Construction contracts used in the construction industry in New Zealand

1. 1  Construction contracts used in the construction industry in New Zealand and elsewhere are typically drafted and published as standard forms of contracts.
2. 2  There are some clauses or provisions that are commonly found in most standard forms of construction contracts.
3. 3  Identify and explain seven of these provisions and why they are commonly included in construction contracts. Use selected contract clause as examples in your response. Do also include in your response the importance of these provisions being written in modern plain language.
4. 4  You may also see the following or other contracts as a sample of standard forms of construction contracts – available through the library or other sources.
5. 5  Present your findings in the form of a report.

Attached

Standard Terms of Construction Contract for Renovation and Small Projects [STCC-RSP 2015] published by the Construction Industry Development Board Malaysia. This contract is the first construction contract in the world to attain the ‘Clear English Standard’ Accreditation from the Plain Language Commission UK. :

Breakdown 2500-4000 words Report

1. 1  Executive summary
2. 2  Introduction
3. 3  Common provisions in construction contracts: identification and explanation of reason for 7 common provisions including the importance of using plain language
4. 4  Conclusion and recommendations
5. 5  Report presentation and formatting

7 provisions – More in-depth information found on contract attached

1 General obligations, contract administration, and variations

• The Client’s general obligations
  2 The Contractor’s general obligations
  1.3 The Contract Administrator
  1.4 Instructions, decisions, certificates, claims, and notices

1.5 Variations

• Time

2.1 Access to the site, and the date for starting and completing the work

2.2 Work programme
2.3 Work progress
2.4 Suspension of work

2.5 Adjusting the date for completing the work
2.6 Practical completion and practical completion certificate 2.7 Defects liability period and final completion certificate 2.8 Non-completion and compensation for delay

3 Financial

3.1 Price for the work
3.2 Indemnity and insurance
3.3 Performance guarantee insurance and retention sum

3.4 Advance, payment claims, and payment certificates

3.5 Contents of payment certificates
3.6 Final payment certificate and release of retention sum

4 Quality and other obligations

4.1 Contract obligations relating to quality and other obligations
4.2 Breach of contract obligations relating to quality and other obligations

4.3 Safety, health, and environment

5 Subcontracting and other contractors

5.1 Subcontracting
5.2 Obligations for subcontract work

5.3 Other contractors

6 Termination

6.1 Termination of the Contractor’s employment by the Client
6.2 Termination of the Contractor’s employment by the Contractor 6.3 Compensation following termination
6.4 Procedures following termination of the Contractor’s employment

7 Resolution of disagreements

7.1 Negotiation and mediation

7.2 Arbitration

Some questions to help

Standard forms of contract provide familiarity and can be tried and tested over time

• why they are commonly included in construction contracts
• Use selected contract clause as examples in your response
• the importance of these provisions being written in modern plain language.

Optional things to add within report

1. What is the contractor’s obligation on time to start and complete the works?

• How should the contractor progress with the work?
• What is the purpose of the contractor’s programme?
• Should the contractor’s programme be included as part of the contract documents?

  5. How could delays happen? Who caused them and who is responsible for them?

  6. How do you know when the project is completed?

  7. What happens if the project is not completed on time?