineer is not bound to grant an extension.7. G10. It only serves to excuse the Contractor from its obligation to pay the Principal liquidated damages or other compensation for the Principal’s loss due to the delay.3.1(g). in the event that the parties agree to the Principal’s occupation of part or all of the Contract Works before Practical Completion is achieved (and the creation of Separable Portions to facilitate such an agreement) consideration needs to be given to the implications for the various Contract insurances. 915670 165.7  An extension of time will not entitle the Contractor to time-related Costs unless the extension is due to the net effect of a Variation under 10. Specialist advice may be required to ensure cover is maintained or established appropriately. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. but the Principal may wish to take possession and there may be advantages to both parties in treating Practical Completion as having been achieved notwithstanding the uncompleted work. This loss may be insurable by the Principal. time-related Costs may be recoverable as damages for the default.1  Minor omissions and minor defects of the kind described in this clause will not prevent Practical Completion. 9. NZS 3910:2013 154 G10. and the Engineer will act on this notice and arrange to inspect.84.3.5 da rd An extension of time under 10. This can be done under 10.2  In many cases the Contractor will notify the Engineer before the works are completed that they will be ready on a certain date.14 provide that time-related Costs may be recoverable as part of the value of the Variation. The Engineer would not be expected to refuse to grant an extension on the ground of late application unless the lateness was such as to cause real difficulty in the making of a proper assessment.2  This clause deals with the situation where the Contractor fails to give adequate and timely notice of a claim for an extension of time.3.3. the defects liability retention is required to be reduced to a sum equal to the Engineer’s assessment of the value of the work notified under 11. If a Principal wishes to deduct liquidated damages in any Payment Schedule. 6 46 07 87 22 42 14 py G11. the Principal should notify the Engineer (with a copy to the Contractor) under 12. For example. the Engineer may arrange for others to carry out the work at the Contractor’s Cost. the Defects Notification Period for building services is commonly 12 Months to allow operation through a full range of climatic conditions.5 Damages for late completion Ze ala n d * Under 10.5.106. The date is calculated by adding the Defects Notification Period to the date of Practical Completion.2. G11.5.G10.1 Defects Notification Period sN ew The Defects Notification Period establishes the date by which the Engineer may notify the Contractor under 11.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. The Engineer has no authority to waive liquidated damages without the approval of the Principal.84. The Contractor shall remedy any defects at its own expense. in the next Progress Payment Schedule.2(b) to certify.2.2. 5 Working Days after the end of the Defects Notification Period.2 yet to be completed.2 – G11.6   The Engineer may direct the Contractor to search for suspected defects during the Defects Notification Period.4 or 12.2(c) when all notified defects have been remedied and the Engineer has issued the Final Completion Certificate under 11. but not later than. The balance of the defects liability retention is due for release under 12. the release of all or part of any defects liability retention monies.2. not the Engineer.2.4  If the Contractor does not remedy the defects within the required time. G Section 11 Defects Liability G11.2.3. which the Principal may recover from the Contractor. NZS 3910:2013 . COPYRIGHT © Standards New Zealand 155 Guidelines St an 915670 165.3. Even if the Final Completion Certificate cannot be issued. rig ht G11.3. The Cost of remedying the defects may be deducted from payments due to the Contractor in subsequent Payment Schedules. but is entitled to recover the Cost of searching and any remedial work as a Variation if no defect for which the Contractor is responsible is found.1  The Engineer may notify the Contractor of defects at any time during.3. and shall promptly advise the Contractor of the Cost.1 of the defects that the Engineer requires to be remedied to allow the issue of the Final Completion Certificate under 11. or by any later date that the Engineer agrees in writing. da Upon expiry of the Defects Notification Period the Engineer is required under 12. it is the Principal. who has the right to deduct liquidated damages from the payment of any monies otherwise due to the Contractor.3.2 Remedying of defects G11. rd The default 3-Months Defects Notification Period may be amended in the Special Conditions for all or part of the Contract Works. The Contractor shall remedy any such defects within 5 Working Days of receipt of the Engineer’s notice. The Engineer shall give advance notice of his or her intention to do so.2. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 1 for the purposes of certifying Practical Completion of the Contract Works or any Separable Portion.4.4. the Contractor and the ‘warrantor’ (the Contractor or the applicable Subcontractor/supplier). In the event that Final Completion is delayed.3.20. particularly where additional work on Site under (a) or (b) above is envisaged.2. consideration should be given to extending the Contract insurances.5 Warranties Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.20.84. The Contractor has submitted all Producer Statements required by the Special Conditions. Other forms of warranty.1 – G11. Ze ala n (c) d (b) Any outstanding as-built drawings and operation and maintenance manuals required by 5.2. may be acceptable to the Engineer. G11.4 Effect of Final Completion Certificate 6 46 07 87 22 42 14 py G11. and rig ht (b) Under 12.3. the warrantor’s obligations. The form in Schedule 13 is a deed to be signed by the Principal. an 915670 165. such as standard manufacturers’ or suppliers’ warranties. The Special Conditions identify the warranties required.1 at the time of Practical Completion. having obtained the Engineer’s consent to those as-built drawings and manuals under 5.4.3. The form of warranty may be the form in Schedule 13 or as otherwise required. COPYRIGHT © Standards New Zealand . and the consequences of any failure to remedy defects under the warranty. and da rd (d) The Contractor has submitted in final form the as-built drawings and operation and maintenance manuals required by the Special Conditions. NZS 3910:2013 156 Warranties are normally provided by a Subcontractor or supplier. ew (a) (c) sN (b) The Contractor has remedied any other minor omissions or minor defects that the Engineer authorised for later completion under 10. and sometimes by the Contractor.1.8  For the purposes of 11.2(c): 10 Working Days for the Engineer to release any remaining defects liability retention monies. and deals with such matters as the scope of the warranty.2.G11. remedial work includes: Loss or damage caused by the Contractor after Practical Completion (see 5.3 Final Completion Certificate G11. They warrant the performance of the relevant part of the works.5 (a) St The Final Completion Certificate triggers the start of the following time periods: Under 12.4.3(d).2  The Engineer shall issue the Final Completion Certificate after the Defects Notification Period has expired and when the Engineer is satisfied that: The Contractor has remedied all defects that the Engineer notified under 11. G11. and the warranty period and form of warranty in each case.1  The issue of the Final Completion Certificate does not in any way affect the Contractor’s liability in respect of any work which has not been carried out by the Contractor in accordance with the Contract.3). and include an undertaking to remedy. * (a) Minor omissions and minor defects notified by the Engineer and authorised by the Engineer for later completion under 10.2.106.6.1: 1 Month for the Contractor to submit its final payment claim. