Construction Contracts and Building Law

About

Recent changes have occurred to NZ construction law and entirely new provisions have been introduced.

Construction contracts need to be carefully drafted and managed to avoid exposing your organisation to severe financial penalties and turning a potentially profitable project into a loss-maker. In order to be profitable, a sound contract is vital and risk factors must be eliminated where possible.

This training seminar has been designed to equip you with the skills required for the effective management of construction contracts. You will gain a thorough understanding of the most recent legal issues surrounding construction contracts and acquire the know-how to protect your organisation from costly contractual disputes.

Key learning objectives
This course will enable you to:
• Eliminate problems up front by using the right language and procedures in the contract
• Administer construction contracts to boost your performance and profitability
• Save time and money by learning to effectively document construction contract negotiations
• Examine the merits of the various types of construction contracts
• Define performance terms to guarantee effective delivery and minimise costs
• Avoid common contractual pitfalls
• Understand the small print in construction contracts
• Ascertain when to terminate a contract and when to seek legal help

Who should attend?
This course is critical for those who are involved in preparing and managing construction contracts but who are not trained lawyers.
In particular it will benefit:
• Engineers
• Construction Managers
• Project Managers
• Architects
• Quantity surveyors
• Contractors
• Private Owners & Developers
• Government Agencies and Public Owners
• Others involved in the construction industry

Outline

Day One

8.30 Registration & Coffee

Examining the Construction Contracts Act
The Construction Contracts Act came into effect on 1 April 2003. The Act applies to every construction contract that relates to carrying out construction work in NZ and which is entered into, or renewed on or after April 1, 2003. It introduces new processes for claim and payment including banning "pay when paid" clauses in subcontracts. It affects everyone who makes claims or payments on building work.
• Examining the practical implications of the Act
• An overview of various processes that will be impacted by the Act
• The impact on the tendering process

The Act and standard conditions of contract for building and civil engineering construction
In light of the new legislation, the Standard Conditions of Contract for Building and Civil Engineering construction such as NZ S 3910, NZ S 3915 and NZIA:SCC1, as well as many other contracts currently used in the industry, may need to be revised.
• Different standard conditions used by various sectors of the construction industry
• Contract provisions required to deal with the new legislation
• Contract procedures required to deal with the new legislation

Understanding how enforcement provisions of the Act will affect your contractual status
The Construction Contracts Act is designed to protect the interests of unpaid parties to the contract. This session will focus on the manner and extent of enforcement provisions in the Act.
• Assessing the scope of enforcement
• Examining the various options and their applicability
• What are the other alternatives to the unpaid party?

Drafting a legally effective construction contract
• What essential ingredients constitute a construction contract?
• Analysis of the principles underlying binding construction contracts
• Offer, acceptance and consideration
• Balancing legal necessities against commercial realities
• Structure of effective contracts
• Parties
• Recitals
• Obligations
• Covenants
• Warranties
• Insurance
• Specific provisions
• Boilerplate clauses
• What formalities are required to make the contract legally binding?
• Terms to avoid or include
• Mistakes commonly made in forming contracts
• Standard obligations of the contractor with regard to workmanship and materials
• Requirements of the Building Code and other standards
• The design/build relationship
• Performance bonds, retention and security

How to read and understand construction contracts
• What clauses should you look out for in pre-printed contracts?
• Foreseeing problems before they arise
• Identifying common danger areas in construction contracts
• Pinpointing criteria that may lead to a breach of a construction contract
• Legal jargon explained: What are the terms that you are likely to come across?

Day Two

Determining which type of construction contract is best suited to your project needs
• Analysis of the different types of construction contracts used in New Zealand
• Examining the merits and demerits of each as experienced by the principal and the contractor
• Choosing the best contract type for your project based on your project objectives
• Fitting the contract type to your business strategy

Managing construction contracts - preventing disputes
• How to avoid common administrative problems in existing contracts
• Understanding the remedies available in the event of a dispute
• Making use of dispute management and resolution options
• Knowing when and how to terminate a construction contract
• What claims can be made under the Act?
• Dealing effectively with lawyers and the legal system

Preparing for mediation
• Preparing a client's building case for mediation
• Who should attend the mediation?
• Assessing the role of experts in the mediation
• What documentation should be used?

Navigating the tendering process
• What legal obligations do you undertake when submitting a tender?
• Getting the most out of the tendering process
• Communicating your business objectives
• Determining how to structure your tender
• Innovative approaches
• Managing risk and cost

Facilitators

Stephen Price, Partner, Minter Ellison Rudd Watts

LLB University of Auckland, 1995
BCom University of Auckland, 1995

Stephen is a Partner and an experienced construction lawyer who leads Minter Ellison Rudd Watts' Construction Division.

Stephen specialises in providing advice in all aspects of construction and commercial property issues for both commercial and residential matters, from negotiation and administration through to dispute resolution. He also advises clients on building and construction contracts, leases, property, general commercial and Fair Trading Act matters.

Stephen also appears in the District and High Courts, the Court of Appeal and the Supreme Court. He is also very experienced in arbitrations and mediations, as well as adjudications and enforcement of payment claims under the Construction Contracts Act 2002. Stephen recently presented the Auckland District Law Society seminar on the Construction Contracts Act.

Stephen Moylan, Senior Associate, Ellison Rudd Watts

BA University of Auckland, 1994
LLB University of Auckland, 1994

Stephen has extensive experience in advising construction companies, architects, engineers and building owners in relation to construction disputes in court, arbitration and adjudication proceedings, and mediations.

He is also experienced in the reviewing, drafting and negotiation of construction contracts and related documentation for a variety of commercial and residential projects, and advising banks and financiers in relation to construction contracts. He has been extensively involved in the review of standard contracts for compliance with the Construction Contracts Act 2002, and advising clients in relation to this Act, and other recent legislation affecting the construction industry including the Weathertight Homes Resolution Service Act 2002 and the Building Act 2004.

Stephen was named as one of New Zealand's leading construction lawyers in the construction chapter of International Who's Who of Business Lawyers - 2005.

In-house Training

Prices and Registration

* Early bird price available when you register and pay before the dates listed.