New construction standard form already hijacked

In 2013, NZ Standards decided to update the 2003 version of NZS 3910, the main standard form building contract used in NZ. One of the reasons for the update was that extensive amendments were being made to the general conditions in many construction projects. NZ Standards incorporated many of the widely-used amendments in the new NZS 3910:2013, provided that such terms fairly allocated the risk between the contractor and the principal.

However, just a few months after its release, we are now seeing further extensive amendments being made to NZS 3910:2013.

 We have heard of cases where there are 80 pages of special conditions. Many of the amendments are drafted to create unduly onerous obligations on one party, usually the contractor.

As has been seen on construction projects worldwide, when risks are not allocated fairly or appropriately, construction projects are highly likely to suffer from disputes, delays and increased costs.

[this post was written by Mary Haggie]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s