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and G11. separate bespoke agreements will be required. NZS 3910:2013 .3(b)(iv)). Clauses 6. It is this date that establishes the contractual time frames for processing and payment. but it applies only to Materials purchased by the Contractor or a Subcontractor and stored by them in New Zealand at the time the Engineer certifies payment for them.2.1.2 Progress Payment Schedules Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. or rd (a) sN G12. for payment in advance for Materials which are either: (b) Not yet on Site and stored elsewhere in New Zealand (12.1. On Site but not yet incorporated into the Contract Works (12.2.1  The 12 Working Day period referred to in this clause establishes the time required for the provision of a Progress Payment Schedule for the purposes of section 22(b)(i) of the Construction Contracts Act.5. St an 915670 165.1.2.3(b)(iii)). No standard form of guarantee is included in the General Conditions. G Section 12 Payments G12.3(c)). subject to the Special Conditions.G11. G12.5 rig ht G12.2.1.2(b) requires the Engineer to record the date of service.6 Guarantees Ze ala n d * Guarantees are generally provided by third parties (such as parent companies) guaranteeing the Contractor’s performance.2. amending the Contractor’s payment claims.5. 6 46 07 87 22 42 py 14 Unlike NZS 3910:2003.2. If a Principal wishes to deduct liquidated damages. which required two separate Progress Payment Schedules for each payment claim.3  This clause sets out the information that the Contractor’s payment claims are required to contain.5).1(a) and 12.2.4 or 12. it is the date of service on the Principal that triggers the payment time frame. and the right to deduct is vested in the Principal under 10. so that where required in the Special Conditions a specific form of guarantee should be included in the tender and Contract. are a Principal’s deduction.1.106. and the parties agree to payment in advance of arrival in New Zealand.6) and will then become final unless superseded by a replacement Progress Payment Schedule if the Principal requires deductions to be made (see 12.1 provide that the Engineer receives payment claims on behalf of the Principal. Retentions are one such deduction. on the other hand. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2  In assessing and. and 12.84.2. it shall notify the Engineer and the Contractor under 12. Liquidated damages. da Schedule 14 is a form of off-site Materials agreement for use in the case of Materials not yet on Site.3. where necessary. NZS 3910:2013 provides for a Progress Payment Schedule which will be provisional for a limited period of time (see 12.2(d)).1 Contractor’s payment claims ew While the Construction Contracts Act requires the Contractor’s claim for payment to nominate the date upon which payment is due (see 12. and the Engineer shall then issue a replacement Payment Schedule.2. the Engineer should make any deductions required by the terms of the Contract (see 12. Where Materials are to be procured overseas. In particular it provides. COPYRIGHT © Standards New Zealand 157 Guidelines G12. OR (b) If a replacement Progress Payment Schedule is provided under 12.8  The time frames and deadlines for responding to the Contractor’s payment claim are all defined by the date of service of the Contractor’s claim on the Engineer.2. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1. Engineer provides Progress Payment Schedule to 12.84. copy to Principal.2.2 rd 7 Contractor. 12 If Principal notifies amendments or deductions under 12. copy to 12. G12. NZS 3910:2013 158 (a) If no replacement Progress Payment Schedule is provided under 12.106. the scheduled amount under that replacement Progress Payment Schedule.Ze ala n d * Even if the Engineer considers that no payment is due to the Contractor in respect of the Contractor’s payment claim.4: St 12. For that reason it is important that the Progress Payment Schedule identifies the date on which the payment claim was served on the Engineer.5 Engineer provides replacement Progress Payment rig ht Schedule to Contractor.2. 6 46 07 87 22 42 14 Principal shall pay the Contractor. 12. copy to Contractor.2.2.2. 17 OR if no Principal’s deductions are notified under 12.2.1 sN Deadline (Working Day) Principal.4 – G12. with reasons. That amount will be: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.6 and G12. The actions taken by the Engineer and the Principal will determine at Working Day 12 the amount that the Principal shall pay the Contractor.8 py The Working Day 12 deadline is the most crucial.5.4 deductions. the Engineer should still provide a Payment Schedule showing a nil amount and giving the reasons for that nil amount.2. copy to Principal.5 Principal may notify Engineer of any amendments or an 10 12. Otherwise the Contractor may become entitled to full payment of its claim under the provisions of the Construction Contracts Act. the scheduled amount in the Progress Payment Schedule provided under 12.2.5.6 No action is required: the original Progress Payment Schedule issued under 12. All subsequent deadlines number from this date.4: 12. so may be different from the payment due date identified in the Contractor’s payment claim.2. 915670 165. OR COPYRIGHT © Standards New Zealand .2.2. ew The time frame and deadlines are summarised below: Action to be taken and by whom Clause reference 0 Contractor serves payment claim on Engineer.2.2 ceases to be provisional.2.2. It should be noted that the date for payment will also be determined by this time frame.5. Progress Payment Schedule should be stated as ‘provisional’ in case da it is necessary for a replacement Progress Payment Schedule to be provided under 12.2. 1 – G12. the Engineer is acting as the Principal’s agent (see 6.2.3  Where the Special Conditions allow. the Engineer should deduct retentions from the amount certified for payment.5 da rd G12.3. The bond is due for release upon issue of the Final Completion Certificate.3 Retention monies sN ew G12.3. so longer periods are allowed for claim assessment and settlement of the final account. the Contractor may provide the Principal with a bond in lieu of retentions.7. COPYRIGHT © Standards New Zealand 159 Guidelines St The time frame and deadlines for the final payment claim generally mirror those for progress payment claims. as a ‘deduction required by the terms of the Contract’ (see 12. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. there should be a reduction in retentions by ‘such percentage as shall be equitable’.1(a) and 12. although the deadlines are longer. without reduction for any Separable Portions completed prior to that date.7) and not as an independent certifier.5.2  While strictly speaking retentions are a Principal’s deduction.2.2. NZS 3910:2013 . It would be desirable for the replacement Progress Payment Schedule to clearly differentiate between the amount certified as the value of the work done and the amount of the Principal’s deductions (which the Engineer may or may not agree with).2. the unpaid balance of the claimed amount in the Contractor’s payment claim as a consequence of section 23(2) of the Construction Contracts Act. Where a Separable Portion has been created as a result of the Principal taking occupancy of some part of the Contract Works under 10.2 or a replacement Progress Payment Schedule under 12.2. 915670 165.4 and G12.5 by the Working Day 12 deadline. G12.5 Final payment claim and Final Payment Schedule 6 46 07 87 22 42 14 py rig ht The 35 Working Day period referred to in 12. Such a bond shall be for the full amount of the retentions up to Practical Completion of the whole of the Contract Works.106. an G12.2.1 establishes the time required for the provision of a Final Payment Schedule for the purposes of Section 22(b)(i) of the Construction Contracts Act.5. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.84.If the Engineer fails to provide either a provisional Progress Payment Schedule under 12.2(d)). d * (c) Ze ala n In making deductions required by the Principal under 12.2. Retentions are to be calculated according to the formula or percentages nominated in the Special Conditions.3. It may take time to resolve the amounts due to settle the Contractor’s final account. 20 Ze ala n from this date.5.5.5. That amount will be: (a) If no replacement Final Payment Schedule is provided under 12. OR 6 46 07 87 22 42 14 py (b) If a replacement Final Payment Schedule is provided under 12. copy to Principal.5.3.9 rig ht The Working Day 35 deadline after service of the Contractor’s payment claim is the most crucial.5.4 No action is required: the original Final Payment Schedule issued under 12. NZS 3910:2013 160 If the Engineer fails to provide either a provisional Final Payment Schedule under 12. the scheduled amount under that replacement Final Payment Schedule. OR (c) Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.1 Final Payment Schedule should be stated as ‘provisional’ in case it is necessary for a replacement Final Payment Schedule to be provided under 12.5.5. ew OR If a Final Payment Schedule cannot be provided.5.3 by the Working Day 35 deadline.6 Engineer issues explanatory statement and certificate in 30 sN form of a Progress Payment Schedule. the scheduled amount in the Final Payment Schedule provided under 12.3. with reasons. copy to Contractor.1 12.2 deductions.2: rd 35 12. d * Deadline (Working Day) copy to Principal.1 or a replacement Progress Final Payment Schedule under 12.4.1 ceases to be provisional. The actions taken by the Engineer and the Principal will determine at Working Day 35 the amount that the Principal shall pay the Contractor.5.5. OR if no Principal’s deductions are notified under 915670 165. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2: 12.5. If Principal notifies amendments or deductions under 12.5.5 an 12.106.5.1. copy to Principal.5. 12.3.The time frame and deadlines for the final payment claim are summarised below: Action to be taken and by whom Clause reference 0 Contractor serves final payment claim on Engineer. Principal may notify Engineer of any amendments or 12. COPYRIGHT © Standards New Zealand . 12.3 Engineer provides replacement Final Payment Schedule da to Contractor. Principal shall pay the Contractor.5. the unpaid balance of the claimed amount in the Contractor’s final payment claim as a consequence of section 23(2) of the Construction Contracts Act. St 45 12.84. All subsequent deadlines number Engineer provides Final Payment Schedule to Contractor. although the work may or may not be required. The published rate measures the set base rate component of the overdraft product offered to customers and does not include any margin component added to this rate. Within 10 Working Days after that date. the Contractor’s recourse is to initiate dispute proceedings. in recognition of the general use of such items in practice. the work which it covers would typically be less well specified than an item covered by a Provisional Sum (for example. In this case. giving reasons.Ze ala n d * G12. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and likewise at Monthly intervals thereafter until the Final Payment Schedule is able to be provided.7 Interest da G12. with particular relevance to measure and value contracts.10 Provisional Items 6 46 07 87 22 42 14 py This clause provides for Provisional Items.5. In the case of a Provisional Sum. NZS 3910:2013 . the Final Payment Schedule will cease to be provisional 15 Working Days after the issue of that Schedule. and the Contractor does not agree with the scheduled amount. It is based on the Reserve Bank’s surveys of financial institutions and weighted by each surveyed institution’s share of the total value of overdraft lending subject to the business base rates offered. ew G12. If the Principal does not notify any deductions.7  If the Contractor fails to submit a final claim. COPYRIGHT © Standards New Zealand 161 Guidelines rig ht St an The Reserve Bank website states that the small to medium-sized enterprise (SME) overdraft rate is the base interest rate published monthly by the Reserve Bank of New Zealand for new overdraft loans for SME (non-farm enterprises). either through the dispute procedures in Section 13 or under the Construction Contracts Act. rd sN Where the Engineer issues a Final Payment Schedule in the absence of a claim from the Contractor. The Principal has 10 Working Days in which to notify any deductions which it requires. after which the Engineer has 5 Working Days in which to issue a replacement Final Payment Schedule.7. the Engineer shall notify the parties accordingly.84. or 10 Working Days after the issue of the replacement Final Payment Schedule.11  Prime Cost Sums  Where a Prime Cost Sum has been included in the Contract. which is both instructed and valued as a Variation. G12. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. a component the make and model of which has yet to be decided). 915670 165. which is related mostly to individual borrowers’ credit risks. the process defaults to that for progress payment claims as if the final payment claim had been served as a progress payment claim 7 Working Days prior to the date of this Progress Payment Schedule. Work under a Provisional Item may only be carried out on the instruction of the Engineer and is valued at the rates for that item in the Schedule of Prices.5 G12.5.6  If the Engineer is unable to provide a Final Payment Schedule within the required time. the Engineer may issue a certificate in the form of a Final Payment Schedule. the Principal shall make the final payment to the Contractor. It differs from a Provisional Sum. and provide a Progress Payment Schedule for what can be certified.4   The monthly interest rate for the past 12 Months and historical data is published on the Reserve Bank of New Zealand’s website.106. G12. it may be fully specified and detailed. G12.2. but is appended to a separate buyer-created tax invoice (BCTI).5 The Final Payment Schedule.2  The Commissioner of Inland Revenue has approved Contract Works for which the General Conditions are NZS 3910:2013 as an approved class of taxable supplies under section 24(2) of the Goods and Services Tax Act so as to allow recipient created invoices. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.1. da (a) rd G13.1 and G13.13.2 Engineer’s review 6 46 07 87 22 42 14 py G13.1 General A decision. the Contractor shall account for the GST content of the payment made pursuant to the Payment Schedule and BCTI in the taxable period in which the Payment Schedule/BCTI is issued. COPYRIGHT © Standards New Zealand . If the Contractor is furnishing returns to the Inland Revenue Department on the invoice basis of accounting. sN G Section 13 Disputes G13. rig ht G13.1.84. An alternative is to issue a Payment Schedule which is not in the form of a tax invoice.13 Goods and services tax ew Ze ala n d * G12.3  Neither party can unilaterally suspend or delay any dispute resolution under Section 13 due to any Adjudication proceedings. In either case. Adjudication proceedings and the dispute resolution procedure under the Contract can take place concurrently. certificate or valuation of the Engineer (other than a Progress Payment Schedule).2  Certain matters cannot be questioned or challenged and cannot be referred to dispute proceedings: 915670 165. it shall be endorsed with the words ‘Buyer-created tax invoice.1. To ensure that a Payment Schedule is in the form required to constitute a tax invoice under the Act. the Contractor shall not issue a tax invoice or subsequent adjustment note in respect of the supply of the goods and services covered by the Payment Schedule. G13. 