Two years after the release of NZS 3910:2023, the updated standard form construction contracts NZS 3916:2025 (Design and Construct) and NZS 3917:2025 (Fixed Term) have now been published. We take a look at the key changes.
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In today’s complex and highly competitive landscape, it’s essential to have contracts that are both thorough and easy to interpret. New Zealand’s building, construction, engineering and infrastructure sectors depend on standardised contract conditions to maintain fairness, support economic growth and align with national legislation.
The standard form contracts NZS 3916 and NZS 3917 are updates of the 2013 versions and incorporate many of the changes introduced in NZS 3910:2023 Conditions of contract for building and civil engineering.
The review kicked off in September last year, with Navig8 Construction Advisory Director Gavin Shaw representing ACE New Zealand and Engineering New Zealand on the review panel. After reviewing, drafting, public consultation and editing, they are now available on the Standards New Zealand website.
NZS 3916:2025 Conditions of contract for building and civil engineering – Design and Construct
NZS3916 is similar to NZS3910 but has been adapted to provide for the situation where the contractor is responsible for design as well as construction.
The updates in this edition include those introduced in NZS 3910:2023 and extend to almost every section. Some parts have been moved, but the overall structure has been maintained so the contract remains familiar and easy to navigate.
Some of the more notable changes are:
- The introduction of a Target Cost Contract Price, and provisions for the Contract Price to have various components including Lump Sum, Cost Reimbursable, and Target Price
- The inclusion of a new clause dedicated to the protection of the environment
- The addition of clear contract administration processes throughout, including new content on reviewing instructions and decisions
- The elimination of the Engineer to the Contract and its dual role, replacing it with two distinct new roles. This significant change ensures clarity on the purpose of each role, emphasising when specific activities demand fairness and impartiality
- The transition to a fault-based indemnity and the introduction of a limitation on liability
- The introduction of the Final Account and Interim Final Account processes.
NZS 3917:2025 Conditions of contract for building and civil engineering – Fixed Term
NZS 3917 is intended for use when contracts are let for construction or maintenance of building or engineering works where the contract is intended to run for a defined period of time, as opposed to a contract for a defined scope of work.
It might also be used for the provision of services (other than design) such as inspection and testing, cleaning, painting, preventative maintenance, repairs or renewal of components within completed works.
When defining the contract works, it needs to be made clear what the services are, and whether the contractor has an exclusive right to provide all such services to the principal, or whether its right is limited to a defined scope.
Some of the more notable changes are:
- Clarification of Principals Requirements
- The introduction of a Target Contract Price, and provisions for the Contract Price to have various components including Lump Sum, Cost Reimbursable, and Target Price
- The inclusion of a new clause dedicated to the protection of the environment
- The addition of clear contract administration processes throughout, including new content on reviewing instructions and decisions
- The elimination of the Engineer to the Contract and its dual role, replacing it with two distinct new roles. This significant change ensures clarity on the purpose of each role, emphasising when specific activities demand fairness and impartiality
- Removal of the Principal’s obligations to search for underground and above-ground utilities records
- The transition to a fault-based indemnity and the introduction of a limitation on liability.
Overall, the contract remains familiar to practitioners and users – while some parts have been moved, the overall structure has been maintained.