Sigh of relief on retentions

Under the Construction Contracts Amendment Act 2015, retention money withheld under commercial construction contracts will be required to be held on trust. The purpose is to better protect retention money owed to contractors and subcontractors in the event of a business failure. Kensington Swan, identified a flaw in the transitional provisions of the Amendment Act,…

Consultation opens on new earthquake-prone buildings framework

MBIE has opened public consultation on the new earthquake-prone building (EPB) regulations and methodology. This is to inform the Building (Earthquake-Prone Buildings) Amendment Act, which will come into effect in 2017. Consultation will run until 15 December 2016. Submissions have been requested on both the proposed EPB methodology, and regulations relating to: The definition of…

Consultants, welcome to the CCA

Today the second tranche of changes to the Construction Contracts Act 2002 (CCA) come into effect. Any contracts for design, engineering or quantity surveying work entered into (or renewed) from today will be subject to the CCA. This means that those providing design, engineering or quantity surveying work will have the rights and obligations imposed…

New framework for managing earthquake-prone buildings

The new Building (Earthquake-prone Buildings) Amendment Act has created a new framework for managing earthquake prone buildings (EPBs). The key difference is that the system for the strengthening of EPBs now prioritises particular geographic areas, categorising NZ into low, medium and high risk. National timeframes for strengthening EPBs are set relative to the location and…

Adjudicators: No, you can’t just appoint anyone you want

A recent High Court decision provides a helpful reminder that the Construction Contracts Act must be followed when appointing an adjudicator. In New Zealand Fire Sprinkler Protection Limited v AFS Total Fire Protection Limited [2016] NZHC 690, the defendants (AFS) had unilaterally appointed an adjudicator following apparent settlement of a dispute involving payment for services.…