3 Months after it has been issued by the Engineer (or 1 Month after a relevant Adjudicator’s Determination has been given). IRD approved’.1  Every dispute or difference shall be referred to the Engineer not later than 1 Month after either the provision of the Final Payment Schedule or receipt by the parties of a relevant Adjudicator’s Determination.2. 1 Month after it has been issued by the Engineer (or 1 Month after a relevant Adjudicator’s Determination has been given). NZS 3910:2013 162 G13. St (c) an (b) Any claim by the Contractor which was not included in the final payment claim.2  Either party or the Engineer may request a meeting to attempt to resolve the dispute amicably. although the parties may agree to do so. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.106. within the stated time limits.5 G13. each bearing its own costs and sharing equally the costs of the mediator. such that the Engineer shall not withhold or delay any Payment Schedule. da rd The parties may submit the matter to an agreed mediator. The mediator’s decision will become final and binding unless either party notifies the other within 10 Working Days that it rejects the mediator’s decision. or rig ht (b) Either party is dissatisfied with an Engineer’s formal decision. the Engineer may at any time give a formal decision and shall do so within 20 Working Days of a request expressly made under 13. provided that the notice requiring arbitration is given within the time limits under 13.4.5.3. and the arbitrator’s award will be final and binding on the parties. but are not bound to accept any decision that the expert may give.* G13. to an agreed expert. The prohibition on suspending work under 13. The dispute is referred to a sole arbitrator. or in addition. and is binding on the parties unless either party requests mediation under 13. although reference should be made to the Arbitration Act for possible exceptions to this. the parties and the Engineer may agree to jointly submit the dispute.4.2.4. 915670 165.5.5 Suspension during dispute The Contractor may not suspend the Contract Works on account of any dispute. provided that the notice requiring arbitration is given within the time limits under 13. and the Principal shall not withhold any payment otherwise due and payable.84.6 Award of interest An arbitrator may allow interest on any sum awarded by the arbitrator up to the date of the arbitrator’s award. The Engineer’s decision cannot be corrected or modified.106. Ze ala n d G13. unless the Engineer has instructed a suspension under other provisions of the Contract. but either does not proceed or does not settle the dispute. The parties may agree at any time to invite the mediator to give a decision on the matter in dispute. NZS 3910:2013 . or any question arising in connection with the dispute. G13. The mediator enters into without prejudice discussions with the parties in an endeavour to resolve the dispute. or ew (a) sN (b) The applicable time limit under 13.2.5 where mediation has been requested. 6 46 07 87 22 42 14 py G13.1 on account of a dispute does not affect any right that the Contractor may have to suspend work under the Construction Contracts Act. COPYRIGHT © Standards New Zealand 163 Guidelines St (a) an The Principal or the Contractor may refer a matter to arbitration where: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4  Unless the parties are awaiting a recommendation from an agreed expert. The contractual payment mechanism continues in force despite any dispute. or up to any earlier date of payment where an amount referred to arbitration has been paid before the date of the award.2.3 Mediation The parties may agree to refer any dispute to mediation within: 1 Month after the time for the Engineer to issue a formal decision under 13. G13.2. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3  Alternatively.3.4.4 Arbitration Mediation has failed to settle the matter.2. and subject to the Construction Contracts Act.3 or arbitration under 13. G Section 15 Service of Notices * G15. 164 COPYRIGHT © Standards New Zealand . If it is simply for Materials stored. • The Contractor purchases Materials and delivers them to the premises of a Subcontractor for storage until needed on Site. or while they undergo fabrication into components which will themselves be stored at the Subcontractor’s premises until needed on Site. then the value of the Materials at that point in time can be certified and paid for. There are many situations in which the Contractor may wish to receive payment in advance of delivery to the Site. 6 46 07 87 22 42 14 The description of the Materials needs to take account of any work that is likely to be performed on the Materials while at the premises and what the advance payment is for. G Schedule 14 Agreement in respect of off-site Materials ew Schedule 14 provides a form of agreement for use where the Principal pays for Materials in advance of them being delivered to the Site. It is the sender’s responsibility to retain proof of service. And it would not be applicable where an advance payment was in the nature of a deposit.84. In that situation. notices of dispute under Section 13. If there is work to be performed. This could mean that the Principal is paying in advance for work not yet undertaken. py Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. and may generally be sent to the Engineer by post.1 General Ze ala n d Notices by the Contractor to the Principal shall be in writing. There may be value in considering a two-stage payment arrangement. This means that the Materials should not be at some other Person’s premises. or notices of frustration or termination under Section 14. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. for example a cartage contractor’s yard. Some are: The Contractor or a Subcontractor purchases Materials in bulk and stores them at its depot or yard and progressively delivers them to the Site as needed.106. email or other means of electronic communication stated in the Special Conditions. For example. and each party should consider this before entering into this agreement. • Specialist items may require manufacture well in advance of delivery to Site in order to meet programme requirements. da rd sN • 915670 165. NZS 3910:2013 The premises where the Materials are held shall be under the sole control of one of the parties to this agreement. Payment in advance for Materials stored off-site prior to being incorporated into the works involves increased risk for all parties. it is only applicable where the Materials are stored at premises in New Zealand at the time of payment. Exceptions are notices of Adjudication under the Construction Contracts Act. then the description needs to reflect the final manufactured state. transfer of ownership (title) would not normally pass to the Principal until payment of the full purchase price.5 rig ht St an Parties who use Schedule 14 will need to be mindful that it does not cover all possible situations and may need modification to suit the particular circumstances. the Materials are to be sent away from the storage location to another location for further processing (such as steel to a galvaniser’s). Also.106. and transportation. NZS 3910:2013 . Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. The bailee will have no other claim on the Materials. In that situation. Clauses 16 to 18 of the agreement deal with access for the Principal. 6 46 07 87 22 42 14 py rig ht Clauses 10 to 15 of the agreement deal with the status of the party at whose premises the Materials are held as a bailee for the Principal once payment to the Contractor has been made. Where the Subcontractor owned the Materials and that ownership has been transferred to the Principal following payment to the Contractor. during the period of storage. this agreement provides for transfer of that ownership to the Principal prior to payment to the Subcontractor. The Materials may not just be placed in a general store. and a variation to the main Contract providing for any such payments to be deducted from the Contractor’s progress payments may also be required. is obliged to ensure that all of these requirements have been met.