The Construction Contracts Act (CCA)
Background
The Construction Contracts Act applies to all contracts entered into from 1 April 2003.It provides processes for progress payments on construction contracts, for the enforcement of overdue payments, and for the adjudication of disputes.After its first year there has been a noticeable improvement in payment practices, and in the resolution of disputes. The Federation notes that many subcontractors have not yet adjusted their business practices, so are not receiving the full benefits of the CCA.
Download the Act:
Click here to download a copy of the Construction Contracts Act
Model Forms:
NZSTCF has developed a series of model forms to help contractors and subcontractors comply with the requirements of the CCA. You can download these now:
1. Payment Claim
2. Payment Schedule
3. Variation Price Submittal
Where Can I Find Out More?
The following publications are available:
Managing Contractors' Cashflow - Making The Construction Contracts Act Work For You
by Peter Degerholm.
This book is written especially for contractors and subcontractors, to explain the CCA in simple terms. It outlines the practical steps that every subcontractor should take to protect their cashflow and to obtain their rights under the CCA.
Available from Rawlinsons for $25 (including GST and delivery).A Guide to the Construction Contracts Act by Geoff Bayley and Tómas Kennedy-Grant.
A comprehensive and definitive guide to the workings of the CCA. Also available from Rawlinsons at $105 (including GST and delivery).If both books are ordered at the same time, the price is discounted to $110. Both books include a copy of the CCA, regulations and model forms, and may be ordered from Rawlinsons at www.rawlinsons.co.nz or 0800 426 326. (The above prices are as at November 2005).
There is also the free download of the Law Commisions publication "Protecting Construction Contractors" available here.
How to find an adjudicator?
Parties to an adjudication may request an agreed adjudicator to act. If they do not agree they may ask an agreed nominating body to request on their behalf. If they cannot agree on either, the claimant may request an authorised nominating authority to request an adjudicator to act. The request must be made in accordance with the requirements of the CCA.
Many arbitrators also offer adjudication services, and the names of local practitioners can be located under Dispute Resolution in your Yellow Pages directory.
Nominating authorities
Arbitrators' and Mediators' Institute of New Zealand Inc
by telephone at 0800 4AMINZ.
The New Zealand Institute of Quantity Surveyors Inc. has established a list of adjudicators, and has applied to become an ANA. Visit the NZIQS website at www.nziqs.co.nz or telephone 04 473 5521.
Do
you need help with the CCA?
Building Disputes Tribunal is authorised by the Department of Building and Housing to nominate adjudicators under the Construction Contracts Act. It is New Zealand's only independent, nationwide specialist building and construction dispute resolution service. It has a select panel of highly skilled, experienced and respected adjudicators, arbitrators and mediators. Building Disputes Tribunal is the only nominating authority to provide a comprehensive case management service and free access to an experienced construction lawyer for guidance on the adjudication process. Its website contains useful documents, cases and information on the Construction Contracts Act and parties can apply online for the nomination of an adjudicator at no charge. It also has established a fixed fee service for disputes of less than $40,000. Check out www.buildingdisputestribunal.co.nz
Standard Forms of Agreement:
Following the passing of the Construction Contracts Act, NZSTCF worked closely with the Registered Master Builders Federation and NZ Contractors Federation in updating their standard forms of subcontract agreement. The Federation supports the use of these agreements, but in all cases recommends that subcontractors ensure that the payment arrangements offered are acceptable.
Model Tender Tags:
NZSTCF has developed model tender tags and clauses that may be inserted into quotes and tenders to define payment arrangements that will be consistent with the CCA. They are available in word format from this link.
Terms and Conditions of Contract Template:
A full set of terms was published in June 2004 as a reference. As these define the commercial arrangements between the parties, other trade-specific clauses must be added where relevant. These terms are available here in PDF format.
From The Courts:
For some Court cases relating to the CCA click here.
Recent CCA Cases
- Marsden Villas Limited vs Wooding Construction Limited Judgment: 25 May 2005 - Asher J
- Willis Trust Company Ltd and Ian Laywood and Gary James Rees vs Robert John Green and Holmes Construction Wellington Ltd Judgment: 25 May 2006 - Harrison J
-
CCA/IMPLEMENTATION RESEARCH REPORT (MAY 2007)
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