NZS 3915:2005

COMMITTEE REPRESENTATION
This Standard was prepared by Technical Committee P 3915 for the Standards
Council established under the Standards Act 1988.

Peter Fehl – New Zealand Contractors’ Federation (Chair)

Rob Cameron – Property Council of New Zealand
Peter Degerholm – New Zealand Building Subcontractors’ Federation
Peter Turner – Registered Master Builders’ Federation of New Zealand

ACKNOWLEDGEMENT
Standards New Zealand gratefully acknowledges the contribution of time
and expertise from all those involved in developing this Standard.

© COPYRIGHT
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property of the Standards Council. No part of it, except the Schedules
numbered 1 to 13 and the Schedule to Conditions of Tendering, may be
reproduced by photocopying or by any other means without the prior written
approval of the Chief Executive of Standards New Zealand unless the
circumstances are covered by Part III of the Copyright Act 1994.

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AMENDMENTS

No. Date of issue Description Entered by,

and date

2
 NZS 3915:2005

NEW ZEALAND STANDARD

CONDITIONS OF CONTRACT FOR

BUILDING AND CIVIL ENGINEERING
CONSTRUCTION (where no person is
appointed to act as Engineer to the
contract)

ISBN 1-86975-027-6
NOTES
NZS 3915:2005 CONTENTS

CONTENTS PAGE

Committee representation ........................................................................ IFC

Acknowledgement .................................................................................... IFC
Copyright ................................................................................................. IFC
Referenced documents ................................................................................ 7
Foreword ..................................................................................................... 8
Review of Standards ..................................................................................... 8

GENERAL CONDITIONS OF CONTRACT

Section
1 INTERPRETATION ................................................................................. 9
1.1 Application ................................................................................... 9
1.2 Definitions .................................................................................... 9
1.3 General ...................................................................................... 12
1.4 Law, currency and language ..................................................... 12
1.5 Computation of time .................................................................. 12

2 THE CONTRACT .................................................................................. 13

2.1 Type of contract ......................................................................... 13
2.2 Lump sum contract .................................................................... 13
2.3 Measure and value contract ...................................................... 13
2.4 Cost reimbursement contract .................................................... 14
2.5 Road or term maintenance contracts ........................................ 14
2.6 Local authority contracts ........................................................... 14
2.7 Evidence of contract .................................................................. 14
2.8 Documents prepared by the Principal ....................................... 15
2.9 Documents prepared by the Contractor .................................... 16

3 PERFORMANCE BONDS ..................................................................... 17

3.1 Contractor’s bond ...................................................................... 17
3.2 Principal’s bond ......................................................................... 17

4 SUBCONTRACTS ................................................................................. 19
4.1 General ...................................................................................... 19
4.2 Nominated Subcontractors ........................................................ 19

5 GENERAL OBLIGATIONS .................................................................... 21

5.1 General responsibilities ............................................................. 21
5.2 Contractor’s representative ....................................................... 21
5.3 Control of employees ................................................................. 21
5.4 Possession of the Site ............................................................... 22
5.5 Separate contractors ................................................................. 22
5.6 Care of the works and Site ........................................................ 22
5.7 Protection of Persons and property ........................................... 23
5.8 Setting out .................................................................................. 24
5.9 Materials, labour and Plant ........................................................ 24
5.10 Programme ................................................................................ 25
5.11 Compliance with laws ................................................................ 25
5.12 Patents and royalties ................................................................. 26
5.13 Underground and above ground utilities ................................... 26
5.14 Treasure .................................................................................... 27
5.15 Clearance of Site ....................................................................... 27
5.16 Late supply by Principal ............................................................ 27
5.17 Quality management ................................................................. 27
5.18 As-built drawings, operation and maintenance manuals .......... 27

Contents continued overleaf

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CONTENTS NZS 3915:2005

6 PRINCIPAL’S REPRESENTATIVE AND

OTHER PROVISIONS ............................................................... 29
6.1 Appointment of Principal’s Representative ............................... 29
6.2 Inspection, recording, measuring and testing ........................... 29
6.3 Removal and making good ........................................................ 30
6.4 Certification ................................................................................ 30
6.5 Suspension of work ................................................................... 30
6.6 Emergency work ........................................................................ 31