* An alternative form of agreement is required if it is intended that.5 da rd sN Where the Subcontractor owns the Materials. an option is for the Principal to make direct payment to the Subcontractor. the Principal has a right to take possession for any reason whatsoever. It is for the Principal to register the financing statement. and the Engineer.84. and the Principal’s reasonable costs of doing so are at the Contractor’s expense and could be deducted from the next Payment Schedule. There are requirements of the parties in respect of registration of a financing statement under the Personal Property Securities Act. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. and set aside from similar stock. ew Because the Principal has paid for the Materials and owns them. Where the Subcontractor is not prepared to relinquish ownership before it receives payment for the Materials. the Contractor may be entitled to a Variation. clauses 8 and 9 of the agreement require the Contractor to make prompt payment to the Subcontractor and for the Engineer to advise the Subcontractor. whether the Contractor has received payment from the Principal. on request. if work has been carried out on the Materials subsequent to them being paid for. all parties would need to enter into a modified agreement. liability for damage. prior to certifying an advance payment. If that causes additional cost or delay to the Contract Works. They shall be identified as being the Materials for the specific Contract. COPYRIGHT © Standards New Zealand 165 Guidelines St an 915670 165. the Principal will be liable to pay the additional cost of such work – subject to certification of the value by the Engineer (see clause 6). Ze ala n d Whoever is storing the Materials becomes a bailee in respect of the Materials and will be responsible for their safe storage. NZS 3910:2013 166 COPYRIGHT © Standards New Zealand . including during transit to the Site.1 and 8.84.8. Christchurch Polytechnic Institute of Technology (915670) Guidelines may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. While the construction policy may provide this cover.3. clause 19 of the agreement allows that exclusion. the construction insurance is required to cover the Contract Works and Materials anywhere in New Zealand. this should be effected in the Principal’s name only and paid for by the Contractor or Subcontractor as agreed.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. the Contractor or Subcontractor may be exposed to recovery from either the Principal or insurance company for any wrongdoing which damages the Materials. New Zealand sourced materials only.1 of the General Conditions. It is possible that the Principal may have insurance cover for its own property anywhere in New Zealand under its material damage policies. ew As most material damage policies exclude cover for damage during processing (such as fabrication or galvanising). 6 46 07 87 22 42 14 py rig ht St an 915670 165. it may however do so with certain limitations (such as maximum value. da rd sN If the Materials are to be covered by insurance other than the construction policy.Ze ala n d * Clauses 19 and 20 of the agreement deal with insurance. Under 8. If additional insurance is required to cover Materials in off-site storage or in transit. Whoever is bailee should also consider taking out a separate bailee’s insurance cover to protect them in the event of any wrongdoing while the Materials are in their care.106. or exclusion of Materials owned other than by the parties named in the policy). and this should be checked. • 9. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.GENERAL AID TO VALUATION OF VARIATIONS * Worked examples and flow chart Ze ala n d The worked examples and flow chart have been provided as a general aid to understanding the method of valuation of Variations in terms of 9.11 On-site Overheads an 915670 165.11 rig ht • 9. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.15 6 46 07 87 22 42 14 It has been agreed to take 5% of the aggregate value of additions and deductions as the reasonable Cost of processing Variations. one based on prices and rates and one based on Net Cost.3 and 9.4. with the two amounts added together with Boxes B and D of the Flow Chart before proceeding further.5 da rd • The Schedule of Prices provides separately for On-site Overheads and for Off-site Overheads and Profit.3. sN Valuation of Variations – Worked examples ew Note that a particular Variation may include some work which can be valued by prices and rates.5% 10% $100/Working Day St 9.106. or it is reasonable for new prices or rates to be derived.3.3.3. NZS 3910:2013 COPYRIGHT © Standards New Zealand 167 . The worked examples are not exhaustive but merely show the application of the provisions in the particular cases chosen as illustrations.9 9.84. then initially separate paths should be used.10 Off-site Overheads and Profit Working Day rate 7. Example 1 The Contract includes a Schedule of Prices containing prices and rates applicable to the circumstances and nature of the work. They are not intended to have contractual significance. Valuation of Variations py • As a result of the Variation there have been 5 Working Days extension of time to the Due Date for Completion of the Contract Works. • Percentages and Working Day rates are as follows: 9. and other work which may be sufficiently distinct to require valuation on the basis of Net Cost.3. If this is the case. 00 Add $ $2.00 – $396.00 2.3. the (9.00 2.00 2.13 Subtotal $2.5) (9.13 + $233.9) rd sN Total value of additions Total value of deductions Base Value an 915670 165.500.5 Box G: deductions 7.00 1.571.00 = 163.6) Schedule of Prices.000.675.00) Aggregate value of additions and 7.00 175.00 1. Applicable prices and rates are available in.033.175.00 Deduct $ 150.338.050.3.06 Total On-site and Off-site Overheads and Profit from Boxes E and G py (9.75 $3.00 (2.3. d * Box A: Quantity 10 6 20 150 15 12 35 300 Rate $ 15.06 Subtotal $2.675.106.00 600. Valuation of Technology Variations (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.00 ew Unit m3 m3 m2 kg m3 m3 m2 kg Excavation Concrete Formwork Reinforcing steel Excavation Concrete Formwork Reinforcing steel Ze ala n as follows: to the Due Date for Completion of the Contract Works Box K: Box N: 6 46 07 87 22 42 14 5 Working Days x $100 = 500.00 15.94 Difference $500.175.10) = 233.00 $163.750.00 $4.94 The Variation results in 5 Working Days extension of time rig ht Box I: $2.00 50.13 St (9.00 Add percentage for On-site Overheads to Base Value da Box E: $ 225.11) Working Day rate multiplied by 5 Working Days Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.00 = 358.Refer to the flow chart Applies.00 175.00 4.00 Add processing Costs Aggregate value of additions and deductions from Box B Processing Costs Box O: 168 Total value of Variation Add 5% x $7. Christchurch Polytechnic Institute of NZS 3910:2013 As difference is positive. add 103. or can reasonably be derived from.00 50.00 1.675.100.5% x $2.175.3.175.81 = 396.13 Add percentage for Off-site Overheads and Profit 10% x $2.00 300.94 = $103.500.00 $7.84.81 Subtotal $2. Box B: Base Value is determined from the prices and rates obtained or derived from the Schedule of Prices.3.338.175.75 COPYRIGHT © Standards New Zealand .00 (9. 000.500.00 175.106.10 Off-site Overheads and Profit 9.84.00 Total value of additions Total value of deductions Part of Base Value determined from Schedule of Prices COPYRIGHT © Standards New Zealand Add $ $ 225.3. the Schedule of Prices for this part of the work. