CONSTRUCTION CONTRACT AGREEMENT
CONSTRUCTION CONTRACT AGREEMENTEXECUTION1. DEFINITIONS AND INTERPRETATION2. PRE-CONSTRUCTION REQUIREMENTS3. PROJECT SCOPE3. CONTRACT PRICE AND PAYMENT4. PROJECT TIMELINE5. VARIATIONS AND PRICE ADJUSTMENTS6. CONTRACTOR'S OBLIGATIONS AND BUILDING ACT COMPLIANCE7. CLIENT'S OBLIGATIONS8. INSURANCE, LIABILITY AND INDEMNITY9. DEFECTS LIABILITY10. DISPUTE RESOLUTION11. TERMINATION12. FORCE MAJEURE13. CONSUMER PROTECTION AND MANDATORY DISCLOSURE14. PROJECT ADMINISTRATION15. QUALITY MANAGEMENT16. FINANCIAL SECURITY17. INTELLECTUAL PROPERTYSCHEDULES AND APPENDICESSCHEDULE A: PROJECT SPECIFICATIONSSCHEDULE B: PAYMENT SCHEDULESCHEDULE C: LABOUR RATESSCHEDULE D: DRAWINGS LISTSCHEDULE E: SPECIFICATIONSSCHEDULE F: KEY PERSONNELSCHEDULE G: INSURANCE REQUIREMENTSSCHEDULE H: FORMS AND TEMPLATES20. GST PROVISIONS21. CONFIDENTIALITY22. ELECTRONIC TRANSACTIONS AND COUNTERPARTSDOCUMENT CONTROLMODIFICATION GUIDELINESEXAMPLES
EXECUTION
IN WITNESS WHEREOF the parties have executed this Agreement as a deed intending to be legally bound:
For and on behalf of
Company Registration No:
[CONTRACTOR NAME]Company Registration No:
[INSERT]Director Signature
Print NameDate:
DD/MM/YYYY[optional - if 2 directors] Director/Authorised Signatory SignaturePrint NameDate:
DD/MM/YYYYWitness:
Signature
Full NameOccupation
Line 1SuburbPostcodeCountryAddress
For and on behalf of
Company Registration No: [INSERT]
[CLIENT NAME]Company Registration No: [INSERT]
Director Signature
Print Name
Date:
Date:
Director/Authorized Signatory Signature
Print Name
Date:
Date:
DD/MM/YYYYWitness:
Signature
Full Name
Occupation
Address
Notes:
- Each party must execute this document as a deed
- Company execution requires two directors, or one director and one witness
- Electronic execution must comply with Contract and Commercial Law Act 2017
- Each page must be initialed by all signatories
- Any amendments must be initialed by all signatories
1. DEFINITIONS AND INTERPRETATION
1.1 Definitions
In this Agreement, unless the context otherwise requires:
In this Agreement, unless the context otherwise requires:
a) "Agreement" means this construction contract including all schedules and annexures
b) "Building Code" means the New Zealand Building Code as defined in the Building Act 2004
c) "Certificate of Practical Completion" means the certificate issued by the Contract Administrator confirming Practical Completion
d) "Contract Administrator" means the person appointed by the Client to administer this Agreement
e) "Contract Documents" means:
- This Agreement
- The Drawings
- The Specifications
- Schedule of Quantities
- Approved variations
- This Agreement
- The Drawings
- The Specifications
- Schedule of Quantities
- Approved variations
f) "Contract Price" means the sum stated in clause 3.1, as adjusted under this Agreement
g) "Date for Practical Completion" means the date specified in clause 4.1, as adjusted under this Agreement
h) "Date of Practical Completion" means the date certified in the Certificate of Practical Completion
i) "Defects Liability Period" means the period specified in clause 9.1
j) "Drawings" means the drawings listed in Schedule D
k) "Extension of Time" means an extension to the Date for Practical Completion granted under clause 4.2
l) "Force Majeure Event" means an event defined in clause 12.1
m) "Practical Completion" means the stage when:
- The Works are complete except for minor defects
- All required certifications have been obtained
- The Works are fit for occupation and use
- The Works are complete except for minor defects
- All required certifications have been obtained
- The Works are fit for occupation and use
n) "Program" means the construction program prepared under clause 4.3
o) "Site" means the land and other places made available by the Client for the Works
p) "Specifications" means the specifications listed in Schedule E
q) "Variation" means any change to the Works as defined in clause 5.1
r) "Works" means the whole of the work to be carried out under this Agreement
1.2 Interpretation
In this Agreement, unless the context otherwise requires:
In this Agreement, unless the context otherwise requires:
a) References to clauses and schedules are to clauses and schedules of this Agreement
b) Headings are for convenience only and do not affect interpretation
c) The singular includes the plural and vice versa
d) A reference to:
- A person includes a company, partnership, joint venture, association, corporation or other body corporate
- A party includes the party's executors, administrators, successors and permitted assigns
- A statute, regulation or provision of a statute or regulation includes any amendment, replacement or re-enactment
- Money is to New Zealand dollars, unless otherwise stated
- A person includes a company, partnership, joint venture, association, corporation or other body corporate
- A party includes the party's executors, administrators, successors and permitted assigns
- A statute, regulation or provision of a statute or regulation includes any amendment, replacement or re-enactment
- Money is to New Zealand dollars, unless otherwise stated
e) "Including" and similar expressions are not words of limitation
f) Where time is to be calculated by reference to a day or event, that day or the day of that event is excluded
g) If a word or phrase is defined, other grammatical forms have corresponding meanings
h) If any word or phrase is given a defined meaning, any other part of speech or grammatical form of that word or phrase has a corresponding meaning
i) A provision of this Agreement must not be construed to the disadvantage of a party merely because that party was responsible for the preparation of the Agreement or the inclusion of the provision
1.3 Order of Precedence
In the event of any inconsistency between the Contract Documents, the order of precedence shall be:
a) This Agreement
b) Special Conditions (if any)
c) Specifications
d) Drawings
e) Other Contract Documents
