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Prime Contractor Agreement for New Zealand

Prime Contractor Agreement Template for New Zealand

A Prime Contractor Agreement is a comprehensive legal document used in New Zealand that establishes the contractual relationship between a principal (client) and a prime contractor for the execution of construction or infrastructure projects. This agreement, governed by New Zealand law including the Construction Contracts Act 2002 and Health and Safety at Work Act 2015, sets out the terms and conditions for project delivery, including scope of works, payment terms, timeline, risk allocation, and compliance requirements. It serves as the primary contract document that governs the entire project delivery process, defining rights, obligations, and remedies for all parties involved.

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What is a Prime Contractor Agreement?

The Prime Contractor Agreement is essential for construction and infrastructure projects in New Zealand where a principal engages a single contractor to take overall responsibility for project delivery. This agreement type is particularly crucial when the scope of works is substantial and may involve multiple subcontractors, requiring clear lines of responsibility and risk allocation. The document incorporates requirements from key New Zealand legislation including the Construction Contracts Act 2002, Building Act 2004, and Health and Safety at Work Act 2015. It typically includes detailed provisions for project execution, payment mechanisms, variations, dispute resolution, and quality assurance. The Prime Contractor Agreement is suitable for both commercial and residential projects, though its complexity and comprehensive nature make it particularly appropriate for larger-scale developments where sophisticated project management and risk mitigation are required.

What sections should be included in a Prime Contractor Agreement?

1. Parties: Identification of the Principal and the Prime Contractor, including full legal names and addresses

2. Background: Context of the agreement, including project overview and purpose

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules for interpretation

4. Appointment and Scope of Works: Formal appointment of the contractor and detailed description of the works to be performed

5. Contract Sum and Payment: Payment terms, schedule, and mechanisms in compliance with the Construction Contracts Act

6. Time for Completion: Project timeline, completion dates, and provisions for extensions of time

7. Contractor's Obligations: Key responsibilities including workmanship, compliance with laws, and project management

8. Principal's Obligations: Client responsibilities including site access, approvals, and information provision

9. Health and Safety: Health and safety requirements and responsibilities under NZ legislation

10. Variations: Process for requesting, approving, and implementing changes to the scope of works

11. Insurance and Indemnity: Required insurance coverage and indemnification provisions

12. Defects Liability: Defects period, remediation process, and warranties

13. Termination: Grounds and process for contract termination by either party

14. Dispute Resolution: Process for resolving disputes in accordance with NZ law

15. General Provisions: Standard contractual provisions including notices, assignment, and governing law

What sections are optional to include in a Prime Contractor Agreement?

1. Subcontracting: Terms for engaging and managing subcontractors - include when subcontracting is anticipated

2. Performance Security: Requirements for bonds or guarantees - include for high-value projects

3. Intellectual Property: IP ownership and licenses - include when design or creative works are involved

4. Environmental Requirements: Environmental obligations - include for projects with significant environmental impact

5. Quality Assurance: Specific quality control requirements - include for complex technical projects

6. Confidentiality: Confidentiality obligations - include when sensitive information is involved

7. Force Majeure: Provisions for unforeseen events - include for long-term or high-risk projects

8. Building Information Modeling: BIM requirements and protocols - include when BIM is used in the project

What schedules should be included in a Prime Contractor Agreement?

1. Schedule 1 - Scope of Works: Detailed description of works including specifications and drawings

2. Schedule 2 - Contract Sum Breakdown: Detailed pricing schedule and payment milestones

3. Schedule 3 - Program of Works: Project timeline, milestones, and completion dates

4. Schedule 4 - Site Information: Site details, access requirements, and known site conditions

5. Schedule 5 - Key Personnel: Details of key staff from both parties involved in the project

6. Schedule 6 - Forms and Procedures: Standard forms for variations, payment claims, and other processes

7. Schedule 7 - Special Conditions: Any project-specific requirements or variations to standard terms

8. Appendix A - Drawings: Complete set of construction drawings

9. Appendix B - Technical Specifications: Detailed technical requirements and standards

10. Appendix C - Insurance Certificates: Copies of required insurance policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
















































Clauses


































Relevant Industries

Construction

Infrastructure

Property Development

Commercial Real Estate

Residential Development

Government & Public Sector

Mining & Resources

Education

Healthcare

Industrial & Manufacturing

Renewable Energy

Telecommunications

Relevant Teams

Legal

Operations

Commercial

Procurement

Project Management

Risk & Compliance

Construction

Business Development

Executive Leadership

Finance

Contract Administration

Relevant Roles

Construction Manager

Project Director

Contract Administrator

Commercial Manager

Legal Counsel

Procurement Manager

Project Manager

Development Manager

Chief Operating Officer

Risk Manager

Quantity Surveyor

Operations Director

Construction Director

Chief Executive Officer

General Counsel

Contract Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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