STANDARD CONTRACTS

Hopefully the information on the Client Page and Client, Helpful Guidelines Page has provided valuable education into the process, criteria, methodology, and selection of a qualified consulting engineer. Now that a contract is ready to be executed we offer the following standard (and widely accepted) contracts for use in both small or large projects. Any ACENZ member should have access to these contracts as well but we recommend you request using CCCS (Conditions of Contract for Consultancy Services). By using a standard contract, you and your consultant can save valuable and costly legal time.

The most current versions are available below. For older versions of contracts (available to ACENZ members only) please email us to request an older edition.

CCCS (CONDITIONS OF CONTRACT FOR CONSULTANCY SERVICES)

The original CCCS was developed jointly in 2000 by the Auckland Region Contracts Group (ARCG), ACENZ, IPENZ, ALGENZ (then INGENIUM, now IPWEA) and Transit NZ (now NZ Transport Agency). Through a few editions and revisions, the current document is recommended for general use for contracts for the purpose of procuring and providing professional consulting services. This document has been developed to apply to a wide range of consulting services and for most types of projects and where services are being procured for the purposes of a business. 
 
The general conditions of contract are intended to be amplified or adapted as required to suit particular engagements by use of the "Special Conditions" section. A pro forma is included with the document and similarly, a formal agreement is also included. Users are invited to copy this document in order to bind it into a contract, on the condition that any variations should be clearly identified to all parties. To assist in this matter, the document has been formatted to only allow editing in certain areas. We offer this document FREE of charge in two formats: Word (where only certain fields are editable) and PDF (where no part is editable). 
 
Due to the standardised nature of the document and it's general acceptance for use by many organisations throughout New Zealand, the editable fields are limited. Any change to font, format, or extra inclusions can invalidate the contract for general and wide spread use. What is offered here are the only two options available to the public, clients, and consulting engineers. We will not circulate an unrestricted copy and please be wary of anyone who does use an unrestricted copy of the CCCS document. 

CURRENT EDITION - WORD VERSION (SOME EDITABLE FIELDS) 

CURRENT EDITION - PDF VERSION (NO EDITABLE FIELDS)

SHORTFORM AGREEMENTS

The shortform agreement is a two page document acceptable for use with small to medium projects as risk and responsibility are reasonably shared between the parties. While this form can still be used for larger projects, it is recommended that CCCS be used. Your consulting engineer should be able to recommend if CCCS or Shortform Agreement is the more appropriate contract to use for the project. Again, we emphasis using standardised contracts to avoid unesessary cost and legal review. Be wary of any party using an unrestricted version of these documents. 

CURRENT EDITION - WORD VERSION (SOME EDITABLE FIELDS)

PRODUCER STATEMENTS

A Producer Statement is a document prepared by an engineer confirming their professional opinion, based on stated reasonable grounds, that aspects of design of a building achieve compliance with the Building Code, or that elements of construction have been completed in accordance with the approved building consent. The intent of a Producer Statement is to signal to the Building Consent Authority that certain design/monitoring work has been done (or supervised) by a practitioner who is competent to perform the defined work.

The original producer statement forms were developed by ACENZ, IPENZ and NZIA together with the builders and building officials to meet requirements of the Building Act 1991. They have since been modified and updated to reflect changes to the regulations and environment of use. 

Producer statements are not a guarantee that nothing will go wrong but they should give some assurance that work has been carried out by, or under the control of, a competent professional. As the forms require confirmation of professional indemnity insurance they also provide some security of financial redress for valid claims that relate to negligent work for which a consultant is liable. ACENZ member firms (even sole practitioners) are required to hold a minimum level of Professional Indemnity Insurance of $500,000. 

