The Construction Contracts Act 2002 (CCA) is a major piece of legislation that regulates construction contracts in New Zealand. The act was designed to help ensure that contractors get paid promptly and fairly, and that disputes are resolved quickly and efficiently.
The CCA provides a framework for construction contracts that includes a range of rules and regulations. One key feature of the act is the requirement for payment schedules and progress claims. Under the CCA, contractors are entitled to send payment claims for work that has been completed on the job. These claims must be sent at regular intervals, and must include information about the work that has been completed, the amount being claimed, and the payment due date.
Another important aspect of the CCA is the requirement for adjudication. If a dispute arises between a contractor and a client, either party can apply for adjudication to resolve the issue. The adjudication process is designed to be quick and efficient, with a decision typically made within a few weeks of the application being made.
The CCA also includes provisions relating to retentions. Retentions are a portion of the contract price that is held back by the client until the work has been completed to their satisfaction. Under the CCA, retentions must be held in a separate trust account, and contractors are entitled to receive regular statements showing how much is being held and how it is being managed.
The CCA also sets out rules relating to the termination of contracts. If a contract is terminated, either party may be entitled to claim for damages or losses suffered as a result. The act provides guidance on how these claims can be made and what types of damages may be recoverable.
Overall, the Construction Contracts Act 2002 is an important piece of legislation that provides a framework for construction contracts in New Zealand. It helps to ensure that contractors are paid fairly and promptly, and that disputes are resolved efficiently. If you are involved in the construction industry in New Zealand, it is important to be familiar with the rules and regulations set out in the CCA.