NZS 3910 Has Had a Make Over – What Can You Expect From The Changes?
17 May 2024

New Zealand’s most commonly used standard form construction contract has undergone a long awaited review and update in what is now the NZS 3910:2023 form. Since the last version was released in 2013, there have been many legislative, industry and attitude changes (particularly towards pricing and delivery risk) and the construction sector was calling out for a comprehensive review of this document.


One of the aims of the revised form was to limit the need and use of special conditions. Here are some of the most significant changes:

  • The introduction of a Target Price so that cost savings and cost overruns can be shared between the Contractor and Principal. This “pains” and “gains” adjustment doesn’t include a lot of detail or complexity but reflects what is often seen in the industry now and promotes a fairer risk-gain reward system.
  • Clarification that the Contract Price can be made up of a number of different pricing components (e.g. lump sum, cost reimbursement, target price). Recognising the complexity of some projects and that the Contract Price can be hard to determine at tender/contract entry and often includes a mix of different pricing methods.
  • The Engineer is replaced by a Contractor Administrator (who acts for the Principal giving directions) and an Independent Certifier (who is to be independent and impartial on matters such as valuing work and certifying scheduled amounts). However, these new roles can still be carried out by the same person so the conflict of interest issue remains.
  • The introduction of an Interim Final Account (setting out the proposed final Contract Price for the whole of the Contract Works up to the date of Practical Completion) and a Final Account (setting out the proposed final Contract Price for the whole of the Contract Works after issue of a Final Completion Certificate limited to the Interim Final Account and any Variations occurring after Practical Completion). This no doubt promotes early discussion and transparency on adjustments to the final Contract Price, which can often be kicked down the road until the final payment claim.
  • The Contractor’s indemnity is now fault based and much narrower than the previous ‘catch all’ version. There is also an option to include a cap on the Contractor’s maximum liability under the Contract (with some specified exclusions).
  • New dispute resolution provisions that do away with the previously prescribed ‘tiered’ approach. Time bars are also removed, meaning arbitration is available at any time.


Although some good head way has been made (for example around contractor risk and liability, fairer pricing mechanisms, earlier discussion and more certainty on proposed final price claims/adjustments), the need for special conditions remains. Matters such as Government suspensions (e.g. Covid), termination rights, the extent and type of allowable variations, time delays, site contamination and other disruption events will likely still be hotly contested.


It should also be noted that the related 3915 and 3916 contracts have not been updated in line with this revision and there is currently no timeframe for when this will occur.


In a sector that is fraught with uncertainty and challenges, let’s hope it’s not another 10 years before a more comprehensive review of our 3910 contract is achieved.


If you would like more information on the changes to the NZS 3910 contract please get in touch with Nicole Warner.