7 INDEMNITY ........................................................................................... 32
7.1 Indemnity ................................................................................... 32

8 INSURANCE ......................................................................................... 33
8.1 Contractor to insure Contract Works and Materials .................. 33
8.2 Contractor to insure Contractor’s construction machinery ........ 34
8.3 Contractor to insure against public liability risks ....................... 34
8.4 Professional indemnity insurance for Contractor’s design ........ 35
8.5 Contractor’s insurance – General ............................................. 35
8.6 Principal’s option to insure Contract Works and Materials ....... 36
8.7 Principal’s option to insure public liability .................................. 37
8.8 Principal’s insurances – General ............................................... 37

9 VARIATIONS ......................................................................................... 38
9.1 Variations permitted ................................................................... 38
9.2 Variation orders ......................................................................... 38
9.3 Valuation of Variations .............................................................. 39
9.4 Daywork ..................................................................................... 41
9.5 Unforeseen physical conditions ................................................ 41

10 TIME FOR COMPLETION .................................................................... 42

10.1 Commencement ........................................................................ 42
10.2 Due Date for Completion ........................................................... 42
10.3 Extension of time ....................................................................... 42
10.4 Certificate of Practical Completion ............................................ 43
10.5 Damages for late completion ..................................................... 44
10.6 Bonus for early completion ........................................................ 45
10.7 Occupancy by the Principal ....................................................... 45

11 DEFECTS LIABILITY ............................................................................ 46

11.1 Period of Defects Liability .......................................................... 46
11.2 Defects liability ........................................................................... 46
11.3 Defects Liability Certificate ........................................................ 46
11.4 Effect of Defects Liability Certificate .......................................... 47
11.5 Guarantees ................................................................................ 47

12 PAYMENTS ........................................................................................... 48
12.1 Contractor’s payment claims ..................................................... 48
12.2 Progress Payment Schedules ................................................... 48
12.3 Retention monies ....................................................................... 49
12.4 Final payment claim ................................................................... 50
12.5 Final Payment Schedule ........................................................... 50
12.6 Effect of Final Payment Schedule ............................................. 51
12.7 Interest ....................................................................................... 51
12.8 Cost fluctuations ........................................................................ 52
12.9 Provisional Sums ....................................................................... 52
12.10 Prime Cost Sums ....................................................................... 52
12.11 Contingency sums ..................................................................... 53
12.12 Goods and services tax ............................................................. 53

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NZS 3915:2005 CONTENTS

13 DISPUTES ............................................................................................. 54
13.1 General ...................................................................................... 54
13.2 Appointment and determination of Expert ................................. 54
13.3 Mediation ................................................................................... 54
13.4 Arbitration .................................................................................. 55
13.5 Suspension during dispute ........................................................ 56
13.6 Award of interest ........................................................................ 56

14 FRUSTRATION AND DEFAULT ........................................................... 57

14.1 Frustration .................................................................................. 57
14.2 Default by the Contractor .......................................................... 57
14.3 Default by the Principal ............................................................. 58

15 SERVICE OF NOTICES ........................................................................ 60

15.1 General ...................................................................................... 60

Appendix

A COST FLUCTUATION ADJUSTMENT BY INDEXATION .................... 61

B CONSTRUCTION CONTRACTS IN PUBLIC ROADS ......................... 62
B1 Interpretation ............................................................................. 62
B2 Principal’s powers and responsibilities ...................................... 62
B3 Time for completion ................................................................... 62
C TERM MAINTENANCE CONTRACTS (INCLUDING ROAD
MAINTENANCE CONTRACTS) ............................................................ 63
C1 Interpretation ............................................................................. 63
C2 General obligations .................................................................... 63
C3 Underground and above ground utilities ................................... 63
C4 Principal’s powers and responsibilities ...................................... 63
C5 Time for completion ................................................................... 64
C6 Defects liability ........................................................................... 65
C7 Payment ..................................................................................... 67
D OBTAINING OF LICENCES BY THE CONTRACTOR ......................... 68

