Quantity Surveyor Agreement (New Zealand)

A Quantity Surveyor (QS) in New Zealand provides professional cost management and procurement services for construction and engineering projects. Core QS services include: preparing Bills of Quantities (BoQ) for tender purposes; cost planning and budget estimates at design stages; tender analysis and contractor selection advice; contract administration including assessment of payment claims under the Construction Contracts Act 2002; valuation of variations and variations negotiations; cash flow forecasting; final account preparation; and dispute resolution support including adjudication and arbitration. New Zealand Quantity Surveyors may be members of the New Zealand Institute of Quantity Surveyors (NZIQS) or the Australian Institute of Quantity Surveyors (AIQS), which sets professional standards and ethical guidelines. The QS Agreement should clearly define whether the QS is engaged on a full-service basis (from concept through to final account) or on a limited-scope basis (e.g., tender documentation only). Scope definition is critical to avoid disputes about what services are included in the agreed fee.

Quantity Surveyor fees in New Zealand are typically structured in one of three ways: as a percentage of the construction contract value (most common for full-service appointments, typically 1–3% depending on project size and complexity); as a lump sum fee agreed at the outset (suitable where the scope is well-defined); or as a time-charge rate (suitable for ad hoc or limited-scope engagements). The NZIQS publishes recommended fee guidelines for its members, though these are indicative rather than mandatory. GST at 15% is payable on QS fees in addition to the base fee. The QS Agreement should specify: the fee basis; any fee caps or maximum fees; the payment milestones (e.g., on completion of cost plan, on tender, during construction, on final account); disbursements (travel, printing, specialist reports) and whether these are included or charged additionally; and the hourly rate for additional services not covered by the base fee. A well-structured fee arrangement incentivises the QS to complete each stage efficiently and gives the client cost certainty for each phase of the project.

Professional indemnity (PI) insurance is essential for Quantity Surveyors in New Zealand because QS services involve giving professional advice on which clients rely — including cost estimates, variations valuations, and payment assessments. If a QS gives negligent advice that causes a client financial loss (for example, a seriously underestimated project budget that results in cost overruns), the client may have a claim against the QS for professional negligence. PI insurance covers the QS's legal liability for such claims, including legal defence costs and any damages awarded. NZIQS members are required to maintain current PI insurance as a condition of membership. The QS Agreement should require the QS to maintain PI insurance of at least a specified minimum amount (commonly NZD $1 million to $5 million depending on the project value) throughout the engagement and for a tail period after completion (typically 6 years to cover the limitation period under the Limitation Act 2010). The client should request a certificate of currency from the QS's insurer before the engagement commences.

A Quantity Surveyor engaged to administer a construction contract in New Zealand has important responsibilities under the Construction Contracts Act 2002 (CCA 2002). Where the QS acts as the contract administrator (often called the engineer in NZS 3910 contracts), they may be responsible for: certifying payment claims and payment schedules; assessing and valuing payment claims served by the contractor; issuing payment schedules within the prescribed timeframes (typically 20 working days under NZS 3910); assessing and negotiating variations; and preparing cost reports. The QS must act impartially when performing functions under the CCA 2002 — they are not merely the client's advocate but have a duty to act fairly and independently when certifying payments and assessing contractor claims. A failure to issue a payment schedule within the required timeframe under the CCA 2002 can result in the client becoming liable to pay the full amount claimed. The QS Agreement should clearly define the QS's role in the payment process and allocate responsibility for CCA 2002 compliance between the QS and the client.

A Quantity Surveyor Agreement (New Zealand) does not legally require a lawyer in New Zealand, and individuals and businesses may draft and execute the document independently. The Companies Act 1993 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified New Zealand lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The High Court of New Zealand has jurisdiction over disputes arising from this type of document, and Companies Office may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.