NZS 3916 is a popular design and build contract in New Zealand. While it streamlines accountability by giving the contractor both design and construction responsibility, its implementation in modular projects introduces unique challenges.
Modular projects don’t follow the same flow as traditional site based builds. The design is often finalized early, fabrication begins offshore, and delivery depends heavily on logistics, weather, and port clearance. These conditions often stretch NZS 3916’s assumptions about design liability and construction timing.
In practice, most modular projects experience ongoing design development particularly around compliance, services coordination, and client driven changes. Under NZS 3916, this often creates grey areas around:
“The modular model compresses design, procurement, and production into a narrow time frame and NZS 3916 doesn’t always keep up.”
From my own experience on a 7 storey modular apartment project using NZS 3916, some key pain points were:
NZS 3916 can work well for modular, but only with adaptations that reflect the real-world nature of prefabrication. It’s time we evolve our contract frameworks to match modern delivery methods.
Topics: Quantity Surveying | Modular Construction | Cost Control | Construction Contracts