06/04/2026
CCNZ are putting out weekly updates regarding the Fuel availability et al. If our members aren't receiving these and would like to, please let me know.
This is a snippit from last week:
Fuel Update #5
General update
Government remains confident in the quality of the data they are receiving and the current fuel security assessment.
They have asked us to provide feedback on two questions:
• What regulatory barriers are leading to inefficient fuel use (i.e., having to cart construction fill and waste long distances).
• What useful things could fuel companies do before the government has to resort to mandatory measures (I.e., signs up at service stations where fuel stocks are short).
Any thoughts on these two questions would be appreciated, if you could send these to your Regional Manager, Comms and Advocacy Manager Fraser May or myself.
There have been some regional challenges with fuel supply, particularly in farming and horticulture areas including Cromwell, Central Otago, and Gisborne. There has now been a change in allocation at terminals from monthly to weekly, with the Commerce Commission overseeing allocation fairness.
The government is now considering priority bands for fuel allocation in the event of New Zealand moving to levels 3 or 4. CCNZ is preparing a submission on this.
Interaction with the PM
Last night, CCNZ President David Howard, CCNZ Communications and Advocacy Manager Fraser May, and I, along with other industry leaders, met with Prime Minister Rt. Hon Christopher Luxon. We stressed:
• The need for work programmes to continue (and the significant economic and social consequences of pausing, delaying, or cancelling projects).
• The need for clients, both central and local government, to act in good faith and act responsibly and proportionately.
• The need for early engagement between contractor and client to collectively chart a way through these current challenges.
The Prime Minister was fully engaged on this and invited us to keep in close contact as this issue unfolds.
NZTA guidance
NZTA has put a considerable amount of time and effort into providing a helpful guidance document covering NZS391X Contracts and Alliance Agreements for both Capital Projects and Maintenance Operations, which has been shared with us today. Download the guidance here>>
This guidance is grounded in existing contractual mechanisms and designed to give industry greater certainty about how NZTA will engage as this situation evolves, and sets a good standard for client behaviour.
The guidance will continue to be refined as NZTA receive feedback and learn through implementation.
Any questions should be directed to [email protected].
Further advice from Dentons
It is difficult to provide any generic clauses that deal with the myriad of issues different contractors might face.
The simple advice for contractors is:
1. Contractors should seek to have price fluctuations included in the contract (Specific Condition 12.8 in NZS 3910:2013; and 9.6 in NZS 3910:2023).
The box that cost fluctuations shall be paid should be ticked rather than cost fluctuations not being paid. The parties can then negotiate/discuss what mechanism may apply and, if necessary, what items, such as fuel or bitumen, that it will apply to (and how).
2. Contractors should also separately tag their position regarding cost fluctuations, so that their stance is clear. It could be along the lines that if fuel prices increase by a certain percentage from the price set at the date of tendering (or possibly contract award) they will get paid for the cost increase.
It could possibly be treated as a Variation, albeit that Principals will be concerned that Variations entitle the Contractor to more than just an increase in the base cost and will likely want to limit any fluctuation to just this increased cost, and not margin.
This should lead to a discussion about what can be mutually agreed. The principal will usually hold the pen and can draft a clause.
The above approach should in most cases be all that contractors need. If contractors in a specific situation want further advice, Denton’s is happy to assist.
Market intelligence
Any feedback from members on what you are seeing in the market (supply, prices, behaviours, etc) would be welcome so we can feed this into the government process. Please contact your Regional Manager, Communications and Advocacy Manager Fraser May, or myself to feed this back.
Kind regards
Alan Pollard
Chief Executive, Civil Contractors New Zealand