In the event of any inconsistency between the Contract Documents, the order of precedence shall be:
a) This Agreement
b) Special Conditions (if any)
c) Specifications
d) Drawings
e) Other Contract Documents
2. PRE-CONSTRUCTION REQUIREMENTS
2.1 Site Inspection and Conditions
a) The Contractor acknowledges that before entering this Agreement, they have:
- Inspected the Site and surroundings
- Considered all information about the Site provided by the Client
- Satisfied themselves as to Site conditions and access
- Assessed all risks and contingencies
a) The Contractor acknowledges that before entering this Agreement, they have:
- Inspected the Site and surroundings
- Considered all information about the Site provided by the Client
- Satisfied themselves as to Site conditions and access
- Assessed all risks and contingencies
b) The Contractor accepts responsibility for:
- Interpretation of Site information
- Assessment of ground conditions
- Identification of any Latent Conditions
- Interpretation of Site information
- Assessment of ground conditions
- Identification of any Latent Conditions
c) No claim by the Contractor arising from Site conditions will be accepted except for:
- Latent Conditions as defined in clause 2.2
- Conditions materially different from those reasonably foreseeable
- Latent Conditions as defined in clause 2.2
- Conditions materially different from those reasonably foreseeable
2.2 Latent Conditions
a) "Latent Condition" means any physical condition on the Site which:
- Could not reasonably have been anticipated by an experienced contractor
- Differs materially from conditions reasonably foreseeable
- Will result in additional cost or time
a) "Latent Condition" means any physical condition on the Site which:
- Could not reasonably have been anticipated by an experienced contractor
- Differs materially from conditions reasonably foreseeable
- Will result in additional cost or time
b) If a Latent Condition is encountered, the Contractor shall:
- Promptly notify the Contract Administrator
- Provide details of the condition
- Provide an estimate of additional cost and time
- Promptly notify the Contract Administrator
- Provide details of the condition
- Provide an estimate of additional cost and time
c) The Contract Administrator shall determine any:
- Extension of Time
- Cost adjustment
- Variation required
- Extension of Time
- Cost adjustment
- Variation required
2.3 Design Responsibility
a) Where the Works include design elements, the Contractor:
- Warrants design fitness for purpose
- Maintains professional indemnity insurance
- Accepts full design responsibility
a) Where the Works include design elements, the Contractor:
- Warrants design fitness for purpose
- Maintains professional indemnity insurance
- Accepts full design responsibility
b) The Contractor shall:
- Review all design documents
- Report any errors or inconsistencies
- Obtain necessary approvals
- Review all design documents
- Report any errors or inconsistencies
- Obtain necessary approvals
2.4 Commencement Requirements
Before commencing the Works, the Contractor shall:
a) Obtain all necessary permits and consents
Before commencing the Works, the Contractor shall:
a) Obtain all necessary permits and consents
b) Provide:
- Construction Program
- Health and Safety Plan
- Quality Management Plan
- Environmental Management Plan
- Traffic Management Plan (if required)
- Construction Program
- Health and Safety Plan
- Quality Management Plan
- Environmental Management Plan
- Traffic Management Plan (if required)
c) Submit evidence of:
- Required insurances
- Performance security
- Professional registrations
- Required insurances
- Performance security
- Professional registrations
d) Establish:
- Site facilities
- Temporary services
- Security measures
- Environmental controls
- Site facilities
- Temporary services
- Security measures
- Environmental controls
2.5 Documentation Requirements
The Contractor shall maintain and submit:
a) Construction documentation:
- Shop drawings
- As-built drawings
- Material specifications
- Test certificates
The Contractor shall maintain and submit:
a) Construction documentation:
- Shop drawings
- As-built drawings
- Material specifications
- Test certificates
b) Quality records:
- Inspection reports
- Test results
- Compliance certificates
- Inspection reports
- Test results
- Compliance certificates
c) Progress records:
- Daily reports
- Progress photographs
- Meeting minutes
- Daily reports
- Progress photographs
- Meeting minutes
d) Safety documentation:
- Hazard registers
- Incident reports
- Safety meeting records
- Hazard registers
- Incident reports
- Safety meeting records
3. PROJECT SCOPE
2.1 The Contractor agrees to carry out and complete the Works in accordance with the Contract Documents.
2.2 The Works comprise: [Detailed description of construction works]
2.3 The following items are specifically excluded from the Works: [List exclusions]
3. CONTRACT PRICE AND PAYMENT
3.1 Contract Price
The Client agrees to pay the Contractor the sum of NZD
The Client agrees to pay the Contractor the sum of NZD
[AMOUNT] (excluding GST) (the "Contract Price").3.2 Payment Claims and Schedules (Construction Contracts Act 2002)
a) The Contractor shall submit payment claims that:
- Are in writing
- Identify the contract
- Identify the relevant period
- State a claimed amount and due date
- Indicate how the amount was calculated
- State that it is made under the Construction Contracts Act 2002
a) The Contractor shall submit payment claims that:
- Are in writing
- Identify the contract
- Identify the relevant period
- State a claimed amount and due date
- Indicate how the amount was calculated
- State that it is made under the Construction Contracts Act 2002
b) The Client shall respond with a payment schedule within 20 working days that:
- Is in writing
- Identifies the payment claim
- States a scheduled amount
- Indicates how any difference was calculated
- Provides reasons for any difference
- Is in writing
- Identifies the payment claim