SCHEDULES TO GENERAL CONDITIONS OF CONTRACT

First Schedule Special Conditions of contract .............................. 70

Part A Specific conditions of contract .............................. 70
Part B Other conditions of contact ................................... 80
Second Schedule Contract agreement .............................................. 81
Third Schedule Form of Contractor’s performance bond ............... 82
Fourth Schedule Form of Principal’s bond ....................................... 84
Fifth Schedule Form of Contractor’s bond in lieu of retentions ..... 86
Sixth Schedule Form of producer statement –
Construction .......................................................... 88
Seventh Schedule Information as to Contract Works insurance ........ 89
Eighth Schedule Information as to public liability insurance ............ 91
Ninth Schedule Information as to the Contractor’s
construction machinery insurance ........................ 93
Tenth Schedule Information as to the Contractor’s
motor vehicle insurance ........................................ 94
Eleventh Schedule Information as to Contractor’s
professional indemnity insurance ......................... 95
Twelfth Schedule Provisional Certificate of Practical
Completion and certificate of Practical
Completion ............................................................ 96
Thirteenth Schedule Provisional Defects Liability Certificate
and Defects Liability Certificate ............................ 97 ➤

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CONTENTS NZS 3915:2005

CONDITIONS OF TENDERING ................................................................. 98

101 Interpretation ............................................................................. 98

102 Issues of documents .................................................................. 98
103 Tenderers to inform themselves ................................................ 98
104 Ambiguities in tender documents .............................................. 98
105 Submission of tenders ............................................................... 99
106 Acceptance of tender ................................................................. 99
107 Notification of acceptance ....................................................... 100

SCHEDULE TO CONDITIONS OF TENDERING .................................... 101

GUIDELINES

Section

G1 Interpretation ....................................................................................... 103

G1.2 Definitions .............................................................................. 103
G5 General Obligations ............................................................................. 103
G5.10 Programme ............................................................................ 103
G6 Principal’s Representative and other provisions ................................. 104
G6.1 Appointment of Principal’s Representative ........................... 104
G6.2 Inspection, recording, measuring and testing ....................... 104
G7 Indemnity ............................................................................................. 104
G8 Insurance ............................................................................................. 104
G8.1 Contractor to insure Contract Works and Materials .............. 104
G8.4 Professional indemnity insurance for Contractor’s design .... 105
G8.5 Contractor’s insurance – General ......................................... 105
G8.6 Principal’s option to insure Contract Works and
Materials ................................................................................ 106
G8.8 Principal’s insurances – General ........................................... 106
G9 Variations ............................................................................................. 106
G9.1 Variations permitted .............................................................. 106
G9.3 Valuation of variations ........................................................... 106
G9.4 Daywork ................................................................................. 108
G10 Time for completion ............................................................... 108
G10.3 Extension of time ................................................................... 108
G10.4 Certificate of Practical Completion ........................................ 109
G11 Defects Liability ..................................................................... 109
G11.1 Period of Defects Liability ...................................................... 109
G12 Payments ............................................................................... 110
G12.1 Contractor’s payment claims ................................................. 110
G12.5 Final Payment Schedule ....................................................... 110
G12.12 Goods and services tax ......................................................... 110
G13 Disputes ................................................................................. 110
G13.1 General .................................................................................. 110
G13.2 Appointment and determination of Expert ............................. 111
Conditions of tendering ............................................................................. 111
G106 Acceptance of tender ............................................................ 111

GENERAL AID TO VALUATION OF VARIATIONS ............................... 112

Worked examples and flow chart ............................................................. 112

Valuation of Variations – Worked examples ............................................ 113

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NZS 3915:2005 REFERENCED DOCUMENTS

REFERENCED DOCUMENTS

In this Standard reference is made to the following:

NEW ZEALAND STANDARDS

NZS 3910:1998 Conditions of contract for building and civil engineering construction
NZS 3910:2003 Conditions of contract for building and civil engineering construction
NZS 3915:2000 Conditions of contract for building and civil engineering construction
(where no person is appointed to act as Engineer to the contract)

