NSZ 3916: The Game of Contracts

At the end of 2018 the NZS 3916 contract (Conditions of contract for building and civil engineering – Design and construct) had its 5th anniversary. This document is commonly used to facilitate the legal agreements for design and build projects. Design and build procurement has become increasingly common in New Zealand in recent years. Although creating tailored standards for different contract options has been a forward step for the infrastructure industry, after 5 years it is time to take stock and assess the standard from the experience of the Principal, Contractor and Consultant.

This paper will briefly step through the creation of the NZS 3916, provide international context of design and build contracts in terms of current trends and alternatives, and highlight the key differences between the NZS 3910:2013 and the NZS 3916:2013.

Using the experiences and perspectives of Principals, Contractors and Consultants in the water and wastewater field, the common use and applicability of NZS 3916 is then evaluated. The advantages and challenges of the contract are discussed as well as potential improvements in the next contract review which could benefit the industry. The discussions presented in this paper are supported by observations made through various water and wastewater projects which Harrison Grierson have been involved in.

As more projects are utilising design and build contracts, it is important to know how to optimise the tendering process and create a positive experience for all parties involved. The opinions presented in this article are samples of various individual practitioner’s views and therefore do not represent Harrison Grierson views.