MOEShortFormAgreementfor

ConsultantEngagement:Guidance Note

(Contract3)

This contracttemplateis based onthe ShortFormModel Conditionsof Engagement preparedby IPENZ withVariations developed andapprovedbytheMinistryof Education(theMinistry). Itisfor theengagementofconsultantsinpropertyprojects, andsuitable foruseinbothMinistryandBoard of 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 designedso thatyourspecificcontract details canbeentered inthefrontsection with thetermsandconditionsof the contractin the followingpages.You must not changetheterms andconditions ofthe contract. Ifyouhave any questions pleasecontactyourPropertyAdvisororemail PropertyHelpat .

Whento usethiscontract

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

Type ofwork: / Construction professional services.
Value: / Under$50,000excludingGST
Suitablefor: /
  • Technical consultancyservicesand advisoryservices
  • Advisoryservicesaspart of development oftheschool’s10YPP orother plans.

Notsuitablefor: / Complex, high value/riskconsultancyservicessuchas engineeringanddesign. If your projectrequirestheseservices, usetheConditionsofContractfor ConsultancyServices(Contracttemplate4).
For any professional services covering multiple projects where expenditure is near the $50,000 level and likely to go over due to variations.

Gettingstarted

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

LegalAuthority

  • The only“person”withthelegalauthority to enterintoacontractonbehalfoftheschool is the Board,or someonetheBoardhas formallyappointed ataBoardmeetingtoact ontheir behalf.
  • Thepersonor people authorisedto dealwith thebuildingprojectonthe Board’sbehalf shouldberecorded intheBoardminutesforthemeetingtheBoardmadethe decision.
  • It isimportanttohavedetails ofthe constructionworkagreedandthecontractsigned, beforetheConsultantstartsanyworkontheproject.

ExecutingtheContract

  • Check thatyouhavethe latestversionofthe contractavailable from the PropertyToolbox. TheConsultantshouldsignthe Contractbeforethe Board’s authorised signatory(ies)signs, so youcancheckthatnoalterations havebeenmadebythe Contractor beforetheBoardsigns it.
  • TheConsultantshouldinitial everypageof the contract,toconfirm theyhavereadand agreed towhat isonthepage. This can beimportantifdisagreementsariselater.
  • Beforeanypaymentsaremade,checkthattheConsultanthas signedthe Contractand you haveconfirmedthat:

otheyhavedoneall workyouarepayingfor,

othe workhas been done tothe standardrequired.

Conflictof Interest

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

  • the Contractor, includingtheContractor’s directors andseniormanagers,and
  • anymemberof theBoardor anystaffat theschool.

IntheContractitself, the Contractor is alsorequiredtodeclare:

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

MakingVariationstotheContract

IftheproposedVariationislessthan10%oftheProjectbudgetandwillbepaidforbyfundsheldby theschoolforcontingencypurposes(i.e.outsidetheContractPrice),theBoardcanapprovethe Variation.IftheVariationisoutsidetheseguidelines, thentheVariationrequirespre-approvalfrom theMinistryandyouwillneedtocontactyourPropertyAdvisor.Werecommendcontactingyour

PropertyAdvisorforguidance ifyouareindoubt.

CompletingtheContractDetails

It isimportantthatyoureadoverthewholecontractto ensureyouunderstand whatyouare committingtheschoolto, andwhatyouareentitled toexpectfrom your Consultant.

Youshouldkeep a record of this contractstored for referenceduringthetimethattheConsultant carriesoutthe services,andfortenyears afterwards in caseanydefectsin the services arediscovered later.As thereisa highprobability thatkeypeoplein the schoolwill change overthattime,itis importantto 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 andany 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).
Note: TheBoardofTrusteesisthelegalbodythathastheauthoritytoenter intocontractsonbehalfofthe school Select the correct Client.
Where the school is the client insert theschool’snamenextto“Boardof Trustees”on thecoverpageof
the Contract.
Consultant / It is important to use the full legal name of the Consultant. Is it a company, individual, oracompany tradingunderadifferentname?
InserttheConsultant’snamenextto‘Consultant’onthecoverpageof the Contract.

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