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NZ Standard 3910:2003 - Conditions of contract for building and civil engineering construction

Background to the revision of NZS 3910:2003

The following information provides a brief overview of the project itself, and committee responsibilities.

NZS 3910 Conditions of contract for building and civil engineering construction was last published in 2003 and is used as the foundation for many New Zealand contracts in the building, engineering construction and roading sectors.  This Standard provides essential commercial provisions aligned with the requirements under the Construction Contracts Act that may be used for all types of engineering and building work with a variety of administrative arrangements, in accordance with a design provided by an engineer.

Enquiries and comments received from the sector in the previous 2 years suggest that:
• NZS 3910 is frequently being used with a number of special conditions; and
• There is also a lack of clarity around some aspects of the Standard.

As a result of this feedback, the Engineering Leadership Forum (ELF) initiated an analysis of NZS 3910:2003 to determine which areas of the Standard were in need of review.  A working group of ELF members produced a summary document which listed all clauses that possibly required review and in some cases suggested proposed wording. 

In March 2011 Standards New Zealand constituted a Scoping Committee who were invited to review and discuss the ELF document and establish if a revision was required and if so, which portions of the Standard should be revised.

The Scoping Committee agreed a review of NZS 3910:2003 was required, and building on the ELF document, identified the  key themes they felt required a review.   The Committee discussed each theme and made a recommendation as to whether it required change, required further discussion or did not require changing. 

The outcome from the Scoping workshop was a Report which summarised the committees’ recommendations for the proposed project and this was used as the basis for a proposal which was circulated around the sector in mid 2011. 
Scope
Based on the findings from the Scoping Workshop a revision of NZS 3910:2003 will include the following:

• A rationale regarding special conditions: sometimes these are appropriate as the Standard can only go so far to accommodate every likely scenario
• Allowance for changing legislation, including the GST Act, Building Act, and the Construction Contracts Act
• Provide a clear identification of risk allocation
• Ensure fair treatment for the Engineer, Contractor and the Principal
• Clearer insurance requirements
Committee
Committee members contribute valuable knowledge, experience, research and time to develop Standards, which result in wide-ranging benefits throughout New Zealand.

We believe that committee members also gain a lot from participating. They value the opportunity to contribute to the content of a Standard, while ensuring their sector and interests are represented. Committee members also enhance their professional responsibility, and gain from being exposed to expert knowledge and the opportunity to build contacts.
Alternatives to committee participation
If your Organisation is unable to contribute by putting forward a representative committee member there are other alternatives, please advise us if you would like to contribute via one of the below altenatives:
1. Observers
Observers are non voting members of the committee; they do not usually attend committee meetings but are given access to the meeting documentation and draft as it develops and are can provide feedback.
As observers do not attend meetings, this option reduces costs for a nominating organisation.

2. Public comment
In the second half of the project the Committee Draft will be circulated around the sector providing the opportunity for comment, this is the public comment stage, the committee will consider all public comments received.

Committee responsibilities
A committee will be established with the responsibility of Revision the Standard. Committee participation provides the opportunity to develop nationally-accepted Standards through a process of draft preparation, public consultation and committee consensus.

Committee members develop Standards by discussing and agreeing content through meetings, conference calls, working groups, or by working with individuals on specific sections of the document.

Committees work within a Terms of Reference, to be finalised at the first meeting. A draft of these will be available for the committee once selected. 

The committee will have representation from across the Building, regulators and other key stakeholders as required. We will be inviting nominations from the following organisations:

• Arbitrators and mediators Institute of New Zealand Inc • Local Government New Zealand
• Association of Consulting Engineers New Zealand (ACENZ) • New Zealand Contractors' Federation
• Auckland Council • New Zealand Institute of Architects (NZIA)
• BCITO • New Zealand Institute of Building Surveyors Inc
• BRANZ • New Zealand Institute Quality of Surveyors
• Building Service Contractors of New Zealand Inc • New Zealand Institute of Surveyors
• Certified Builders Association of New Zealand Inc • New Zealand Law Society
• Chorus/Telecom • New Zealand Transport Agency
• DBH • Property Council of New Zealand
• InfraTrain New Zealand • Registered Master Builders Federation of NZS Inc
• Ingenium • Society of Construction Law
• IPENZ • Specialist Trade Contractors Federation
• Insurance Council of New Zealand • Transpower
• Kiwirail • Water New Zealand

Committees that develop Standards are selected based on their expertise and experience, and their ability to represent the broader interests of their nominating organisation. 

All committee members are encouraged to focus on the broader sector or national view. Standards are developed for the benefit all New Zealanders, to improve the health and safety of users and consumers, the quality of goods and services, to protect the environment, promote best practice in industry, and accommodate new and emerging technologies.

Therefore, in considering which representatives to nominate for this process, technical expertise and experience should be considered alongside their suitability in representing the interests of their sector rather than their own personal interests.
Committee participation
To ensure the success of the project, committee members are encouraged to:
• Prepare prior to committee meetings;
• Attend all meetings. Typically there are four one day meetings and one two-day meeting to review the feedback received during the public comment period;
• Consult with nominating organisations and other parties they represent; and
• Contribute to the work of the committee – this may include drafting, or reviewing, sections of the Standard.


Committee expenses
Standards NZ is a not-for-profit, self funded organisation. The cost of developing Standards is spread widely amongst those who sponsor the Standard to be developed, contribute ‘in kind’ as committee members/nominating organisations, purchase Standards, pay membership fees, and attend seminars.  All contributions are essential. They enable the development of Standards to continue. We therefore look to nominating organisations or employers to take care of committee members’ cost of travel, which will typically be to Wellington for meetings, accommodation and time expended preparing or attending meetings.

Contact for further information or clarification:

Sonia van Ree
Project Manager 
sonia.vanree@standards.co.nz

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P3910 Nomination Org Form.pdf84.46 KB