{"id":222936,"date":"2023-05-08T15:50:08","date_gmt":"2023-05-08T02:50:08","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=222936"},"modified":"2023-05-12T20:49:31","modified_gmt":"2023-05-12T07:49:31","slug":"construction-contracts-act","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/construction-contracts-act\/","title":{"rendered":"What Does the Construction Contracts Act Cover in NZ?"},"content":{"rendered":"\n

It can be confusing to deal with construction contracts. This is because they may contain niche clauses relating to payments and security interests. The Construction Contracts Act 2002<\/em> provides a process for dealing with payments and disputes between different parties. It is important as it helps regulate the industry and reduces added costs. However, there are parts of the Act that can be confusing. This article will explain what the Construction Contracts Act<\/em> covers in New Zealand. <\/p>\n\n\n\n

What is a Construction Contract?<\/h2>\n\n\n\n

A construction contract is a contract between two parties that applies to all types of construction work. The Constructions Contracts Act<\/em> covers all types of contracts regardless of whether parties negotiate orally or in writing. <\/p>\n\n\n\n

When is a Construction Contract Binding?<\/h2>\n\n\n\n

All contracts must meet the elements of a binding contract<\/a> for it to be legally enforceable. The elements of a binding contract are:<\/p>\n\n\n\n

Unequivocal Offer<\/strong><\/td>An offer is when one party sends another a proposal. This offer must be clear and has to come from you.<\/td><\/tr>
Correct Acceptance<\/strong><\/td>The other party accepts the offer as prescribed in the contract terms. For example, if the acceptance must be via email and they accept the offer by phone, the acceptance may not be binding. However, there are exceptions, such as the postal acceptance rule. <\/td><\/tr>
Consideration<\/strong><\/td>Any contract must have consideration from both parties. Consideration is something of value that you give to one party in return for the promises of the other party. In the case of an auction, the consideration is the money given in exchange for whatever product you were seeking to purchase.<\/td><\/tr>
Intention to Bind<\/strong><\/td>There must also be an intention from both parties for the contract to be binding. For example, if a child bids on an item through their parent\u2019s phone, the parent is not bound to pay for the item as they did not intend to be bound by auction. <\/td><\/tr>
Certainty in the Terms<\/strong><\/td>The terms of a contract must also be certain. This means there is no ambiguity or uncertainty in the terms that either party can dispute.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
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