Performance Bonds

Securing Positive Project Outcomes using NEC3

The NEC3 suite of contracts is growing in use in New Zealand.  The contracts were used with apparent success for the development of the stadium and other facilities for the London Olympics in 2012, and it is the preferred form of contract by the Office of Government Commerce for all public private partnerships in the UK.

In NZ, the engineering and construction contract was used for the development of the Northland Events Centre for the Rugby World Cup in 2011.  At $16.5 million, the development was more modest that some others, but it was on time, within budget, and effective.

This paper was prepared for the NEC Users’ Group Australasia conference in Christchurch on 27 August 2013.

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Performance Bonds – Encouraging people to do what they said they would

As the latest round of revisions to NZS3910 nears completion, the topic of bonds has come up again, though perhaps not as a result of any change in the approach of the drafting committee.

This paper questions the need for requiring bonds using the standard for of performance security attached to NZS3910:2003

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