- States a scheduled amount
- Indicates how any difference was calculated
- Provides reasons for any difference
c) If no payment schedule is provided, the claimed amount becomes payable in full
3.3 Payment Schedule
a) Deposit: [X]% upon signing this Agreement
b) Progress payments: As detailed in Schedule B
c) Final payment: [X]% upon Practical Completion
d) Retention: [X]% held for defects liability period
a) Deposit: [X]% upon signing this Agreement
b) Progress payments: As detailed in Schedule B
c) Final payment: [X]% upon Practical Completion
d) Retention: [X]% held for defects liability period
3.4 Payment Terms
a) Due date for payment is 20 working days after a payment claim is served
b) Interest on overdue payments shall accrue at [X]% per annum
c) The Client has no right to withhold payment except as permitted by:
- A valid payment schedule
- The Construction Contracts Act 2002
- This Agreement
a) Due date for payment is 20 working days after a payment claim is served
b) Interest on overdue payments shall accrue at [X]% per annum
c) The Client has no right to withhold payment except as permitted by:
- A valid payment schedule
- The Construction Contracts Act 2002
- This Agreement
4. PROJECT TIMELINE
4.1 Commencement and Completion
- Commencement Date:
[DATE]
- Target Completion Date:
[DATE]
4.2 Extensions of Time
The Contractor shall be entitled to reasonable extensions of time for:
a) Variations requested by the Client
b) Force majeure events
c) Adverse weather conditions
d) Any delay caused by the Client or their agents
The Contractor shall be entitled to reasonable extensions of time for:
a) Variations requested by the Client
b) Force majeure events
c) Adverse weather conditions
d) Any delay caused by the Client or their agents
5. VARIATIONS AND PRICE ADJUSTMENTS
5.1 Variation Definition
A variation means any change to the Works including:
a) Additional or reduced scope
b) Changes to materials or quality
c) Changes to dimensions or position
d) Changes to sequence or timing
e) Changes due to legislative requirements
A variation means any change to the Works including:
a) Additional or reduced scope
b) Changes to materials or quality
c) Changes to dimensions or position
d) Changes to sequence or timing
e) Changes due to legislative requirements
5.2 Variation Process
a) Written Notification
- Party requesting variation to provide written notice
- Notice to include detailed description of change
- Supporting documentation to be provided
a) Written Notification
- Party requesting variation to provide written notice
- Notice to include detailed description of change
- Supporting documentation to be provided
b) Variation Proposal
- Contractor to provide within 10 working days:
* Detailed cost breakdown
* Time implications
* Impact on existing works
* Any consequential effects
- Contractor to provide within 10 working days:
* Detailed cost breakdown
* Time implications
* Impact on existing works
* Any consequential effects
c) Client Response
- Client to respond within 10 working days
- Response must be in writing
- Deemed accepted if no response received
- Client to respond within 10 working days
- Response must be in writing
- Deemed accepted if no response received
d) Implementation
- No variation work to commence without written approval
- Variations to be documented in variation register
- Monthly variation summary to be provided
- No variation work to commence without written approval
- Variations to be documented in variation register
- Monthly variation summary to be provided
5.3 Pricing of Variations
a) Labour Rates
- As per Schedule C
- Subject to annual adjustment
- Include all on-costs and overheads
a) Labour Rates
- As per Schedule C
- Subject to annual adjustment
- Include all on-costs and overheads
b) Materials
- Cost plus
- Supporting invoices required
- Market testing for significant items
- Cost plus
[X]% margin- Supporting invoices required
- Market testing for significant items
c) Subcontractor Works
- Cost plus
- Competitive quotes required above $
- Client right to nominate subcontractors
- Cost plus
[X]% margin- Competitive quotes required above $
[X]- Client right to nominate subcontractors
5.4 Time Impact
a) Contractor entitled to extension of time for variations
b) Claims to be made within 10 working days
c) Detailed program impact to be provided
a) Contractor entitled to extension of time for variations
b) Claims to be made within 10 working days
c) Detailed program impact to be provided
5.5 Valuation Disputes
a) Independent quantity surveyor may be appointed
b) Costs shared equally
c) Determination binding unless disputed within 10 working days
a) Independent quantity surveyor may be appointed
b) Costs shared equally
c) Determination binding unless disputed within 10 working days
6. CONTRACTOR'S OBLIGATIONS AND BUILDING ACT COMPLIANCE
6.1 Building Act Compliance
a) Building Consents
- Obtain and maintain all necessary building consents
- Comply with all consent conditions
- Notify territorial authority of intended work commencement
- Obtain code compliance certificate upon completion
a) Building Consents
- Obtain and maintain all necessary building consents
- Comply with all consent conditions
- Notify territorial authority of intended work commencement
- Obtain code compliance certificate upon completion
b) Licensed Building Practitioner Requirements
- Ensure all restricted building work is carried out or supervised by LBPs
- Provide record of work certificates for all restricted building work
- Maintain current LBP registration throughout the Project
- Ensure all restricted building work is carried out or supervised by LBPs
- Provide record of work certificates for all restricted building work
- Maintain current LBP registration throughout the Project
c) Building Code Compliance
- Ensure all work complies with Building Code requirements
- Maintain compliance with Acceptable Solutions or Verification Methods
- Document any Alternative Solutions used