NEW ZEALAND LEGISLATION

Arbitration Act 1996

Building Act 2004
Cadastral Survey Act 2002
Construction Contracts Act 2002
Construction Contracts Regulations 2003
Goods and Services Tax Act 1985

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FOREWORD NZS 3915:2005

FOREWORD
NZS 3915:2005 Conditions of contract for building and civil engineering construction (where no
person is appointed to act as Engineer to the contract) was developed to provide a standard contract
form for the situation where the client (Principal) administers the contract directly.

NZS 3915:2005 was based on NZS 3910:1998 Conditions of contract for building and civil
engineering construction and altered to accommodate not having an “Engineer” administer the
contract.

In 2003, Standards New Zealand published a revision of NZS 3910. NZS 3910:2003 included
important changes to Sections 12 and 13 to make it compatible with the Construction Contracts Act
2002. Changes were made to the insurance provisions to more closely reflect the realities of the
insurance market in the light of advice from the insurance industry. Changes were also made to
provide for the Contractor having design responsibility, or being required to obtain pre-construction
consent documentation under the Building Act. There were also some other minor changes to the
document.

NZS 3915:2005 has been revised with the objective of aligning its intent and content with
NZS 3910:2003, while still providing for the client (Principal) to administer the contract directly
without an engineer, architect, surveyor or the like acting as the “Engineer” carrying out the
administrative role as provided for in NZS 3910.

REVIEW OF STANDARDS

Suggestions for improvement of this Standard will be welcomed. They should be sent to the Chief
Executive, Standards New Zealand, Private Bag 2439, Wellington.

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NZS 3915:2005 SECTION 1 – INTERPRETATION
FOREWORD

NEW ZEALAND STANDARD

CONDITIONS OF CONTRACT FOR BUILDING AND CIVIL
ENGINEERING CONSTRUCTION (where no person is
appointed to act as Engineer to the contract)

GENERAL CONDITIONS OF CONTRACT

SECTION 1 – INTERPRETATION

1.1 Application

1.1.1 This Section shall apply to the Contract Documents except where inconsistent with the context.

1.2 Definitions

ADJUDICATION means adjudication under the Construction Contracts Act 2002.

ADJUDICATOR’S DETERMINATION means an adjudicator’s determination under the Construction

Contracts Act 2002.

BASE VALUE has the meaning assigned to it in 9.3.

CONTRACT AGREEMENT means the written agreement for the fulfilment of the contract signed by the
Principal and the Contractor.

CONTRACT DOCUMENTS means the Contract Agreement and the documents referred to in and forming
part of the Contract Agreement or the documents, which constitute the contract under 2.7.1.

CONTRACT PRICE means the sum named in the Contract Documents as payable for the completion of the
Contract Works subject to such adjustments as are provided for in the Contract Documents.

CONTRACT WORKS means the works including Temporary Works to be executed in accordance with the
contract.

CONTRACTOR means the Person whose tender has been accepted by the Principal or the Person who has
been so named in the Contract Documents, and includes the executors, administrators, and successors of
the Contractor.

COST includes expense or loss and overhead cost whether on or off the Site.

DATE OF ACCEPTANCE OF TENDER means the date on which the successful tenderer is notified in
writing that its tender is accepted.

DAYS when used to express a period of time means Working Days.

DAYWORK means work to which 9.4 applies.

DEFECTS LIABILITY CERTIFICATE means a certificate issued under 11.3.

DRAWINGS means the Drawings included in the Contract Documents together with any additions to, or
modification of such Drawings approved and notified to the Contractor and such other Drawings as may from
time to time be supplied by the Principal to the Contractor for the purpose of the contract. Drawings also
include those that have been prepared by, or on behalf of the Contractor, and which have fulfilled any
requirement in the Contract Documents for preparation and review of such Drawings prior to their issue for
construction.

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NZS 3915:2005 Conditions of contract for building and civil
engineering construction (where no person is appointed to act as
engineer to the contract)

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