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Box B: Part of the Base Value is determined from the prices and rates obtained or derived from the Schedule da Box A: an 915670 165. 8% 12. or can reasonably be derived (9.00 1.00 1. • The Schedule of Prices provides separately for On-site Overheads and for Off-site Overheads and Profit.3. or it is reasonable for new prices or rates to be derived for this part.00 50.00 2. • Percentages and Working Day rates are as follows: Ze ala n d * • On-site Overheads 9.500.00 6 46 07 87 22 42 14                $2.00 600. as follows: Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.00 $4.00 2.3.050.3.750.11 Working Day Rate 9.00) $2.15 No overall percentage for processing Costs has been agreed and these Costs are to be valued individually for each Variation.3. 9.100.00 (2. Applicable prices and rates are available in.5% $95/Working Day rd sN ew 9.Example 2 The Contract includes a Schedule of Prices.00 169 Valuation of Variations Unit m3 m3 m2 kg m3 m3 m2 kg rig ht Excavation Concrete Formwork Reinforcing steel Excavation Concrete Formwork Reinforcing steel St of Prices. • The balance of the work included in the Variation is to be determined on the basis of Net Cost.5) (9.00 15.00 2.3. • Prices and rates in the Schedule of Prices are applicable to the circumstances and nature of part of the work included in the Variation.5 py Quantity 10 6 20 150 15 12 35 300 Rate $ 15.175.00 Deduct $ 150.11 As a result of the Variation there have been 5 Working Days extension of time to the Due Date for Completion of the Contract Works.9 Refer to the flow chart Applies to part of work. NZS 3910:2013 .6) from.00 300.00 1.675.00 4.675.3.00 50.00 175. 561. add zero 0.11) Due Date for Completion of the Contract Works.3. Christchurch Polytechnic Institute of NZS 3910:2013 170 COPYRIGHT © Standards New Zealand .00 Add boxes B and D to determine the Base Value for the two parts of the works.78 = 6 hours x $60 = 360.00 Plant 600.00 Total Net Costs $5.3.15) Box O: Difference 1.10) 12.265.00 Base Value $7.846.826. Valuation of Technology Variations (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.106.00 Labour 1.98 As difference is negative.84.20 ew Subtotal Box G: * (9.640.3. da Box I: 915670 165.98 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.186.7) 5 Working Days x $95 = 475.20 $7.00 Subtotal $8.265.846.00 Total On-site and Off-site Overheads and Profit from Boxes E and G (9.826.086.20 = 980.Box C: Determine balance of Base Value from Net Costs Materials 2. Box E: d Net Costs Ze ala n Box D: Add percentage for On-Site Overheads to Base Value 8% x $7.5% x $7.20 + $980.78 $8.850.3.5 Add Working Day rate multiplied by 5 Working Days an Box K: 581.98 – $1.9) sN Add percentage for Off-site Overheads and Profit (9.090.00 = (9.00 $9.98 Add processing Costs. for time spent by Contractor’s staff 6 46 07 87 22 42 14 processing this Variation Total value of Variation py Box N: rig ht St $581.98 rd Subtotal The Variation results in 5 Working Days extension of time to the (9.3. and (b) There is no applicable item in the Schedule of Prices. add a reasonable percentage instead of the nominated percentage.1 (c) The Engineer orders the work to be carried out on a Daywork basis. Add processing Costs. proceed directly to Boxes I & J.84.3.5 or d A Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.13 9.3.6 9. proceed directly to Boxes I & J.3.13 Where no nominated percentage is provided in the Contract: rig ht 9. D) a reasonable percentage to cover On-Site Overheads. D).3.3.6 Determine Base Value from prices or rates obtained or derived from the Schedule of Prices to the extent that they apply. Ze ala n 9. use Net Cost method. not making any assessment of the delaying effect of the Variation on the Contract Works or part of the Contract Works.15 9. and it is not reasonable for new prices or rates to be derived.3.5 (b) The Variation satisfies 9.1(a). or 9.13 Continued on next page COPYRIGHT © Standards New Zealand 9. No addition is made where the Base Value is deemed to include full allowances for On-Site Overheads. F Where the Contract provides for a nominated percentage to cover On-Site Overheads: BB Add to the Base Value (Boxes B.12 Determine the amount of the Variation using Daywork rates set out in the Contract.3. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.3.9 07 87 22 VARIATION 42 14 9.2 CC St E (d) Daywork rates applicable to this work are set out in the Contract. Box C.3.3. in accordance with Box F. and ew (b) It is reasonable for new prices or rates to be derived from the Schedule of Prices.5 da 9.9 py Add this percentage to the Base Value (Boxes B.3.3. is clearly inequitable. 9. or of processing Costs. sN D If the Base Value of Boxes B & D combined is negative. (a) There is no Schedule of Prices. and Valuation of Variations 9.8(b) TOTAL VALUE OF 9. 9. 6 46 9.7 Determine Base Value from Net Costs to the extent not determined in Box B. (b) and (c). (a) Applicable items do not exist in the Schedule of Prices.4. rd 9. and the Variation does not result in reduced On-Site Overheads. B If the Base Value of boxes B & D combined is negative.3. No addition is made where the Base Value is deemed to include full allowance for OnSite Overheads. If the nominated percentage.3.106.* Valuation of Variations – Flow chart C AA Using Schedule of Prices Using Net Cost method Using Daywork method (a) Applicable prices or rates are available in the Schedule of Prices.4.7 an 9. 915670 165. and the Variation does not result in reduced On-Site Overheads. If not.3.13 9.4. NZS 3910:2013 171 . 9.H Where the Contract provide for a nominated percentage to cover Off-Site Overheads and Profit: Where no nominated percentage is provided in the Contract: 9. Christchurch Polytechnic Institute of NZS 3910:2013 172 9.10 Ze ala n G d * From previous page J da I The Variation results in an extension of time for completion of the Contract Works. sN Add this percentage to the Base Value (Boxes B. except.3. If the result of the multiplication is greater than the combined amount calculated for On-Site Overheads.5 L py rig ht Where the Contract provides for a rate per Working Day to cover time related On-Site Overheads. D) and On-Site Overheads (Boxes E. or of processing Costs. add the difference. that the Variation results in a reduction in On-Site Overheads. 9. Valuation of Technology Variations (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. If the result of the multiplication is less than the combined amount calculated for On-Site Overheads. is clearly inequitable. The Variation does not result in an extension of time for completion of the Contract Works as a whole. 9. 9.12 Add to the Base Value (Boxes B. in accordance with Box I. Off-Site Overheads and Profit: multiply the nominated rate by the number of Working Days by which Due Date for Completion has been extended.11 Where the Contract does not provide for a Working Day rate to cover time related On-Site Overheads. Off-Site Overheads and Profit. Off-Site Overheads and Profit: add reasonable compensation to cover time related On-Site Overheads.3. after taking into account any allowance for time related On-Site Overheads.13 rd No addition is made where the Base Value is deemed to include full allowance for Off-Site Overheads and Profit.3. F). If the nominated rate per Working Day is clearly inequitable. K St an 915670 165.11 6 46 07 87 22 42 14 Continued on next page COPYRIGHT © Standards New Zealand . Off-Site Overheads and Profit included in the assessment of Boxes B or D (Base Value) and boxes E or F and G or H (overheads and profit).3. Off-Site Overheads and Profit in Boxes E or F and G or H. add reasonable compensation to cover the time related On-Site Overheads.3. If the nominated percentage.3.3.13 No addition is made where the Base Value is deemed to include full allowance for Off-Site Overheads and Profit. add zero.106. except.10 ew 9. in accordance with Box H.8(b) 9.3. not making any assessment of the delaying effect of the Variation on the contract Works or part of the Contract Works. and to the extent. add a reasonable percentage instead of the nominated percentage. Off-Site Overheads and Profit in Boxes E or F and G or H. F) a reasonable percentage to cover Off-Site Overheads and Profit.84. D) and On-Site Overheads (Boxes E. that the Variation results in a reduction in On-Site Overheads. and to the extent. Off-Site Overheads and Profit incurred in relation to that extension. 