MOEConditionsofContract for

ConsultancyServices:Guidance Note

(Contract4)

This contracttemplateis based onthe Conditionsof ContractforConsultancyServices(CCCS)with SpecialConditionsdeveloped andapproved bytheMinistryof Education(theMinistry). Itisfor the engagementofconsultantsin propertyprojects,andsuitable foruseinbothMinistryandBoardof Trustees(Board)engagedprojects.

Thesecontracttemplateswillhelp theMinistryandBoards choosethe correctcontractwiththeright terms andconditionsforeachengagement,remove inconsistencies,andgivecertaintytocontractors andconsultantsprovidingservicestotheMinistryandBoards. Thesecontracttemplatesare alternativestotheGovernmentModel Contracts,which are notdesigned tobeused for construction projects.

This contractis designedsothatthe Ministryapprovedvariations tothe CCCSterms andconditions are contained inSpecial Conditions Part A andPartB.Specificcontractdetailscanbeentered in the Special ConditionsPartA, andtheAppendicestothecontract. Youmust not changetheterms andconditions of thecontract. If you have any questions pleasecontactyour PropertyAdvisor or emailPropertyHelpat .

Whento usethiscontract

Thefollowingareguidelines forwhenyoushouldusethe contract;youmayfindthat thiscontractis suitableeventhoughthework fallsoutside someofthe guidelines. Ifyouare in doubt,please contactyourPropertyAdvisor.

Type ofwork: / Construction related consultancyservices,particularlycomplexworkinvolvingadesign
element.
Value: / Over$50,000
Suitablefor: / Anyconsultancyand advisoryservicesforpropertyprojects,particularlycomplex
workinvolvingadesignelement.
Notsuitablefor: / If theservicesrequired arefor aone-off,technical or advisory services with low complexity and value under $50,000 then itmaybemoresuitable tousethe
IPENZ ShortFormAgreement (Contract 3).
Examples: / Engineering, architectural,or designservices.

Gettingstarted

Because youareactingonbehalf ofthe community, usingpublic money,youneedtouseprocesses that canbeverified byyour auditor andtheMinistry.Evenwhenyouknowandtrustthe personwhowillbedoingthework,therearecertainbasicsthatyouneedtorememberwhendealingwith a buildingcontractforyour school.

LegalAuthority

  • The only“person”withthelegalauthority to enterintoacontracton behalfoftheschool is the Board,or someonetheBoardhas formallyappointed ataBoardmeetingtoact ontheir behalf.
  • Thepersonor people authorisedto dealwith thebuildingprojectonthe Board’sbehalfshouldberecorded intheBoardminutesforthemeetingtheBoardmadethe decision.
  • It isimportanttohavedetails ofthe constructionworkagreedandthecontractsigned,beforetheContractor startsanyworkontheproject.

ExecutingtheContract

  • Check thatyouhavethe latestversionof the contractavailable from the PropertyToolbox. TheConsultantshouldsignthe Contractbeforethe Board’s authorisedsignatory(ies)signs, so youcancheckthatnoalterationshavebeenmadebythe ConsultantbeforetheBoardsignsit.
  • TheConsultantshouldinitial everypageof the contract,toconfirm theyhavereadand agreed towhat isonthepage. This can beimportantifdisagreementsariselater.
  • Beforeanypaymentsaremade,checkthattheConsultanthas signedthe Contractand you haveconfirmed that:

otheyhavedoneall workyouarepayingfor,

othe workhas been done tothe standardrequired.

Conflictof Interest

TheConsultantandallmembersofthe Boardarerequired to discloseanylikelyconflictof interestin writingto theBoard beforesigningtheContract.Aconflict ofinterestincludes anyfamilyor business relationshipbetween

  • the Consultant, includingtheConsultant’s directors andseniormanagers,and
  • anymemberof theBoardor anystaffat theschool.

IntheContractitself, the Consultantisalsorequired todeclare:

  • thattheyarenotawareofanyfurtherconflictof interest thathasnotalreadybeen disclosed in writingto the Board.
  • anyconflictthatarisesafter signingtheContract.
  • anyclaimsbytheMinistry or anyschoolBoardagainstthe Consultant(includingamajority shareholderor director)inrelationtoanyconsultancy workof asimilarnature.

MakingVariations totheContract

If the proposed Variationisless than10%oftheProjectbudgetandwillbepaidfor byfunds heldby the schoolforcontingency purposes(i.e. outsidetheContractPrice),theBoardcanapprovethe Variation. Ifthe Variationisoutsidetheseguidelines, then theVariationrequirespre-approvalfrom the Ministryand youwill needtocontactyourPropertyAdvisor.Werecommendcontacting your PropertyAdvisor for guidanceif youareindoubt.

CompletingtheContractDetails

It isimportantthatyoureadoverthewholecontractto ensureyouunderstand whatyouare committingtheschoolto, andwhatyouareentitledtoexpectfrom your Consultant.

Youshouldkeep a record of this contractstored for referenceduringthetime thattheConsultant carriesoutthe services,andfortenyears afterwards in caseanydefectsin the Contract Works arediscovered later. As thereisa highprobability thatkeypeoplein the schoolwill change overthattime,itisimportantto makesurethat all propertydocumentationiskept together, and that theBoardandPrincipal haveclearrecordsofwheretheyarestored andhowtoaccessthem. This shouldincludeanypasswordsorothersecurity measures.

The form of agreement document contains guidance note and colour coded text to help you to complete the document with the relevant information required. The guidance notes and any options provided in the document which are not required should be deleted before the agreement is issued and signed.

WhoaretheParties?

Client / The contract template isforuse by either the Ministry or Board of Trustees(Board).
TheBoardof Trusteesisthelegal bodythat hasthe authorityto enter
intocontractsonbehalfofthe school.
Consultant / It isimportanttousethefulllegal nameof theConsultant. Is ita
company, individual, oracompany tradingunderadifferentname

Whatarethespecificprovisions of this Contract?Special Conditions PartA

Additional
Documentstothe
Agreement / It isunlikely thatanyadditional documentswillberequired. However if these need to be specified these should be specified in Schedule 1, clause 13 of the Form of Agreement for Contract 4.
Limitation of Liability / The limitation of Liability is five times the fee to a maximum of $2,000,000. This value cannot be amended.
Duration of Liability / TheContractprovidesfor astandardperiodofsixyears from completion of the services.
Insurance(Public
Liability) / The required level of Public Liability insurance is $5,000,000 per incident.