PRODUCER STATEMENT ISSUES

Perhaps due to a rush for BCA accreditation, a significant current issue for engineers, architects and surveyors has been a plethora of miscellaneous local authority documents appearing in place of industry accepted producer statements. Amongst the issues are: 

  • Personal liability to the PS signatory – By such requirement clients can negate their financial redress, which is guaranteed through PI insurance carried by the firm, not the individual.
  • Inclusion on documents of Indemnities, warranties and guarantees – the insurance industry advise that PI insurance is valid for ‘reasonable endeavours’. If a firm has been required to commit to any of the aforementioned, it may have invalidated their insurance cover.
  • Excessive Liability and PI Cover – ACENZ is now frequently hearing of engineers and architects engaged on small jobs being required to carry $2,000,000 or more liability and PI insurance cover. ACENZ requires members to carry a minimum cover of $500,000, and member firms do expect a higher requirement on large and complex jobs. A higher requirement on smaller jobs will exclude smaller consultancies from the market, will increase the cost of all cover and will increase the range of insurance “exclusions”
  • The designer is required to carry insurance for the client and/or contractor – this is a no-no for the insurance industry, and they will not meet a claim under such an agreement.
  • The professional being required to be a signatory for work for which he was not responsible – more often ACENZ is hearing of attempts to have a designer sign a Producer Statement that covers construction works for which they have had no observation or supervision responsibilities.

Any of the above can nullify the availability of insurance to a consulting firm, and ACENZ actively recommends to all member companies that they do not sign such forms. Increasingly, consulting engineers are taking a united stand in rejecting excessively onerous documentation.

PRODUCER STATEMENT SIGNATORIES

Some council’s are compiling lists of ‘authorised signatories’ for producer statement sign-off. We believe that list already exists in a consistent and nationally recognised context. The signatory of a producer statement is likely to be a Chartered Professional Engineer (CPEng) or a Registered Architect.  By that status (reinforced by an engineering firm’s membership of ACENZ) the Building Consent Authority can reasonably expect that the design professional is currently competent and is bound by a code of ethics to work within the range of his or her competency. CPEng or Registered Architect are relatively new certifications, and some practitioners may not yet have completed the process to achieve that status.  IPENZ (for CPEng) and NZIA (for Reg.Archs) can provide access to the registers. ACENZ can provide lists of firms with expertise in particular engineering disciplines.

PROFESSIONAL SERVICES DURING CONSTRUCTION PHASE

ACENZ encourages Building Consent Authorities to require that the range and level of services carried out by the design professional during construction is appropriate to cover the project concerned.  No design professional can provide a PS4 producer statement unless they have been engaged to undertake an appropriate level of construction monitoring or observation services.

PRODUCER STATEMENT FORMS

GUIDANCE ON USE OF PRODUCER STATEMENTS
Guidance notes applicable to all producer statement forms. You may also use this joint practice note between IPENZ and ACENZ on the use of Practice Notes

GUIDELINES ON USE OF PRODUCER STATEMENTS - JOINT PN FROM IPENZ AND ACENZ

PRODUCER STATEMENT PS1 - DESIGN
A statement of opinion that certain aspects of proposed building work will comply with the building code, if the work is constructed according to the referenced documentation (eg engineering design drawings and specifications).

PRODUCER STATEMENT PS2 - DESIGN REVIEW
A statement of opinion, based on a review of design documents which have been prepared by others, that the aspects of proposed building work reviewed will comply with the building code.

PRODUCER STATEMENT PS4 - CONSTRUCTION REVIEW
A statement of opinion, based on reasonable and stated grounds which may include the records of construction monitoring and information supplied by the contractor, that certain aspects of building work have been completed according to the building consent and amendments.

CONSTRUCTION MONITORING SERVICES

For more information on construction monitoring 

These documents are are copyright to IPENZ and ACENZ. If it is altered in any way from the original it is no longer a Standard Document and will not be honoured by these organisations. Any change to the document is a breach of the Copyright Act 1994. The only insertions that may be made are to complete the Special Conditions in the spaces permitted. Use of this pdf format presumes acceptance of these conditions.

CONTACT

The Association Representing Consulting & Engineering in NZ
Physical: Level 11, 79 Boulcott Street, Wellington 6011
Postal: PO Box 10247, Wellington 6143
Phone: 04 472 1202  |  Email: service@acenz.org.nz 

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