- Obtain necessary engineering certifications
- Ensure all work complies with Building Code requirements
- Maintain compliance with Acceptable Solutions or Verification Methods
- Document any Alternative Solutions used
- Obtain necessary engineering certifications
6.2 Construction Requirements
a) Execute the Works in accordance with:
- The Contract Documents
- Building Act 2004 and Building Code
- Relevant New Zealand Standards
- Approved building consent documentation
- Manufacturer specifications and instructions
a) Execute the Works in accordance with:
- The Contract Documents
- Building Act 2004 and Building Code
- Relevant New Zealand Standards
- Approved building consent documentation
- Manufacturer specifications and instructions
b) Quality Assurance
- Implement quality control procedures
- Maintain as-built documentation
- Conduct regular inspections
- Address defects promptly
- Implement quality control procedures
- Maintain as-built documentation
- Conduct regular inspections
- Address defects promptly
c) Site Management
- Maintain site safety and security
- Remove construction waste regularly
- Control noise and dust
- Protect neighboring properties
- Maintain site safety and security
- Remove construction waste regularly
- Control noise and dust
- Protect neighboring properties
6.3 Health and Safety Obligations
a) Comply with Health and Safety at Work Act 2015
b) Prepare and maintain site-specific safety plan
c) Conduct regular safety meetings
d) Report notifiable incidents
e) Maintain hazard register
a) Comply with Health and Safety at Work Act 2015
b) Prepare and maintain site-specific safety plan
c) Conduct regular safety meetings
d) Report notifiable incidents
e) Maintain hazard register
7. CLIENT'S OBLIGATIONS
7.1 The Client shall:
a) Provide site access
b) Supply accurate information
c) Make payments as agreed
d) Respond to queries promptly
e) Not interfere with the Works
a) Provide site access
b) Supply accurate information
c) Make payments as agreed
d) Respond to queries promptly
e) Not interfere with the Works
8. INSURANCE, LIABILITY AND INDEMNITY
8.1 Required Insurances
a) Contract Works Insurance
- Full replacement value of the Works
- Coverage for materials and temporary works
- Coverage for removal of debris
- Names both parties as insured
- Maximum excess: $[X]
a) Contract Works Insurance
- Full replacement value of the Works
- Coverage for materials and temporary works
- Coverage for removal of debris
- Names both parties as insured
- Maximum excess: $[X]
b) Public Liability Insurance
- Minimum cover: NZD 10 million per occurrence
- Cross liability clause included
- Coverage for vibration and removal of support
- Coverage for contractor's plant and equipment
- Minimum cover: NZD 10 million per occurrence
- Cross liability clause included
- Coverage for vibration and removal of support
- Coverage for contractor's plant and equipment
c) Professional Indemnity Insurance
- Minimum cover: NZD 5 million
- Run-off cover for 6 years post-completion
- Coverage for design elements
- Coverage for supervisory services
- Minimum cover: NZD 5 million
- Run-off cover for 6 years post-completion
- Coverage for design elements
- Coverage for supervisory services
d) Motor Vehicle Insurance
- Minimum third party cover: NZD 2 million
- Coverage for all vehicles on site
- Minimum third party cover: NZD 2 million
- Coverage for all vehicles on site
e) Workers Compensation Insurance
- As required by law
- Coverage for all employees and subcontractors
- As required by law
- Coverage for all employees and subcontractors
8.2 Insurance Requirements
a) Insurances to be maintained with reputable insurers
b) Evidence of currency to be provided annually
c) Client to be notified of any changes
d) Contractor to pay all excesses
e) Client to be notified of claims
a) Insurances to be maintained with reputable insurers
b) Evidence of currency to be provided annually
c) Client to be notified of any changes
d) Contractor to pay all excesses
e) Client to be notified of claims
8.3 Limitations of Liability
a) Total liability capped at:
- Contract Price for direct losses
- NZD [X] million for third party claims
a) Total liability capped at:
- Contract Price for direct losses
- NZD [X] million for third party claims
b) Exclusions from cap:
- Gross negligence or willful default
- Fraud or dishonesty
- Personal injury or death
- Intellectual property infringement
- Statutory fines or penalties
- Gross negligence or willful default
- Fraud or dishonesty
- Personal injury or death
- Intellectual property infringement
- Statutory fines or penalties
8.4 Indemnities
The Contractor indemnifies the Client against:
a) Death or injury to persons
b) Loss or damage to property
c) Claims by third parties
d) Breaches of statutory requirements
e) Intellectual property infringement
The Contractor indemnifies the Client against:
a) Death or injury to persons
b) Loss or damage to property
c) Claims by third parties
d) Breaches of statutory requirements
e) Intellectual property infringement
8.5 Duration of Insurance
a) Contract Works: Until Practical Completion
b) Public Liability: Duration of Works plus DLP
c) Professional Indemnity: 6 years post-completion
a) Contract Works: Until Practical Completion
b) Public Liability: Duration of Works plus DLP
c) Professional Indemnity: 6 years post-completion
9. DEFECTS LIABILITY
9.1 Defects Liability Period: 12 months from Practical Completion
9.2 The Contractor shall remedy any defects notified in writing during this period at their cost.
10. DISPUTE RESOLUTION
10.1 Rights Under Construction Contracts Act 2002
a) Nothing in this Agreement limits either party's rights to refer a dispute to adjudication under the Construction Contracts Act 2002
b) The parties acknowledge that adjudication may be initiated at any time
c) Other dispute resolution processes may continue parallel to adjudication
a) Nothing in this Agreement limits either party's rights to refer a dispute to adjudication under the Construction Contracts Act 2002
