Section D Flashcards
What are some different construction contracts?
NZIA SCC 2024 Standard Construction Contract
NZIA NBC (National Building Contract) - the architect isn’t contractually involved in the administration or control of the contract
NZS3910:2023 (Conditions of Contract for Building and civil engineering construction) - revision 4
NZS3902:2004 Housing, alterations and small buildings contract
- shouldn’t be used as labour-only contract
- or where a homeowner engaged a professional to design the work and administer the contract
NZS3915 (As NZS3910, but no person appointed to act as engineer to the contract)
NZS 3916 is similar to NZS 3910, although tailored for a design-and-build context.
NZIA SCC vs SF Comparison
SCC full form suit project of any size and complexity, with wide range of risks.
Short forms intended for alterations or simple new building work, with a low value and short contract period.
What is the NZIA SCC for?
Contract between Principal and Contractor for construction of Contract Works of any size or complexity, where the ARCHITECT ADMINISTERS the contract on behalf of the Principal.
What is the NZIA SCC SF intended for?
Alterations or new building work of simple nature with relatively low value and completed within short contract period.
What is National Building Contract (General and SF) for?
Provided by the NZIA when the architect isn’t contractually involved in the administration or control of the contracts. There is provision for Architect to act as Principals agent.
General - larger projects
Short form - small works projects.
When does an architect (appointed as contract administrator) act as an agent (not on behalf of the principal) in construction contracts?
Architect acts as an agents of the Principal in the administration of Payment Claims and Payment Schedules.
NZIA SCC vs NZS 3910 Comparison?
1
- NZIA’s SCC has an Architect (which may be a firm) in the role of administering the Contract impartially.
- NZS3910:2023 has a Contract Administrator and an Independent Certifier in the “middle”. They must be individuals, and they can be the same person.
2
NZIA SCC 2018 This document may only be used by an NZIA Practice currently holding an annual Architects Document Set Licence.
3
- NZS3910: Engineer (contract administrator) shall accept Site Specific Safety Plan prepared by the Contractor. (Under Section 5: General obligations - same about Quality plan, Traffic Management plan)
- SCC 2018 (Special Conditions)
Within 5 Working Days of receiving the safety plan and before any part of the Contract Works commences on- site, the Architect must review the safety plan for manifest errors or omissions that an Architect may reasonably be expected to find or know. The Architect must bring to the attention of the Contractor in writing any such errors or omissions.
4
Terms for payment claims consideration
SCC 2018:
5 working days to issue provisional Payment Schedule for Architect
8 working days for the Principal for amendments and deductions
10 working days to issue Payment Schedule to the Contractor
Contractor shall be paid no later than the date stated on the Payment Schedule
3910:
7 working days to issue Progress Payment Schedule for Contract Administrator
10 working days for the Principal for amendments and deductions from the sum certified by Engineer
12 working days to issue Payment Schedule to the Contractor
Contractor shall be paid within 17 days after the date the payment claim was served
What are the benefits of the NZIA Conditions of Contract?
- Collaboration: The NZIA and Registered Master Builders work together to develop the SCC.
- Multiple versions: There are different versions of the SCC for different types of projects, including the NZIA SCC 2018 for any size or complexity, and the NZIA SCC Short Form 2018 for smaller or less complex projects.
- Free working copies: Practice members of the NZIA can get free working copies of the SCC and services agreements
What do you do if Client decides not to use NZIA Conditions of Contract?
- Consider seeking legal advice and professional indemnity insurers advice
- Advise the client in writing of any professional risk limitations, quality assurance limitations and definition of the Architects role
What is a Prime Cost Sum?
RICS definition: A sum of money included in a unit rate to be expended on materials or goods from suppliers (e.g. ceramic wall tiles at £36.00/m or door furniture at £75.00/door).
It is a supply only rate for materials or goods where the precise quality of those materials and goods are unknown. PC Sums exclude all costs associated with fixing or installation.
Costs are given by the end client to the main contractor and their supply chain upfront in the tender process to make allowances for using specific materials and nominated subcontractors
What is novation?
A form of design build contract. In the context of the Agreement for Architects Services “Novation” means replacing one party to the agreement (the Client) with another party (the Builder),
Design and documentation often limited to identifying the clients needs, intent, quality and price. Contractor takes over the consultant agreements & responsibility to deliver project.
What is novation?
Novation occurs when the contract between the architect and the principal is extinguished and is replaced by a contract with a new client (the building contractor)