15 O 915670 165.5 da rd Add for processing Costs the nominated percentage. an TOTAL VALUE OF 6 46 07 87 22 42 14 Valuation of Variations py rig ht St VARIATION Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. NZS 3910:2013 COPYRIGHT © Standards New Zealand 173 .3. after taking into account any allowance for time related Cost and profit included in the assessment of Boxes B or D (Base Value) and Boxes E or F and G or H (overheads and profit).3. if any.84. and if none.14 ew Where part of the Contract works is delayed by reason of the Variation for a period greater than the delay (if any) to the contract Works as whole: Add reasonable compensation for time-related Cost and profit.106. d * M sN N 9. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.From previous page Ze ala n 9. then the reasonable Cost of processing. 10 1.3.2 Certification by the Engineer notification of 108 6.4 Claims relationship to disputes 1.4.15 Commencement of Contract period da Adjudicator’s Determination. 13. 11. 10.3 12.84.1 Completion 5.13 Clearance of Site Clause 12.1 Comprehensive programme 13. Sched 4 10.7 Adjoining property. Sched 5 bonus for early completion 10. 11.6 12.4 10.6 damages for late completion 10.6 5.1.11 Contingency sums 12.21 Ambiguities 6.12 3. definition Contractor’s performance Contractor’s in lieu of retentions Principal’s Bonus for early completion 174 5.3.2 3.8 Antiquities 104 rig ht Appointment of Engineer Arbitration an in Contract St Artificial obstructions As-built drawings py Assignment definition Bond Contractor’s.2.4 GST Adjudication B final payment sN Access to works by Engineer ew Acceptance of tender Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.6 COPYRIGHT © Standards New Zealand .3 1.2 1.5 2.5 Due Date for Completion extension of time for completion Final Completion Practical Completion Certificate Practical Completion Computation of time 9. 10.14 6.2 13. Index Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 10. definition Base Value progress payments rd definition 5.7. Sched 15 1.5. 2.3 1. It does not form a part of either the General Conditions d of Contract or the Conditions of Tendering Ze ala n KEY Sched = Schedule App = Appendix CA = Contract Agreement Clause A C 106 Care of works and Site Date of. definition 1.2 1.2 10. entry upon 5.2 915670 165.4 5.1 9.106.20.4 5.2. 11.4 Accidents 5.2.1.4.INDEX * NOTE – This index is included for the convenience of users of NZS 3910. Sched 3 12.5 Advance notification in Tender Documents 2.9 10.2. Christchurch NZS 3910:2013 1.5 Conditions of Tendering 6 46 07 87 22 42 14 acceptance of tender 106 ambiguities in Tender Documents 104 interpretation 101 issue of documents 102 notification of acceptance 108 submission of tenders 105 tenderers to inform themselves 103 tender evaluation 107 Consents and approvals 5. definition Works.2 Defects Notification Period definition 6.1. 8.2 definition 1. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 definition 1.1 1.2 award of interest 13. Sched 5 arbitration 13.4 Date of Acceptance of Tender definition 1.2 Control of employees 5.7. App. 12.3.3 definition D 10.1 St completion insurance of 1.4 175 Index care of 12. 2.6 12.2 Delay in giving possession of Site 5.3 13.11 Damages for late completion 1.1 insurance by 8.5 Default 10.5 general responsibilities of 5.2 care of Contract Works and Site by Contractor’s Representative definition 1.4 to comply with Engineer’s instructions to obtain consents and approvals documents comprising CA Contractor’s Representative 5. execution of 2.4 5.1 – 8.3.1 8.1.5 claims by clearance of Site by 5.8 rig ht 10. B * Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.6 Engineer’s review 13. insurance of commencement and execution suspension of Contractor d Ze ala n ew Daywork 9. NZS 3910:2013 .5 1.8.2 general 13.1. commencement of Price.6 in public places lump sum contract 2. completion Works.1 5.1.1 – 8.6 Separate Contractors 5.7 CA. 8.1. 2.2 Definitions 1.8 Agreement.2 formal decision of Engineer 13.6 Contract Price definition 10.5.2 Contractor’s Bond in lieu of retentions 1.2 definition by Contractor 14.2 reimbursement contract rd 10.2 measure and value contract 2.6 possession of Site by COPYRIGHT © Standards New Zealand suspension during dispute 5.3 period.6 where Contractor’s responsibility 5.9 sN 10.Contract Agreement protection of Persons and property by 5.2 5.1 Works.2 – 10. labour and Plant by ambiguities in 2. and language 5.2 type of 2.1 – 8.7.4 915670 165.6 8.2 Contract Works fluctuations da 2.2 10.6 supply of Materials. law. 2. 2.4 3.4 remedying of defects 11. 2.4 5. commencement and execution Works.1 13.1 Contract period Cost 2.1 Disputes 12.15 compliance with laws by 5.2 control of employees 5.2 – 10.3 Defects liability effect of Final Completion Certificate 11. definition 1. App.8 cost reimbursement contract 2.2 by Principal 14.1.2 5.3 entire agreement CA evidence of 2.4 1. 10.3 default by 14.5 5. A Day an definition 2. Sched 3 11.2 – 2.6 Currency.1 mediation indemnity by 7.106.7.4 6 46 07 87 22 42 14 Design insurance for Contractor’s design 8. 13.11 Contractor’s Bond py 1. definition 1.84.2 setting out of Contract Works by Agreement.1. 2. 3 acceleration in lieu of 10.106.6 py Entry onto adjoining property Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. Sched 16 E 1. 8.13 definition 1.5 not to be varied 2.12.6 Guidelines 1.7 6 by Contractor 5.2 6.1 information schedules Plant 8.3.12 9.5. 6. 8.4 by Contractor.2.7 * CA d comprising Contract Ze ala n Inspection 6. 6.2 Guarantees 11. 12. bonus for 11.4 13.6 Execution of Contract 2.84.3 COPYRIGHT © Standards New Zealand .2 Evaluation of tenders 107 by Principal.2 Extension of time for completion 10.13 12.6 8.2 12.3 1.13 12.9 5.7.4 appointment of 6.2 St 1. 2. general 8.2 definition 11. 2.1 – 8.7.8 general 8.F Documents issue of Tender Documents 102 prepared by Contractor 2.2 Duties of Engineer 5.7 Goods and services tax (GST) GST Invoice an 1. 8. 6.2 6.6 1.8 prepared by Engineer or Principal 2.12.3 rig ht definition 6.4 I 6.2 Frustration of Contract Early completion.1 certification by definition Engineer’s Representative duties of failure to carry out duties inspection and testing by may instruct urgent work review of disputes by role of suspension of work by da General Conditions 915670 165.7 Evidence of Contract 2.6.8 13.3 compensation for 176 8. general 8.7 supply of supply of for compliance with laws Fencing Final Completion Certificate 2.8 definition 1.3.6.11 Drawings 5.9 5.1. Christchurch NZS 3910:2013 Execution of Contractor’s Bond 3.4 Formal decision of Engineer on dispute ew 1.2 12.8 effect of 2.6 G Employees control of 5.14 sN 10. Index Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.2 Definition rd definition Final Payment Schedule additional Final payment claim 5.4.1. Sched 16 Fluctuations in Cost 1. 7. 6.2 effect of definition Due Date for Completion GST 10.1 46 07 87 22 42 14 Engineer’s Representative 6.1 by Principal 5.3 Engineer access to works by 6.7. 6. 6. A Fossils 5.2 1.3 6.1.6 12. 7.2 Indemnity 6.4 Insurance 8.5.6. 1.8.2. 6.6 construction Excepted risks 5. Scheds 7 – 12 8.4 professional indemnity public liability Intellectual property 8.2 CA. App.1 of Principal’s Bond 3.2 1.6 12. 3 5.5 Payments Cost fluctuations 12. retention 12.3 11.2 in cost reimbursement contract definition 10.3 9.2 St Lump sum contract 1.16 in valuation of Variations in cost reimbursement contact 2.3 law.3.4 sN Labour. App.1.2 duties of Engineer 1.13 13.13 12.7 Net Cost Interpretation application 1.11 177 Index rig ht M defective 2.6 general 1. 