b) The parties acknowledge that adjudication may be initiated at any time
c) Other dispute resolution processes may continue parallel to adjudication
10.2 Dispute Resolution Process
a) Notice of Dispute
- Party to provide written notice describing the dispute
- Other party to respond within 5 working days
a) Notice of Dispute
- Party to provide written notice describing the dispute
- Other party to respond within 5 working days
b) Negotiation
- Senior representatives to meet within 10 working days
- Good faith negotiations for resolution
- Senior representatives to meet within 10 working days
- Good faith negotiations for resolution
c) Mediation
- If not resolved within 15 working days of notice
- Mediator appointed by AMINZ
- Costs shared equally
- If not resolved within 15 working days of notice
- Mediator appointed by AMINZ
- Costs shared equally
d) Adjudication
- May be initiated at any time under CCA
- Process governed by CCA
- Adjudicator's determination binding
- May be initiated at any time under CCA
- Process governed by CCA
- Adjudicator's determination binding
e) Arbitration
- If not resolved by other means
- Arbitrator appointed by AMINZ
- Arbitration Act 1996 applies
- Decision final and binding
- If not resolved by other means
- Arbitrator appointed by AMINZ
- Arbitration Act 1996 applies
- Decision final and binding
11. TERMINATION
11.1 Either party may terminate this Agreement if the other party:
a) Commits a material breach
b) Becomes insolvent
c) Fails to remedy a breach within 10 working days of notice
a) Commits a material breach
b) Becomes insolvent
c) Fails to remedy a breach within 10 working days of notice
11.2 Consequences of Termination
- Payment for completed works
- Return of Client materials
- Preservation of accrued rights
12. FORCE MAJEURE
12.1 Neither party shall be liable for delays caused by events beyond reasonable control.
12.2 Notice must be given within 5 working days of such event.
13. CONSUMER PROTECTION AND MANDATORY DISCLOSURE
13.1 Building Work Contracts
Where this Agreement relates to residential building work with a value exceeding $30,000:
a) The Client acknowledges receipt of:
- Prescribed checklist
- Disclosure statement
- Information about dispute resolution
Where this Agreement relates to residential building work with a value exceeding $30,000:
a) The Client acknowledges receipt of:
- Prescribed checklist
- Disclosure statement
- Information about dispute resolution
b) Mandatory warranties that:
- Work will be carried out competently
- Materials will be suitable and new
- Work will comply with building consent
- Work will be completed by agreed date
- Work will be carried out competently
- Materials will be suitable and new
- Work will comply with building consent
- Work will be completed by agreed date
c) These warranties survive completion
13.2 Consumer Guarantees Act 1993
a) Where applicable, nothing in this Agreement limits rights under the Act
b) Services to be provided with reasonable care and skill
c) Materials to be reasonably fit for purpose
a) Where applicable, nothing in this Agreement limits rights under the Act
b) Services to be provided with reasonable care and skill
c) Materials to be reasonably fit for purpose
13.3 Fair Trading Act 1986
a) No misleading or deceptive conduct
b) No false or misleading representations
c) No unsubstantiated representations
a) No misleading or deceptive conduct
b) No false or misleading representations
c) No unsubstantiated representations
13.4 Cooling-off Period
For residential building work:
a) 5 working days from receipt of disclosure statement
b) Client may cancel without penalty during this period
c) Notice of cancellation must be in writing
For residential building work:
a) 5 working days from receipt of disclosure statement
b) Client may cancel without penalty during this period
c) Notice of cancellation must be in writing
14. PROJECT ADMINISTRATION
14.1 Contract Administration
a) The Contract Administrator shall:
- Act as the Client's representative
- Issue instructions to the Contractor
- Certify payments
- Assess Extensions of Time
- Issue completion certificates
a) The Contract Administrator shall:
- Act as the Client's representative
- Issue instructions to the Contractor
- Certify payments
- Assess Extensions of Time
- Issue completion certificates
b) Instructions shall be:
- In writing
- Issued within agreed timeframes
- Recorded in a register
- In writing
- Issued within agreed timeframes
- Recorded in a register
14.2 Site Meetings
a) Regular site meetings shall be held:
- Weekly/fortnightly as agreed
- Attended by key representatives
- Minuted by the Contractor
a) Regular site meetings shall be held:
- Weekly/fortnightly as agreed
- Attended by key representatives
- Minuted by the Contractor
b) Minutes shall:
- Be distributed within 2 working days
- Include action items and responsibilities
- Be deemed accepted if not disputed within 5 working days
- Be distributed within 2 working days
- Include action items and responsibilities
- Be deemed accepted if not disputed within 5 working days
14.3 Reports and Records
a) The Contractor shall maintain:
- Daily site diary
- Progress reports
- Quality records
- Safety records
- As-built documentation
a) The Contractor shall maintain:
- Daily site diary
- Progress reports
- Quality records
- Safety records
- As-built documentation
b) Monthly reports shall include:
- Progress against program
- Quality issues
- Safety performance
- Variations and claims
- Design issues
- Upcoming activities
- Progress against program
- Quality issues
- Safety performance
- Variations and claims
- Design issues
- Upcoming activities
14.4 Communications
a) Formal notices shall be:
- In writing
- Delivered to specified address
- Copied to Contract Administrator
a) Formal notices shall be:
- In writing
- Delivered to specified address
- Copied to Contract Administrator
b) Electronic communications:
- Email acceptable for day-to-day matters
- Critical communications require hard copy
- Document management system to be used
- Email acceptable for day-to-day matters
- Critical communications require hard copy
- Document management system to be used
14.5 Document Control
a) All documents shall be:
- Uniquely identified
- Version controlled
- Distributed to agreed distribution list
- Stored in document management system
a) All documents shall be:
- Uniquely identified
- Version controlled
- Distributed to agreed distribution list
- Stored in document management system
b) Document register to include:
- Current versions
- Distribution records
- Review status
- Approval status
- Current versions
- Distribution records
- Review status
- Approval status
15. QUALITY MANAGEMENT
15.1 Quality System
a) The Contractor shall:
- Maintain ISO 9001 certification
- Implement project-specific quality plan
- Provide quality resources
a) The Contractor shall:
- Maintain ISO 9001 certification
- Implement project-specific quality plan
- Provide quality resources
b) Quality Plan to address:
- Organization and responsibilities
- Document control
- Design control
- Purchasing
- Process control
- Inspection and testing
- Non-conformance control
- Corrective action
- Quality records
- Quality audits
- Organization and responsibilities
- Document control
- Design control
- Purchasing
- Process control
- Inspection and testing
- Non-conformance control
- Corrective action
- Quality records
- Quality audits
15.2 Inspection and Testing
a) The Contractor shall:
- Prepare inspection and test plans
- Notify of hold points
- Maintain testing records
- Obtain third party certification where required
a) The Contractor shall:
- Prepare inspection and test plans
- Notify of hold points
- Maintain testing records
- Obtain third party certification where required
b) The Client may:
- Witness tests
- Request additional testing
- Audit quality records
- Reject non-compliant work
- Witness tests
- Request additional testing
- Audit quality records
- Reject non-compliant work
15.3 Non-conformance
a) Non-conforming work shall be:
- Reported immediately
- Documented on NCR
- Reviewed for disposition
- Corrected before proceeding
a) Non-conforming work shall be:
- Reported immediately
- Documented on NCR
- Reviewed for disposition
- Corrected before proceeding
b) Disposition options:
- Rework to meet requirements
- Accept with or without repair
- Reject and replace
- Accept with concession
- Rework to meet requirements
- Accept with or without repair
- Reject and replace
- Accept with concession
15.4 Quality Records
a) Records shall demonstrate:
- Compliance with specifications
- Achievement of quality requirements
- Implementation of quality system
a) Records shall demonstrate:
- Compliance with specifications
- Achievement of quality requirements
- Implementation of quality system
b) Records to include:
- Inspection reports
- Test results
- Certification
- Non-conformance reports
- Corrective actions
- Audit reports
- Inspection reports
- Test results
- Certification
- Non-conformance reports
- Corrective actions
- Audit reports
16. FINANCIAL SECURITY
16.1 Performance Bond
a) The Contractor shall provide:
- Bank guarantee or bond
- Value: [X]% of Contract Price
- Valid until end of Defects Liability Period
a) The Contractor shall provide:
- Bank guarantee or bond
- Value: [X]% of Contract Price
- Valid until end of Defects Liability Period
b) The Client may call on the bond for:
- Breach of contract
- Liquidated damages
- Defects rectification
- Any valid claim under the Contract
- Breach of contract
- Liquidated damages
- Defects rectification
- Any valid claim under the Contract
16.2 Retention
a) The Client shall retain:
- [X]% of each progress payment
- Up to maximum of [X]% of Contract Price
a) The Client shall retain:
- [X]% of each progress payment
- Up to maximum of [X]% of Contract Price
b) Release of retention:
- 50% at Practical Completion
- Balance at end of Defects Liability Period
- Subject to completion of outstanding work
- Subject to rectification of defects
- 50% at Practical Completion
- Balance at end of Defects Liability Period
- Subject to completion of outstanding work
- Subject to rectification of defects
16.3 Parent Company Guarantee
If required:
a) Guarantee to:
- Be in approved form
- Cover all obligations
- Remain valid for duration of Contract
- Be enforceable in New Zealand
If required:
a) Guarantee to:
- Be in approved form
- Cover all obligations
- Remain valid for duration of Contract
- Be enforceable in New Zealand
b) Parent company to:
- Have minimum credit rating
- Maintain financial capacity
- Submit annual financial statements
- Have minimum credit rating
- Maintain financial capacity
- Submit annual financial statements
16.4 Additional Security
The Client may require:
a) Additional security if:
- Contractor's financial position deteriorates
- Performance is unsatisfactory
- Significant variations increase Contract Price
The Client may require:
a) Additional security if:
- Contractor's financial position deteriorates
- Performance is unsatisfactory
- Significant variations increase Contract Price
b) Form of additional security:
- Increased retention
- Additional bond
- Parent company guarantee
- Increased retention
- Additional bond
- Parent company guarantee
17. INTELLECTUAL PROPERTY
17.1 Pre-existing IP
a) Each party retains ownership of:
- Pre-existing intellectual property
- Background IP
- Methodologies and know-how
a) Each party retains ownership of:
- Pre-existing intellectual property
- Background IP
- Methodologies and know-how
b) Each party grants the other:
- License to use for the Project
- Non-exclusive rights
- Non-transferable rights
- License to use for the Project
- Non-exclusive rights
- Non-transferable rights
17.2 Project IP
a) New IP created during the Project:
- Ownership vests in the Client
- Contractor assigns all rights
- Contractor to assist with registration
a) New IP created during the Project:
- Ownership vests in the Client
- Contractor assigns all rights
- Contractor to assist with registration
b) The Contractor receives:
- License to use for the Project
- Right to use generic knowledge
- Right to use for internal purposes
- License to use for the Project
- Right to use generic knowledge
- Right to use for internal purposes
17.3 Documentation
a) Project documentation:
- Copyright owned by Client
- Client may use for any purpose
- Contractor may use for Project only
a) Project documentation:
- Copyright owned by Client
- Client may use for any purpose
- Contractor may use for Project only
b) Contractor's standard documentation:
- Copyright retained by Contractor
- Client receives perpetual license
- Use limited to the Project
- Copyright retained by Contractor
- Client receives perpetual license
- Use limited to the Project
17.4 Moral Rights
a) The Contractor:
- Waives moral rights in Project IP
- Obtains waivers from employees
- Obtains waivers from subcontractors
a) The Contractor:
- Waives moral rights in Project IP
- Obtains waivers from employees
- Obtains waivers from subcontractors
b) Attribution rights:
- Reasonable attribution to be given
- Form of attribution to be agreed
- No modification without consent
- Reasonable attribution to be given
- Form of attribution to be agreed
- No modification without consent
17.5 IP Warranty and Indemnity
a) The Contractor warrants:
- No infringement of third party IP
- Right to grant licenses
- IP created by qualified persons
a) The Contractor warrants:
- No infringement of third party IP
- Right to grant licenses
- IP created by qualified persons
b) The Contractor indemnifies against:
- IP infringement claims
- License breaches
- Moral rights claims
- IP infringement claims
- License breaches
- Moral rights claims
SCHEDULES AND APPENDICES
SCHEDULE A: PROJECT SPECIFICATIONS
- Project Details
a) Project Name: [INSERT]
b) Project Address: [INSERT]
c) Description of Works: [INSERT]
- Scope of Works
a) Included Works: [LIST]
b) Excluded Works: [LIST]
c) Provisional Sums: [LIST]
