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Basic Construction Contract

Basic Construction Contract Template for New Zealand

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Key Requirements PROMPT example:

Basic Construction Contract

"I need a Basic Construction Contract for a residential renovation project in Auckland, with a contract value of NZD 450,000 and completion date of March 2025, including specific provisions for heritage building considerations."

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Document background
The Basic Construction Contract serves as a fundamental legal instrument for construction projects in New Zealand, designed to comply with the Construction Contracts Act 2002, Building Act 2004, and other relevant legislation. This document is particularly suitable for straightforward construction projects where parties need a clear, comprehensive agreement that covers essential aspects of the construction process. It includes provisions for scope of works, payment terms, completion timeframes, and quality requirements, while incorporating New Zealand-specific legal requirements and industry standards. The contract is structured to protect both parties' interests while ensuring practical project execution and regulatory compliance. It's commonly used for residential and small to medium-sized commercial construction projects where a more complex standard form contract might be unnecessary.
Suggested Sections

1. Parties: Identifies and provides full legal details of the contractor and the principal

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the contract and establishes interpretation rules

4. Scope of Works: Detailed description of the construction work to be performed

5. Contract Price and Payment: Specifies the agreed price, payment schedule, and payment processes in accordance with the Construction Contracts Act

6. Time for Completion: Establishes project timeline, completion date, and any milestone dates

7. Contractor's Obligations: Sets out the contractor's duties, including quality standards, compliance with laws, and workmanship

8. Principal's Obligations: Defines the principal's responsibilities, including site access and information provision

9. Variations: Process for requesting, approving, and valuing changes to the scope of works

10. Health and Safety: Specifies responsibilities and requirements under the Health and Safety at Work Act

11. Insurance and Liability: Details required insurance coverage and allocation of risks

12. Defects Liability: Establishes defects notification period and remediation process

13. Dispute Resolution: Outlines the process for resolving disputes between parties

14. Termination: Grounds and process for contract termination

15. General Provisions: Standard contract clauses including notices, assignment, and governing law

Optional Sections

1. Performance Security: Required when parties agree on bonds or guarantees for performance

2. Provisional Sums: Used when certain costs cannot be determined at contract formation

3. Subcontracting: Included when subcontractors will be engaged, specifying approval requirements and obligations

4. Intellectual Property: Required when design elements or proprietary methods are involved

5. Environmental Management: Included for projects with significant environmental considerations

6. Quality Assurance: Used for projects requiring specific quality management systems

7. Retention: Details retention money requirements when applicable under the Construction Contracts Act

8. Liquidated Damages: Included when parties agree on predetermined damages for specific breaches

Suggested Schedules

1. Schedule 1: Contract Details: Key project information, contact details, and specific contract parameters

2. Schedule 2: Scope of Works: Detailed specifications, drawings, and technical requirements

3. Schedule 3: Program: Detailed project timeline, milestones, and completion dates

4. Schedule 4: Payment Schedule: Breakdown of contract price, payment milestones, and rates

5. Schedule 5: Site Information: Site details, access requirements, and known site conditions

6. Appendix A: Technical Specifications: Detailed technical requirements and standards

7. Appendix B: Drawings: Construction drawings and design documents

8. Appendix C: Health and Safety Requirements: Specific health and safety procedures and requirements

9. Appendix D: Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions













































Clauses






























Relevant Industries

Construction

Real Estate

Property Development

Infrastructure

Commercial Property

Residential Property

Industrial Construction

Civil Engineering

Building Services

Architecture

Relevant Teams

Legal

Construction

Commercial

Operations

Project Management

Procurement

Risk & Compliance

Property Development

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Quantity Surveyor

Site Manager

Commercial Manager

Legal Counsel

Risk Manager

Procurement Manager

Property Developer

Building Contractor

Construction Director

Compliance Officer

Operations Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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