Notable changes to NZS3910:2023 for civil and commercial construction contracts

Those involved with civil and commercial construction contracts will see the updated NZS3910:2023 General Conditions of Contract appearing in tenders coming to market.

The new version is an evolution rather than a revolution of the previous 2013 version, so experience should find it easy to get to grips with.

These are some of the notable changes:

The introduction of a Target Price option with “pain’ and “gain” sharing in proportions set and agreed as a new Schedule 1 variable. We anticipate this being an attractive pricing mechanism for Principals. The devil will be in the detail when it comes to defining the unders and overs.
The role of the Engineer has been replaced by a Contract Administrator and an Independent Certifier.
- Contract Administrator – Issues Site Instructions to the Contractor.
- Independent Certifier – Receives and values Payment Claims, decides Contractor’s entitlement to Variations and EoT claims, and makes Formal Decisions.
- BUT any practical difference may be undermined by the fact that both roles may be the same person.

There is provision to specify what (if any) aspects of design the contractor will be responsible for, with a prompt in Schedule 1 to match the new general condition.
Fluctuations now apply by default unless specifically excluded in Schedule 1.
The three-month time limit for giving notice of arbitration after the Engineer’s decision is gone.

We will be providing “Principals’ Guide Notes” and “Contractors’ Guide Notes” to NZS3910:2023. Though these will not be exhaustive, they will serve as a starting guide for principals putting together their first 3910:2023 based RFP and contractors wondering what areas to consider for tagging.

If you want a copy of either guide, please email richardk@st.co.nz.