The Contract Between Contractor And Owner is a fundamental legal document used in New Zealand's construction industry to establish a binding agreement for construction works. This document is essential when engaging a contractor for any building, renovation, or construction project, whether residential or commercial. It complies with New Zealand's Construction Contracts Act 2002, Building Act 2004, and Health and Safety at Work Act 2015, providing comprehensive coverage of project specifications, payment terms, timelines, and responsibilities. The contract is particularly important as it protects both parties' interests by clearly defining scope, quality standards, dispute resolution procedures, and risk allocation. It's designed to be adaptable for various project sizes while maintaining compliance with New Zealand's regulatory requirements and industry best practices.
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1. Parties: Identifies and provides full legal details of the contractor and the owner
2. Background: Outlines the context of the agreement and the parties' intentions
3. Definitions and Interpretation: Defines key terms used throughout the contract and establishes rules for interpretation
4. Scope of Works: Detailed description of the work to be performed by the contractor
5. Contract Price and Payment Terms: Specifies the agreed price, payment schedule, and payment procedures in accordance with the Construction Contracts Act
6. Time for Completion: Establishes project timeline, completion date, and any milestone dates
7. Contractor's Obligations: Lists all responsibilities and obligations of the contractor including quality standards and compliance requirements
8. Owner's Obligations: Specifies the owner's responsibilities including site access, approvals, and information provision
9. Variations: Procedures for requesting, approving, and pricing changes to the scope of work
10. Health and Safety: Outlines health and safety requirements and responsibilities in accordance with the Health and Safety at Work Act
11. Insurance and Liability: Details required insurance coverage and allocation of risks between parties
12. Defects Liability: Specifies the defects liability period and procedures for rectifying defects
13. Dispute Resolution: Procedures for resolving disputes in accordance with the Construction Contracts Act
14. Termination: Grounds and procedures for contract termination by either party
15. General Provisions: Standard contract clauses including notices, assignment, and governing law
1. Provisional Sums: Include when there are elements of work that cannot be accurately priced at contract formation
2. Prime Cost Items: Include when specific items are to be selected by the owner during construction
3. Subcontracting: Include when the contractor is likely to engage subcontractors, specifying approval requirements and responsibilities
4. Retention: Include when payment retention is required as security for performance
5. Liquidated Damages: Include when specific damages for delay need to be pre-agreed
6. Bank Guarantee: Include when performance security is required through bank guarantees
7. Resource Consent Obligations: Include when resource consent requirements need to be specifically addressed
8. Intellectual Property: Include when design elements or proprietary methods are involved
1. Schedule 1: Scope of Works: Detailed specifications, drawings, and requirements for the works
2. Schedule 2: Contract Price Breakdown: Itemized breakdown of the contract price and payment schedule
3. Schedule 3: Programme of Works: Detailed timeline showing sequence of works and milestone dates
4. Schedule 4: Insurance Requirements: Specific insurance types and coverage levels required
5. Schedule 5: Key Personnel: Details of key contractor and owner representatives and their roles
6. Schedule 6: Special Conditions: Any project-specific conditions or requirements
7. Appendix A: Plans and Drawings: All relevant construction drawings and plans
8. Appendix B: Technical Specifications: Detailed technical requirements and standards
9. Appendix C: Resource Consents: Copies of relevant permits and consents
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