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Contract Administration CONS 6812 - EXERCISE NO. 2 Thursday 27th July 2017
The statements assume a construction contract formed using NZS 3910 conditions of contract
Statement No.1
The Engineer owes a duty of care to the Principal but not to the Contractor. If the Engineer,
a firm of architects, delays the work on site by supplying drawings late and causing the Contractor
economic loss, the Contractor can recover its losses as a Variation direct from the Principal
and the Principal can recover from the Engineer, 2.7.7* refers. The Engineer 6.1.4 Every
appointment under 6.1 shall be of one natural person only, not being a body corporate or firm.
TRUE or FALSE?
Statement No.1 Statement No.2 n/a Statement No.3 n/a

TRUE TRUE TRUE 1

FALSE FALSE FALSE 2
TRUE FALSE TRUE 3
TRUE TRUE FALSE 4
FALSE FALSE TRUE 5
TRUE FALSE FALSE 6
FALSE TRUE TRUE 7
FALSE TRUE FALSE 8

* 2.7.7 makes the Engineers action or inaction as the Principals agent a Variation under the
contract which would otherwise be a beach of the contract [operating under the prevention
principle#]. The Principal can recover its losses from the Engineer either under the terms of
his/her engagement as breach of contract or common law in the tort of negligence.# a long
established principle under English law whereby a party may not enforce a contractual
obligation against the other party where it has prevented the other party from performing that
obligation. This explanation may help confirm why Property & Construction Law CONS 5818 is a
precursor to this Course