Commercial & Contractual Advice
We give commercial and contractual advice on a notice, an instruction, a clause or an extension of time claim under your building contract. We work with property owners and contractors on projects across New Zealand.
Overview
When you need contractual advice
Contractual advice is our review of a notice, a clause or a claim for an extension of time. We explain what it means for you. Property owners and contractors use it for a notice, an instruction that might be a variation, or a clause that isn't clear. It's part of our post-contract quantity surveying, which covers the stage after the building contract is signed.
A notice is a formal written message sent under the contract. A variation is a change to the agreed work. An instruction doesn't always say whether it counts as a variation.
Extension of time claims can come from either party, so you may need to make one or answer one. In a heavily amended contract, it may not be clear whether a clause still applies.
What we handle
What commercial and contractual advice covers
We advise on four kinds of contractual question.
Notices and time limits
We explain what your contract requires in a notice, and anything it says about time limits.
Variations and instructions
We look at whether an instruction counts as a variation under the terms of your contract.
Extension of time claims
We check how your contract handles extension of time claims and what it asks of the party making one.
Clauses and contract terms
We work out what a clause asks of each party, and how it fits with the rest of the contract.
In New Zealand
What shapes a construction contract
A standard form is a published contract that a project can adopt. NZS 3910 is one of them, and it's written for building and civil engineering construction. Special Conditions are the part of a contract where a project changes or adds to the standard clauses.
Some laws take priority over the contract. The Construction Contracts Act 2002 says it has effect even if an agreement or contract says otherwise. Where the Act applies, the parties can't contract out of it.
What you get
What it says and what to do next
We tell you what the notice, clause or instruction says and what it could mean for you in cost terms. We also suggest a sensible next step.
When you need a lawyer instead
We're quantity surveyors, not lawyers, and we look at a contract from the commercial side. If a question depends on your legal rights, or the meaning of the contract is in dispute, it's one for a lawyer.
Who this is for
This service is for property owners and contractors with a live building contract.
Our other post-contract services deal with related work. Payment claims and variations covers what extra or changed work is worth. Cost audits test whether a claimed amount is supported. Contract administration is ongoing support for the rest of the project. Disputes and final accounts is for advice on a disagreement, or on the final amount owed under the contract.
How it works
How commercial and contractual advice runs
- 01
Send it through
Send the notice or the question, with the signed contract and any Special Conditions.
- 02
We read it
We go through the notice or question and the clauses it relates to.
- 03
You get a clear answer
We tell you which points matter for your position and which don't.
- 04
More help if it's needed
If the question goes beyond one notice, another of our post-contract services may suit.
Why AMS
Why ask us before you decide
Technical terms explained
We explain technical terms in everyday words, so the advice is easy to act on.
Worked from your actual contract
We read the signed contract, including any Special Conditions, so the advice fits the terms you agreed rather than the published standard form.
Advice before you reply
You can check a notice, instruction or claim with us before you answer it, so you reply knowing what the contract says.
Frequently asked questions
When does the clock start on a contract time limit?
The clock starts when your contract says it does. That might be the day of the event the claim is about, or the day someone became aware of it. Either date can come before the full effect of the event is known. If you miss the time limit, a claim may be reduced or lost.
Is a pay-when-paid clause enforceable in New Zealand?
No, a pay-when-paid or pay-if-paid clause has no legal effect under the Construction Contracts Act. This covers any clause where payment for work done depends on the payer first being paid by someone else. The same applies to a clause that links the due date for payment to when the payer is paid. A clause like that can't be used to hold back a payment that's due.
What does a residential building contract have to say about notices, variations and delays?
A residential building contract has to cover all three once its price reaches the minimum set in the regulations. The Building (Residential Consumer Rights and Remedies) Regulations 2014 require terms on how notices are given. The contract also needs a way to negotiate and agree variations, and terms on how possible delays will be dealt with.
Can you give contractual advice before a contract is signed?
Yes, a second opinion on what you're agreeing to before you sign is part of our procurement and contract advice.
Need a quantity surveyor for your next project?
Send through your plans or a short description of the project and we will come back to you.