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Design And Construct Contract for New Zealand

Design And Construct Contract Template for New Zealand

A comprehensive contract template designed for use in New Zealand construction projects where the contractor takes responsibility for both design and construction works. This document aligns with New Zealand construction law, including the Construction Contracts Act 2002 and Building Act 2004, providing a robust framework for managing design and construction obligations, risk allocation, payment provisions, and dispute resolution procedures. It incorporates specific provisions for New Zealand building compliance requirements, consenting processes, and local industry standards while ensuring fair and balanced risk distribution between parties.

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Design And Construct Contract

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What is a Design And Construct Contract?

The Design And Construct Contract is intended for construction projects in New Zealand where a single contractor is responsible for both design and construction elements. This procurement method is particularly suitable for projects where the principal wants a single point of responsibility and integrated design and construction solutions. The document incorporates requirements from key New Zealand legislation including the Construction Contracts Act 2002, Building Act 2004, and Health and Safety at Work Act 2015. It provides comprehensive coverage of design development, construction methodology, risk allocation, quality assurance, and project delivery requirements. The contract is structured to facilitate efficient project delivery while ensuring compliance with New Zealand building standards and regulations.

What sections should be included in a Design And Construct Contract?

1. Parties: Identifies and provides details of the principal and contractor

2. Background: Sets out the context of the agreement and project overview

3. Definitions and Interpretation: Defines key terms and establishes rules for interpreting the contract

4. Contract Formation and Documents: Lists contract documents and their order of precedence

5. Design Obligations: Details contractor's design responsibilities, standards, and approval processes

6. Construction Obligations: Specifies construction requirements, standards, and methodologies

7. Time and Progress: Covers program requirements, completion dates, and delay provisions

8. Variations: Procedures for changes to design or construction scope

9. Payment: Payment terms, valuation methods, and payment claim procedures

10. Quality Assurance: Quality management requirements and inspection procedures

11. Defects: Defects liability period and rectification procedures

12. Insurance and Indemnities: Required insurances and indemnification obligations

13. Security: Performance security requirements and release conditions

14. Suspension and Termination: Rights and procedures for suspension and termination

15. Dispute Resolution: Process for resolving disputes between parties

16. General Provisions: Standard contract clauses including notices, governing law, and assignment

What sections are optional to include in a Design And Construct Contract?

1. Early Works: Used when design or construction work needs to commence before full contract execution

2. Novation: Include when existing design consultants are to be novated to the contractor

3. Building Information Modelling: Required for projects utilizing BIM processes

4. Environmental Requirements: For projects with significant environmental considerations or requirements

5. Indigenous Participation: Include for projects with Māori participation requirements or cultural considerations

6. Interface Management: For projects involving multiple contractors or adjacent works

7. Value Engineering: When specific provisions for cost optimization are required

8. Commissioning and Handover: For complex projects requiring detailed commissioning procedures

What schedules should be included in a Design And Construct Contract?

1. Schedule 1 - Contract Particulars: Key project details, dates, amounts, and contact information

2. Schedule 2 - Scope of Works: Detailed description of design and construction scope

3. Schedule 3 - Principal's Project Requirements: Detailed technical and functional requirements

4. Schedule 4 - Design Documents: Initial design documents and development requirements

5. Schedule 5 - Site Information: Site conditions, access, and related information

6. Schedule 6 - Program Requirements: Detailed timing and sequencing requirements

7. Schedule 7 - Payment Schedule: Payment breakdown, milestones, and rates

8. Schedule 8 - Forms of Security: Required forms for bank guarantees and other security

9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and minimum coverage

10. Schedule 10 - Quality Management Requirements: Quality systems and testing requirements

11. Appendix A - Site Plans and Drawings: Site layout, boundaries, and relevant drawings

12. Appendix B - Authority Requirements: Relevant permits, consents, and authority conditions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions


































































Clauses














































Relevant Industries

Commercial Construction

Residential Development

Infrastructure

Industrial Construction

Healthcare Facilities

Education Facilities

Retail Development

Hospitality

Sports and Recreation

Transportation

Energy and Utilities

Mining and Resources

Relevant Teams

Legal

Commercial

Procurement

Project Management

Construction

Design

Risk and Compliance

Operations

Finance

Technical Services

Contract Administration

Quality Assurance

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Quantity Surveyor

Project Director

Commercial Manager

Design Manager

Site Manager

Legal Counsel

Risk Manager

Procurement Manager

Chief Executive Officer

Operations Director

Technical Director

Architect

Structural Engineer

Building Services Engineer

Cost Manager

Claims Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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