26 November 2025
Proposed Plan Change 120: What You Need to Know What is PC120 and why does it matter? Auckland Council has proposed a change to the Auckland Unitary Plan called Plan Change 120 (PC120) . This change is about two main things: Rezoning areas of residential land to allow more housing intensification in and around urban centres and transport hubs. Making communities safer from natural hazards like flooding and landslides. Why is this happening? By way of background, PC78 (Auckland’s former intensification plan change, as required by the National Policy Statement on Urban Development 2020) incorporated the Medium Density Residential Standards that were required at the time. Generally, this allowed three dwellings of up to three storeys to be built on most residential sites without the need for resource consent. In August 2025, the Government amended the Resource Management Act 1991 to allow for greater intensification in town centres and around existing and planned transit routes. As a result, PC78 was withdrawn in part by Auckland Council and PC120 was notified. What will PC120 do? Increase housing density within and around town centres and transport hubs. Allow taller buildings: At least 6 storeys within walkable catchments of the city/town centre zone and around existing and planned train and bus routes. At least 10–15 storeys around certain train stations listed in the Resource Management Act 1991. These heights and densities must be enabled unless a ‘qualifying matter’ applies to a site which makes that level of development inappropriate. Natural hazard rules PC120 also introduces stricter rules to manage natural hazards such as flooding, landslides, and coastal erosion. This is a response to recent severe weather events like the 2023 Auckland floods caused by Cyclone Gabrielle. The updated rules and hazard mapping re-classify hazard areas and their risk level and require mitigation measures to be implemented that avoid creating or worsening natural hazard risks. What does this mean for property owners and developers? Expect more multi-storey and apartment-style housing near town centres and transport hubs, and an increase in shared spaces and communal assets. Intensification may lead to issues concerning: Boundary and airspace rights. View and sunlight obstruction. An increase in easements and restrictive covenants in already built-up areas. New subdivision and land uses may only be allowed where the natural hazard risk is considered tolerable or acceptable. Coastal development will become more difficult. The impact of a proposed development on existing floodplains and overland flow paths will be scrutinized. Maintenance or upgrade works may be required to ensure stormwater runoff and flood waters are adequately conveyed. Why should you care? These changes could affect your property rights, development plans, and legal obligations. If you’re buying, selling, or developing land, it’s important to understand how PC120 impacts you. Please get in touch with our property team if you’d like to discuss how these proposed changes could affect your property or future plans. https://www.glaisterkeegan.co.nz/our-expertise/property#CommercialProperty
26 November 2025
Sole v Hutton – disclosure obligations for apartment sales and the importance of thorough due diligence when purchasing In Sole v Hutton [2025] NZHC 430, the High Court dealt with a dispute over undisclosed weathertightness issues in an apartment complex and delivered a strong reminder about vendors’ disclosure obligations. In 2019, the Purchasers (the Soles) purchased an apartment in Mount Maunganui for $1,495,000. Less than a year after settlement, they discovered major weathertightness issues affecting the entire building. The Body Corporate embarked on an extensive remediation project, and the Purchasers were hit with more than $1,300,000 in special levies for their share of the work. The Court found that the Vendors (the Huttons) had attended Body Corporate meetings in 2014 where multiple expert reports highlighted significant leaks and recommended re-roofing and re-cladding of the building. Despite this, the Vendors told their agent that there were no known weathertightness issues and this information was passed onto the Soles. The Court held that:- · The Vendors breached the warranty in clause 11.2(7) of the Agreement for Sale and Purchase of Real Estate, which requires disclosure of any facts that may give rise to liabilities under the Unit Titles Act 2010; · The failure to disclose the reports and the assurance that there were “no issues” amounted to misrepresentation. The Soles were awarded $926,806.48 plus interest in damages, including their share of remedial costs (after a 30% betterment reduction, as the remedial works increased the value of the property), alternative accommodation and general damages for stress and inconvenience. Key takeaways:- · Vendors : Always disclose all known issues including historic reports and AGM minutes, even if you believe the matter has been dealt with or is no longer significant. · Purchasers : Buying a unit title property comes with shared risk. Ensure you complete thorough due diligence including reviewing all Body Corporate records, reports and minutes to understand potential liabilities and future levies. · Risk management : Non-disclosure can lead to expensive litigation, while thorough due diligence can prevent nasty surprises. Thinking of buying a unit title property? Our property team can guide you through a thorough due diligence process so you have a clear picture of any potential liabilities before you buy. This can save you from unexpected costs and disputes down the track. Selling a unit title property? Full and accurate disclosure is not just a legal requirement, it’s the best protection against expensive claims after settlement. If you’re unsure what must be disclosed or how the warranties in the Agreement for Sale and Purchase apply to your situation, get in touch with our property team. We can help you prepare clear, compliant disclosure statements and minimise the risk of future disputes. https://www.glaisterkeegan.co.nz/our-expertise/property#ResidentialConveyancing
26 November 2025
In a significant move to ease housing pressures, the New Zealand Government has passed legislation allowing homeowners to build granny flats—up to 70 square metres—without needing building consent. This change, part of the Building and Construction (Small Standalone Dwellings) Bill, is expected to take effect in early 2026, following the removal of resource consent requirements by the end of 2025. The exemption applies to standalone dwellings that are simple in design, comply with the Building Code, and are constructed by authorised building professionals. While formal building consent is no longer required, homeowners must still notify their local council before starting and after completing the build. This reform aims to increase housing supply, reduce costs, and boost productivity in the construction sector. It offers practical benefits for multigenerational families, rural communities, and those seeking affordable housing options. For clients considering adding a granny flat to their property, now is the time to begin planning. Engaging qualified designers and builders early will ensure compliance with the exemption criteria and avoid delays once the regulations come into force. https://www.glaisterkeegan.co.nz/our-expertise/property#ResidentialConveyancing
Show More