12.5 definitions 1.4 in valuation of Variations 9. B Operation and maintenance manuals Maintenance manuals definition insurance of late supply by Principal not in accordance with Contract py Measure and value contract Measuring Orders.1.20.4 915670 165.5 Local authority contracts Materials definition 5.5 Off-site Materials agreement Late issue of documents 2.2 definition ew Obstructions. Sched 14 11.1 computation of time 1.2 P 5.5. 12. law.8 5.1.2 1.20. 11. and currency 1.11 Liquidated damages Sched 14 On-site Overheads an Licences 10.4 final payment claim 12. and language 1.16 6.4 of Conditions of Tendering 101 * 13. definition 1. 10. 10.4 Payment Schedules 12. Contractor to supply Law. 8. service of L 9. currency.5 Monies.4. and language 15.3 GST Month.1.5 12.106. Variation 5.2 8.1. 11.6 definition 1.9 Language. damages for 10. 2.4. for Prime Cost Sums 12.8 6. artificial 5.1.2 Notices. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.11 8.5 definition GST not to be withheld for disputes 1. 6. 5.4 1.4 2.84.7 13. 11.3 Payment claims 12.9 6 Patents 5.2 in valuation of Variations Nominal Deductible definition 4. Sched 14 12.1.2 advances for 2.3 Opening up works for inspection 6. NZS 3910:2013 . 2. compliance with d award by arbitrator Ze ala n Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.4 da 1.4 Mediation 13.5 9.5 2. 11.3 Final Payment Schedule 12.2 1. currency.4.7 Off-site Overheads and Profit Late supply by Principal 5.2.N Interest on unpaid monies 12.1 Notification of work for inspection or measuring O 5.2 12.5 rd Liability for defects 6.3 Nominated Subcontractor Laws.7 9.4 Occupancy by the Principal Late completion.2.12 46 07 87 22 42 14 12.1 1.2 COPYRIGHT © Standards New Zealand interest not to be withheld for disputes off-site Materials. 2 COPYRIGHT © Standards New Zealand .4 of Daywork 9. 12.2 indemnity by insurance by late supply by notification of safety hazards by Principal’s Bond to give possession of the Site an 915670 165. 10.3 d Ze ala n definition Person.1 Possession of the Site definition 12. unforeseen 9.1 6.2 5.4 Remedying of defects 11.1 to make information available to Contractor Programme Recording rd 1. 12.18 sN definition Prime Cost Sum contracts in 5. Christchurch NZS 3910:2013 2. 2.5.10 12. definition 1.10 1.5.4.10 12.progress payment claims 12. B Role of Engineer 6.3 Responsibility for Site operations 5.10 of works during suspension 6.4 5.4 Removal and making good 6.84.1.11 da compliance with laws by default by 10.5 Contractor’s 5. Index Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. Sched 9 definition 1. Sched 3.7.1 – 11. 14. 11.11 9. 6.4 Representative 7. 11.2 Principal R 1.3 1.1.7.5 Progress Payment Schedule 12.4. App.2.9 rig ht py Processing Costs of Variations definition Progress Payment Schedule definition GST Project information memoranda 178 5.4.2 Practical Completion 1.1 6.7 Provisional Items 12.7 3.9 insurance by Principal 8.106. Payment definition Final Payment Schedule 12.2 1.17.6. 12. 10.6. Sched 4 to obtain consents and approvals Producer Statement 5.4 definition Q 1.3.3.3.2 Quality plan 12. 11.2 Provisional Sum Physical conditions. B 5.2 12.9 ew * Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.2 of Persons and property 5.8.1 Retention monies 12.7 Provisional Sums 12.2 2. 9. 8. 12.2 12.5.3 5. Sched 9 Contractor to supply 5.3. 10.4 10.5 St 8.11 definition 1.2 6 46 07 87 22 42 14 S Safety 5.2.5.11. Sched 15 1.9 Public liability advances for insurance by Contractor 8. Sched 1. 10. App.4 Practical Completion Certificate 9. App.11 of costs in cost reimbursement contract 2.2 definition 2.16 5.8. 9.3.7 Safety plan 5.2 Public places insurance of 8.1. Sched 6 Progress claims 5.2 Schedule of Prices definition 1.13 5.2 Engineer’s 6.3.2. B Safety hazards 5.1 Protection Progress Payment Schedules 12. 5.7 – 8 .6 Road contracts 5. 5.9 Provisional Item retention monies 12.17 Schedule.5 Plant 5. 2 Work Temporary Works definition Waiver 6.5 10.2 issue of 102 COPYRIGHT © Standards New Zealand 179 Index *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document. App. B 1. 13. Scheds 15.3 Variation 105 Surety. for completion 6. 12.1 not in accordance with Contract suspension of 6.3 unforeseen physical conditions 9.5 3.1 – 14. Sched 13 9.3 6 46 07 87 22 42 14 Weather conditions Week.2 Separate Contractors 5. 8.5.1.14 loss or damage to 5.3.2 Workmanship and Materials 5.6 clearance of. by Contractor 5.2 valuation of 9.2 8. definition 1. 2 Specifications.1 1. 11.1.1 Setting out of Contract Works Tenderers to inform themselves 5. definition 5.6 Tender Documents definition 1. definition 1. 5. 12.2 Treasure 5.10 11.4 1.106. 11.8 5.4 orders St Principal’s T Daywork an Contractor’s Suspension of work.8 Working Day.8 Site 14.5.15 ew Time for completion Co 12.9 Works care of 5.8 W during dispute on default by the Principal on Principal’s failure to insure 8. general 4.6 possession of.5 Submission of tenders 9.7.2 definition 1. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time. 16 computation of extension of.2 9. Survey marks Valuation of Variations V da Subcontractor. Nominated 4.11 5.3.2 1.2 – 10.5 urgent 6.3 d definition 107 Ze ala n Tender evaluation * Separable Portion 10.1 915670 165.3 5.7 py rig ht 1.7 on Principal’s failure to provide bond 3.4 U responsibility for 5.1 3.13 9.2 definition Service of notices 103 Termination of Contract Testing Time 15.1 Unforeseen physical conditions care of 5.3 10.19 1.1.7.2 sN definition rd 5.5 insurance of licences for responsibility for Warranties 14.3.3. underground and above-ground 1.2 permitted Variations by Engineer advances for definition 9. definition 2. NZS 3910:2013 .8.2 Subcontractor.5 1.1.5 6.3 Traffic management plan 5.5 Utilities.2 13.84.2 Subcontracts. 10. 9. by Contractor definition Special Conditions 2. Scheds 1. unless the circumstances are covered by Part 3 of the Copyright Act 1994. Standards New Zealand will vigorously defend the copyright in this Standard. P 3910 Draft for comment No.co. Christchurch Polytechnic Institute of Technology (915670) may print this document but not more than 10% of the documents subscribed to may be held in printed form at any one time.000 for the same transaction.5 Co *Employees of Christchurch Polytechnic Institute of Technology (915670) are licensed to temporarily download this document.COPYRIGHT Ze ala n d * The copyright of this document is the property of the Standards Council. under section 131(5) (a) of the Copyright Act 1994. If there has been a flagrant breach of copyright. Private Bag 2439.000 or to imprisonment for a term not exceeding 5 years. or to imprisonment for a term not exceeding 5 years.nz. No part of this document may be reproduced by photocopying or by any other means without the prior written permission of the Chief Executive of Standards New Zealand. Those in breach under section 131(5) (b) of the Copyright Act 1994 may be liable to a fine not exceeding $150. Telephone: (04) 498 5990.84. to a fine not exceeding $10.000 for every infringing copy to which the offence relates. but not exceeding $150. Website: www.standards. Standards New Zealand may also seek additional damages from the infringing party. in addition to obtaining injunctive relief and an account of profits. the trading arm of the Standards Council. Wellington 6140. DZ 3910 Typeset by: Standards New Zealand . Fax: (04) 498 5994. NZS 3910:2013 © 2013 STANDARDS COUNCIL Approved by the Standards Council on 20 September 2013 to be a New Zealand Standard pursuant to the provisions of section 10 of the Standards Act 1988. Every person who breaches Standards New Zealand’s copyright may be liable. First published: 1 October 2013 The following references relate to this Standard: Project No. 6 46 07 87 22 42 14 py rig ht St an 915670 165.106. da rd sN ew Published by Standards New Zealand.