Experience Area D - Procurement

Question 1

What types of contracts are common in the construction industry?

Answer 1

NZIA SCC 2018 or NZIA SCC SF 2018 (standard construction contract/ short form)
NZS 3910
NZS 3915
NZS 3916

Others but these aren’t commonly in use

Question 2

What are the main differences between NZIA SCC 2018 and NZS 3910

Answer 2

The days to process payment claims differs to do with when the engineer/architect provides the provisional payment schedule.

SCC:
Date for payment is 17 working days after the date the payment claim is received by the Architect. (14.1.2.d)

Architect may issue a payment schedule to Principal and the Contractor with 5 working day’s of receiving the payment claim.

Principle must make amendments or deductions within 8 working days of the date the architect received the payment claim.

Architect must issue a replacement schedule within 10 working days of receipt of payment claim.

Principle must pay the scheduled amount no later than the date stated on the payment schedule.

3910:
Date for payment is 17 working days after the date of service of the payment claim

Engineer to contract must issue provisional progress payment schedule to the contractor no later than 7 working days after date of service

Principal may make amendments or deductions within 10 working days after date of service (in writing)

12 working days after date of service engineer provides a replacement progress payment schedule (if required)

The scheduled amount shall be paid to the principal within 17 working days of service of the payment claim.

Question 3

What are the main differences between NZIA SCC 2018 and NZS 3910?

Answer 3

SCC has been tailored specifically for building works, unlike NZS 3910.

SCC can only be used by an NZIA practice.

SCC is for where an Architect is engaged to administer the contract.

NZIA have put out a practice notice which considers the SCC contract ‘fairer’

NZS3910 - a ‘natural person’ needs to administer the contract, not a company.

SCC - Architect administering the contract is an ‘Architect practice’ with an ‘Architect’s representative’