CAPABILITY
PROFILE
Third Party Roles in
Construction Contracts
Construction contracts, such as
the FIDIC Red Book and NZS3916
prescribe the appointment of a
third party to act as an impartial
authority to make determinations
and resolve disputes as they arise
between the Contractor and the
Principal. Under these forms of
contract the third party role is
defined as the ‘Engineer’.
It is recommended that the
‘Engineer’ be engaged no later
than the start of the contract
procurement phase. Working
closely with an established design/
engineering team, it is important
For further information please email: stuart.bailey1@WorleyParsons.com
www.worleyparsons.com
that an ‘Engineer’ understands the
project intentions behind each of
Why third party
the proposed contracts. roles exist in
Appointing an ‘Engineer’ to act in
contracts?
›› To address the need
this capacity provides invaluable
for impartiality,
support throughout the life of the
project providing businesses with a ›› Ensure the philosophy
high degree of surety that the right of the head contract is
maintained and adhered to,
decisions are being made for the
right reasons. ›› Provide clear
communication to both
This service is especially valuable
parties on every issue,
for an organisation new to
›› Provide interpretation
managing payments under the
of the contract, scope
Construction Contracts Act 2002
and specification.
or managing contractual claims.
 CAPABILITY
PROFILE

Common tasks of a third

party role in contracts
üüAdvising the obligations under
contract in plain english
üüAdvise change control procedures
It is important to differentiate the ‘Engineer to contract’ role üüReview contractual claims
from that of project management, discipline engineering, or üüIssue instructions
acting solely on behalf of the Principal. An ‘Engineer’ must have
üüIssue variations
an in-depth understanding of contract mechanisms and their
application so that later, should any challenge arise; decisions üüChairing construction
previously made can be demonstrated as being fair and reasonable. progress meetings
If you would like to know more about third party roles in contracts üüReview construction schedule
and how this is supported by WorleyParsons wider engineering üüReview construction
base then please email the contact referenced below. drawings by contractor
üüReviewing contractors
International Contract Forms payment claims
The following are examples of typical contracts that include the
üüCertifying payments
requirement for an impartial third party role.
üüReviewing progress and
Form of Contract Third Party Role ‘Title’ preparing monthly reports
NEC 3 Project Manager üüUndertake site visits
International
FIDIC Red Book Engineer and safety audits
üüParticipate and review all testing
NZS3910 Engineer and inspection as requested
New Zealand NZS3916 Engineer
üüIssuing schedules of defects
NZIA SCC:2011 Engineer
üüCertifying practical completion
AS4000 Superintendent
Australia AS4902 Superintendent
ABIC Architect

JCT DB 05 Employer’s Agent

United Kingdom
NEC 3 Project Manager

AIA B101 – 2007 Architect

United States
CD240 Architect/Engineer

Canada CCDC 2 Consultant

For further information please email: stuart.bailey1@WorleyParsons.com

www.worleyparsons.com