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The Construction contracts Act 2002 is not as well known by the building industry as it could be and consequently the gains it offers to the building industry are not realised.  Primarily the CCAct, and Regulations, deals with the making of payments, and also provides a speedy process for the resolution of disputes through the Adjudication procedures.  Where appropriate, the CCAct cannot be contracted out of, and it has specific provisions for residential construction contracts.

Keith Huntington is included on the Arbitrators' and Mediators' Institute of New Zealand Inc (AMINZ) Panel of Adjudicators able to be appointed under the Construction Contracts Act 2002.

Although the Act has been around since 2002 there is still a significant lack of knowledge of the existence, implications and usefulness of the CCAct within the Client, Contractor and Sub-Contractor communities.  The primary purpose is to keep the cash flowing by specifying payment processes when the Contract is silent, and then providing a speedy dispute resolution procedure that gives an outcome which can be enforced.  The process is very prescriptive so all the steps must be taken in the correct order and the timelines kept to.

TRAPS FOR 'YOUNG PLAYERS':    It is important, when considering using the provisions of the CCAct and its Regulations, to ensure that the Act applies to the particular contract between the Parties.

  • The provisions of the CCAct applies only to contracts for Construction Work, which is widely defined, but not for contracts for associated services such as consultants and project management, and for certain types of material supplies.
  • Although section 24 and Part 4 of the Act allows for the suspension of the Works, by section 10 these provisions DO NOT APPLY to a Residential Construction Contracts
  • For Residential Construction Contracts there is specific information that must accompany payment claims and a notice of adjudication for the Act to apply.
  • If a payment claim complies with the requirement of the Act then there are strict processes and timelines for responding to the claim.
  • Once an Adjudication has begun there are strict, (and very short), timelines that must be adhered to.  The Adjudication proceeds to a Determination even if the Respondent is uncooperative.
  • The Adjudication only deals with the matters brought by the Claimant, although disputes can be consolidated but ONLY if all Parties and the Adjudicator give written consent.  There can be parallel adjudications for differing Claims among the same Parties.     
  • A dispute can be referred to adjudication even if the matters and same Parties are the subject of mediation, court, tribunal or other resolution procedures.

CONTACT DETAILS: Please feel free to contact Keith for his C.V. and summary of experience.    tel:  04 499-3015     mble:  021 890 251     e-mail: keith@settlement.co.nz

Keith Huntington - B.Arch, Dip.Urb.Val, Dip Bus.Stud(Disp.Res), FNZIA, FAMINZ(Med), LEADR Registered Architect (RAB# 1372) and NZGBC Homestar™ Practitioner & Assessor (reg# 6868)