BuildLaw Issue 32 June 2018 | Page 6

BuildLaw: In Brief

Updated Standard Consultancy Agreements

Two of the most commonly used standard agreements to engage consultants, the ACENZ/Engineering New Zealand (formerly IPENZ) Short Form Agreement (known as ‘SFA’) and the Conditions of Contract for Consultancy Services (known as ‘CCCS’) have recently been updated and are now available for use.
Key changes include:
• adding a requirement a give an ‘early warning’ which is consistent with a trend in the wider construction industry towards these types of early notification/warning clauses (eg, FIDIC forms and the 2013 release of NZS3910 and 3916) - the consultant must notify the client as soon as it becomes aware, or should reasonably have become aware, of a direction or circumstance which could impact the provision of the services and whether it considers that direction or circumstance involves a variation;
• confirming the statutory position that the provisions of the Construction Contracts Act 2002 apply including in circumstances where a payment claim has been issued in accordance with the Act and the adjudication regime. The new edition also provides the consultant with a default monthly progress payment entitlement with payment due on the 20th of the month following issue of a GST invoice, updating contractual suspension rights in circumstances of payment default; and
• updating health and safety provisions to align with the HSWA including a new definition of ‘designer’. Under the HSWA specific obligations are imposed on a designer (PCBU) to ensure plant, substances, and structures are designed without risks to the health and safety of persons who at a workplace, use, handle, store, construct or carry out any reasonably foreseeable activity in relation to them.
MBIE publishes guide to altering existing buildings










On 22 June 2018 MBIE published a guide to altering an existing building. The requirements apply to all existing buildings, including those that are earthquake prone.
Altering an existing building can trigger certain requirements, including:
• ensuring the building continues to comply with the Building Code to at least the same extent as before the alteration, and