BuildLaw: In Brief 29.01.2013

The Construction Contracts Amendment Bill was introduced to Parliament today

The Minister has advised that construction contract disputes will be dealt with faster and more cost effectively under proposed amendments to the Construction Contracts Act which were introduced in Parliament today.

Building and Construction Minister Maurice Williamson says the proposed changes, which include streamlining the disputes process and introducing greater accountability, are part of a package of building law reforms aimed at making improvements to the building sector’s accountability and productivity.

The Construction Contracts Act 2002 created default progress payment provisions for construction contracts, provided an adjudication process for disputes, as well as ways of recovering non-payment of construction contracts.

“A review of the Act in 2009 concluded reasonably minor amendments could give it a wider application, and many of the suggestions made in the review are contained in the amendments introduced today,” Mr Williamson says.

The proposed amendments include:
  • Removing the distinction between residential and commercial construction contracts
  • Broadening the definition of construction work to include design, engineering and quantity survey   work
  • Allowing more direct enforcement of determinations about rights and obligations
  • Reducing to five days, the time a defendant has to oppose an application to have an adjudication determination entered as a judgment

There will be no further progress on the Bill this week as Parliament’s business is taken up with various annual processes around the opening of Parliament for the year.  Parliament is in recess next week for Waitangi Day week.  The earliest, therefore, any further progress can be made on the Bill is when Parliament resumes on Tuesday 12 February.

We will keep you informed of progress as and when it happens and will have a copy of the bill on our website as soon as it is available.

Click Here to access the Resources section of our site where we have copies of all relevant Legislation (and where we will post a copy of the Amendment Bill)

An Authorised Nominating Authority
under section 65 of the Construction Contracts Act 2002