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New Zealand guide
New Zealand / NZS 3910 / Payment and completion

How do payment, defects and completion work under NZS 3910 in New Zealand?

Under NZS 3910:2013 the contractor's bond is due within 2 months of acceptance, and defects are notified within the 3 months defects notification period. The final payment claim is lodged within 1 month of the defects period ending, and the final payment schedule is issued within 20 working days.

The duties, in the library's order

DutyWindow and sectionIf missed
Make a progress claim on the cadence the contract states1 monthcl 12.1.2, 12.2.1, 12.2.8a breach of contractDisputes
Provide the contractor's bond within 2 months2 monthscl 3.1.2-3.1.7the claim is barredDisputes
Notify defects within the 3 months defects notification period3 monthsDZ cl 11.1, 11.2.1no penalty statedDisputes
Release retention within 10 working days of practical completion (or the defects period ending)10 working dayscl 12.3.3; DZ 12.3.4, 12.3.7a breach of contractDisputes
Lodge the final payment claim within 1 months of the defects period ending1 monthcl 12.4.1the claim is barredDisputes
Issue the final payment schedule within 20 working days20 working dayscl 12.5no penalty statedDisputes
Submit the final account within 3 months of practical completion3 monthscl 9.11the claim is barredDisputes

What the library notes on each duty

Quoted a whole sentence at a time from the library's note on each row.

Make a progress claim on the cadence the contract states

cl 12.1.2, 12.2.1, 12.2.8 · 1 month · a breach of contract

  • Claims at least monthly; the 2013 edition sets the payment schedule 12 Working Days after service and payment 17 Working Days after service (both folded in here).

Provide the contractor's bond within 2 months

cl 3.1.2-3.1.7 · 2 months · the claim is barred

    Notify defects within the 3 months defects notification period

    DZ cl 11.1, 11.2.1 · 3 months · no penalty stated

    • Defects Notification Period, 3 Months from practical completion unless specified (Auckland Transport's Panel 3 special conditions instead set 12 Months).
    • A defect notice must be given during the DNP or within 5 Working Days after; remedy within 5 Working Days.
    • Read from the DZ draft and AT Panel 3, not the published 2023 text.

    Release retention within 10 working days of practical completion (or the defects period ending)

    cl 12.3.3; DZ 12.3.4, 12.3.7 · 10 working days · a breach of contract

    • Excess released at practical completion; balance released after the Defects Notification Period less outstanding work; the remainder within 10 Working Days after the Final Completion Certificate (recorded here).
    • DZ cl 12.3.4 is draft only.

    Lodge the final payment claim within 1 months of the defects period ending

    cl 12.4.1 · 1 month · the claim is barred

    • 1 Month after the Final Completion Certificate (2013); the DZ draft instead runs from the later of the FCC and the Final Account.

    Issue the final payment schedule within 20 working days

    cl 12.5 · 20 working days · no penalty stated

    • 2013 edition: 20 Working Days (Auckland Transport's Panel 3 instead sets 35).
    • The DZ draft splits this into a provisional 20 WD, a final 45 WD, and payment 10 WD later - the 2013/DZ split is ambiguous in the source; the 2013 figure is recorded as primary.

    Submit the final account within 3 months of practical completion

    cl 9.11 · 3 months · the claim is barred

    • Interim Final Account due within 3 Months of practical completion by default (recorded here); the Final Account is due 20 Working Days after the Final Completion Certificate, and the Independent Certifier decides it if unagreed after 3 Months.

    What this page is, and is not

    It is the section text this library holds for New Zealand's Construction Contracts Act 2002 (NZ), NZS 3910:2013 and Health and Safety at Work Act 2015, with the window and the consequence. The NZS 3910:2023 rows are read from secondary summaries of the draft, not the published text. It is not legal advice, and it is not a substitute for reading the Acts, the contract you signed and any special conditions.

    These pages set out the duties the library holds for a New Zealand job.

    No library of law is complete, and Demiton never says this one is. An obligation the library does not hold, and you did not add, is not protected. You can add your own to any job.

    Common questions

    What does cl 12.1.2, 12.2.1, 12.2.8 require?

    Make a progress claim on the cadence the contract states (cl 12.1.2, 12.2.1, 12.2.8). Window: 1 month. Consequence: a breach of contract.

    What does cl 3.1.2-3.1.7 require?

    Provide the contractor's bond within 2 months (cl 3.1.2-3.1.7). Window: 2 months. Consequence: the claim is barred.

    What does DZ cl 11.1, 11.2.1 require?

    Notify defects within the 3 months defects notification period (DZ cl 11.1, 11.2.1). Window: 3 months. Consequence: no penalty stated.

    What does cl 12.3.3; DZ 12.3.4, 12.3.7 require?

    Release retention within 10 working days of practical completion (or the defects period ending) (cl 12.3.3; DZ 12.3.4, 12.3.7). Window: 10 working days. Consequence: a breach of contract.

    What does cl 12.4.1 require?

    Lodge the final payment claim within 1 months of the defects period ending (cl 12.4.1). Window: 1 month. Consequence: the claim is barred.

    What does cl 12.5 require?

    Issue the final payment schedule within 20 working days (cl 12.5). Window: 20 working days. Consequence: no penalty stated.