The definition of construction work under section 6 of the Construction Contracts Act 2002 has, with effect from 1 September 2016, been extended to include related services, which are defined in the new subsection (1A) as including:

(1A)   construction work includes –

(a)    design or engineering work carried out in New Zealand in respect of work of the kind referred to in subsection (1)(a) to (d) and (f):

(b)    quantity surveying work carried out in New Zealand in respect of work of the kind referred to in subsection (1)(a) to (g)

For architects, engineers and quantity surveyors, the protections for progress payments under the Act now apply.  Similarly, the provisions relating to adjudicating disputes under their appointment agreements also apply.

Provided the formal requirements for making payment claims are met, this will mean that those professional consultants will get the benefit of the protections under Part 2 of the Act.  The presumption will be, however, that consultants have sufficient courage to invoke the Act in their invoicing, that they will follow the procedures in the Act for making progress claims, and that their claims meet the formal requirements of section 20.

It is likely that clients will also be more robust in invoking the adjudication procedures in Part 3 of the Act to resolve disputes with their professional consultants.  This is likely to be more challenging for consultants.

The attached paper outlines some of the issues arising for designers, engineers and quantity surveyors under the new amendments to the Act – Related Services under the CCA

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