- Construction Methodology
a) Construction Stages
b) Key Construction Methods
c) Special Requirements
- Site Information
a) Site Access
b) Working Hours
c) Storage Areas
d) Site Facilities
SCHEDULE B: PAYMENT SCHEDULE
- Contract Sum Breakdown
[INSERT DETAILED BREAKDOWN]
Construction Stage | Description | Payment (%) | Amount ($) |
Initial Deposit | Contract signing and mobilization | 10% | $[Amount] |
Foundation | Site preparation and foundation work | 15% | $[Amount] |
Framing | Structural framing and roof trusses | 20% | $[Amount] |
Lock-up | External walls, windows, doors | 20% | $[Amount] |
Internal Fit-out | Internal walls, electrical, plumbing | 25% | $[Amount] |
Completion | Final finishing and handover | 10% | $[Amount] |
- Progress Payment Schedule
Stage | Percentage | Amount | Cumulative |
ㅤ | ㅤ | ㅤ | ㅤ |
- Retention
a) Retention Rate: [X]%
b) Maximum Retention: [X]%
c) Release Milestones
Milestone | Retention Rate | Maximum Retention | Release Conditions |
During Construction | 10% of each progress payment | 5% of total contract value | Held until practical completion |
Practical Completion | Reduces to 5% | 2.5% of total contract value | Upon issue of Practical Completion Certificate |
Defects Liability Period | 2.5% | 1.25% of total contract value | After completion of all defects remediation |
Final Release | 0% | 0% | After expiry of defects liability period and final inspection |
- Payment Claim Requirements
[INSERT REQUIREMENTS]
SCHEDULE C: LABOUR RATES
- Standard Rates
Position | Normal Hours | Overtime | Weekend |
[INSERT ROWS] | ㅤ | ㅤ | ㅤ |
- Special Rates
[INSERT ANY SPECIAL RATES]
- Rate Adjustments
[INSERT ADJUSTMENT PROVISIONS]
SCHEDULE D: DRAWINGS LIST
Drawing No. | Title | Revision | Date |
[INSERT ROWS] | ㅤ | ㅤ | ㅤ |
SCHEDULE E: SPECIFICATIONS
- Technical Specifications
[INSERT LIST]
- Performance Specifications
[INSERT LIST]
- Material Specifications
[INSERT LIST]
SCHEDULE F: KEY PERSONNEL
- Client's Representatives
Position | Name | Contact Details |
[INSERT ROWS] | ㅤ | ㅤ |
- Contractor's Personnel
Position | Name | Contact Details |
[INSERT ROWS] | ㅤ | ㅤ |
SCHEDULE G: INSURANCE REQUIREMENTS
- Contract Works Insurance
a) Sum Insured: [INSERT]
b) Deductibles: [INSERT]
c) Special Conditions: [INSERT]
- Public Liability Insurance
a) Limit of Indemnity: [INSERT]
b) Deductibles: [INSERT]
c) Special Conditions: [INSERT]
- Professional Indemnity Insurance
a) Limit of Indemnity: [INSERT]
b) Deductibles: [INSERT]
c) Special Conditions: [INSERT]
SCHEDULE H: FORMS AND TEMPLATES
- Payment Claim Form
[INSERT TEMPLATE]
- Payment Schedule Form
[INSERT TEMPLATE]
- Variation Request Form
Project: [PROJECT NAME]
Variation Request No: [NUMBER]
Date: [DATE]
Description of Variation:
[INSERT DESCRIPTION]
[INSERT DESCRIPTION]
Reason for Variation:
[INSERT REASON]
[INSERT REASON]
Cost Impact:
Direct Costs: $[AMOUNT]
Margin: [X]%
Total (excl. GST): $[AMOUNT]
GST: $[AMOUNT]
Total (incl. GST): $[AMOUNT]
Direct Costs: $[AMOUNT]
Margin: [X]%
Total (excl. GST): $[AMOUNT]
GST: $[AMOUNT]
Total (incl. GST): $[AMOUNT]
Time Impact:
Additional Time Required: [X] working days
Impact on Critical Path: Yes/No
Revised Completion Date: [DATE]
Additional Time Required: [X] working days
Impact on Critical Path: Yes/No
Revised Completion Date: [DATE]
Supporting Documentation:
[LIST ATTACHMENTS]
[LIST ATTACHMENTS]
Submitted by:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Approved by:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
- Extension of Time Claim Form
Project: [PROJECT NAME]
EOT Claim No: [NUMBER]
Date: [DATE]
Cause of Delay:
[INSERT DESCRIPTION]
[INSERT DESCRIPTION]
Period of Delay:
Start Date: [DATE]
End Date: [DATE]
Total Days: [NUMBER]
Start Date: [DATE]
End Date: [DATE]
Total Days: [NUMBER]
Impact Analysis:
[INSERT ANALYSIS]
[INSERT ANALYSIS]
Supporting Documentation:
[LIST ATTACHMENTS]
[LIST ATTACHMENTS]
Submitted by:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Approved by:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
- Practical Completion Certificate
Project: [PROJECT NAME]
Date: [DATE]
This is to certify that:
- The Works have reached Practical Completion
- The Date of Practical Completion is: [DATE]
- The following minor defects and omissions are noted:
[INSERT LIST]
- These defects and omissions must be rectified within: [X] days
Issued by:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Accepted by Contractor:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Accepted by Client:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
- Defects List Template
Project: [PROJECT NAME]
Inspection Date: [DATE]
No. | Location | Description | Due Date | Completed |
[INSERT ROWS] | ㅤ | ㅤ | ㅤ | ㅤ |
Inspected by:
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
Name: _________________
Position: ______________
Signature: _____________
Date: _________________
20. GST PROVISIONS
20.1 GST Registration
a) The Contractor warrants that it:
- Is registered for GST
- Will maintain registration throughout the Contract
- Will notify the Client of any GST status changes
a) The Contractor warrants that it:
- Is registered for GST
- Will maintain registration throughout the Contract
- Will notify the Client of any GST status changes
b) The Client warrants that it:
- Is/is not registered for GST [delete one]
- Will notify the Contractor of any GST status changes
- Is/is not registered for GST [delete one]
- Will notify the Contractor of any GST status changes
20.2 GST Treatment
a) All amounts in this Agreement are:
- Exclusive of GST unless stated otherwise
- Subject to GST at the prevailing rate
a) All amounts in this Agreement are:
- Exclusive of GST unless stated otherwise
- Subject to GST at the prevailing rate
b) The Client shall pay GST:
- At the same time as payment of any GST exclusive amount
- Upon receipt of a valid tax invoice
- At the same time as payment of any GST exclusive amount
- Upon receipt of a valid tax invoice
20.3 Tax Invoices
a) The Contractor shall provide tax invoices that:
- Comply with GST Act requirements
- Include all prescribed information
- Are provided promptly
a) The Contractor shall provide tax invoices that:
- Comply with GST Act requirements
- Include all prescribed information
- Are provided promptly
b) Tax invoices must show:
- GST exclusive amount
- GST amount
- GST inclusive total
- GST exclusive amount
- GST amount
- GST inclusive total
21. CONFIDENTIALITY
21.1 Confidential Information
"Confidential Information" means:
a) The terms of this Agreement
b) Project documentation and drawings
c) Pricing and financial information
d) Technical and design information
e) Business and operational information
f) Any information marked confidential
"Confidential Information" means:
a) The terms of this Agreement
b) Project documentation and drawings
c) Pricing and financial information
d) Technical and design information
e) Business and operational information
f) Any information marked confidential
21.2 Obligations
Each party shall:
a) Keep confidential information secret
b) Use it only for the Project
c) Protect it from unauthorized access
d) Return it upon request
e) Notify of any unauthorized disclosure
Each party shall:
a) Keep confidential information secret
b) Use it only for the Project
c) Protect it from unauthorized access
d) Return it upon request
e) Notify of any unauthorized disclosure
21.3 Permitted Disclosures
Disclosure permitted to:
a) Professional advisers
b) Employees who need to know
c) Subcontractors (with confidentiality agreements)
d) As required by law
e) With written consent
Disclosure permitted to:
a) Professional advisers
b) Employees who need to know
c) Subcontractors (with confidentiality agreements)
d) As required by law
e) With written consent
21.4 Duration
Obligations continue:
a) During the Project
b) For 5 years after completion
c) Indefinitely for trade secrets
Obligations continue:
a) During the Project
b) For 5 years after completion
c) Indefinitely for trade secrets
22. ELECTRONIC TRANSACTIONS AND COUNTERPARTS
22.1 Electronic Transactions
a) The parties consent to:
- Electronic communications
- Electronic signatures
- Electronic document exchange
a) The parties consent to:
- Electronic communications
- Electronic signatures
- Electronic document exchange
b) Electronic communications deemed received:
- When entering recipient's system
- During business hours
- Next business day if after hours
- When entering recipient's system
- During business hours
- Next business day if after hours
22.2 Counterparts
a) This Agreement may be executed in counterparts
a) This Agreement may be executed in counterparts
b) Each counterpart:
- Is an original
- Together constitute one agreement
- May be exchanged electronically
- Is an original
- Together constitute one agreement
- May be exchanged electronically
c) Valid execution methods:
- Physical signing
- Electronic signatures complying with Contract and Commercial Law Act 2017
- Digital signatures with valid certificates
- Physical signing
- Electronic signatures complying with Contract and Commercial Law Act 2017
- Digital signatures with valid certificates
22.3 Document Control
a) Version Control:
- Each page numbered consecutively
- Version number and date on each page
- Changes recorded in change register
a) Version Control:
- Each page numbered consecutively
- Version number and date on each page
- Changes recorded in change register
b) Distribution:
- Controlled copies numbered
- Recipients recorded
- Updates notified to all holders
- Controlled copies numbered
- Recipients recorded
- Updates notified to all holders
DOCUMENT CONTROL
Document Number: [INSERT]
Version: [INSERT]
Date: [INSERT]
Page [X] of [Y]
Version: [INSERT]
Date: [INSERT]
Page [X] of [Y]
Change Register:
Version | Date | Description | Approved By |
[INSERT ROWS] | ㅤ | ㅤ | ㅤ |
IN WITNESS WHEREOF the parties have executed this Agreement:
EXECUTED by [CONTRACTOR NAME]
Director Signature
Print Name
Date
Director/Authorised Signatory Signature
Print Name
Date
EXECUTED by [CLIENT NAME]
Director Signature
Print Name
Date
Director/Authorized Signatory Signature
Print Name
Date
SIGNED in the presence of:
Witness Signature
Print Name
Occupation
Address
Date
MODIFICATION GUIDELINES
- Project Scope (Section 2):
- Insert specific project details
- List all inclusions and exclusions
- Reference relevant drawings and specifications
- Contract Price (Section 3):
- Insert agreed payment terms
- Modify progress payment structure
- Add specific payment milestones
- Timeline (Section 4):
- Insert project-specific dates
- Add any special milestone dates
- Modify extension of time provisions
- Variations (Section 5):
- Adjust markup percentages
- Modify approval processes
- Add specific variation procedures
- Insurance (Section 8):
- Adjust coverage amounts
- Add project-specific requirements
- Modify liability caps
EXAMPLES
- Project Scope Example:
"The Works comprise the construction of a two-story residential dwelling including: - Site preparation and excavation
- Concrete foundations and floor slab
- Timber frame construction
- External cladding and roofing
- Internal fit-out and finishes
- Electrical and plumbing installations
- Landscaping as per approved plans"
- Payment Schedule Example:
"Progress payments: - 20% upon completion of foundations
- 25% upon completion of roof structure
- 25% upon completion of external envelope
- 20% upon completion of internal fit-out
- 10% upon Practical Completion"
- Variation Request Example:
"Variation Request No: VR001
Description: Additional bathroom on ground floor
Cost Implications: NZD 25,000 + GST
Time Implications: Additional 15 working days
Breakdown: - Labour: 120 hours @ $85/hr
- Materials: $12,000 + 15% margin
- Subcontractors: $8,000 + 10% margin"
Building Law in New Zealand
Building Regulations
Building (Residential Consumer Rights and Remedies) Regulations 2014
Last Review: 16/08/2024
Schedule 2 Prescribed checklist
Legislation
About this checklist
A building contractor is required to provide you with this checklist and other prescribed information under the
Building Act 2004 before you sign a contract for the building work if—
- you request this checklist and the prescribed disclosure information; or
- the building work is going to cost $30,000 or more (including GST).
The building contractor is the person or company you have asked to do building work for you.
The building contractor may not be an actual builder. The building contractor could be a plumber, an electrician,
or any other tradesperson who is doing some building work for you and whom you are dealing with directly. If the
building work is or includes the manufacture of a modular component, the building contractor will be the modular
component manufacturer.
No. | Steps | Completed (Tick when completed) |
1 | Become informed | ㅤ |
2 | Agree on project structure and management | ㅤ |
3 | Hire competent building contractors | ㅤ |
4 | Agree on price and payments | ㅤ |
5 | Have a written contract | ㅤ |
6 | Take control | ㅤ |
7 | Resolving disputes | ㅤ |
(See notes below)
Notes
Step 1—Become informed
All building work must comply with the provisions of the Building Act 2004. You can find a copy of the Building Act 2004 on the New Zealand Legislation website: http://www.legislation.govt.nz
Building work refers to any construction or alteration of a building. This includes work on homes and other structures like garages, retaining walls, and fences. It also covers the manufacture of modular components and related activities such as painting, decorating, and landscaping when these are part of the building's construction or alteration.
Note that standalone redecorating without any construction or alteration is not considered building work. Similarly, landscaping work that doesn't involve structures (such as pergolas or retaining walls) falls outside the definition of building work.
All building work requires a building consent unless it is exempt under the Building Act 2004.
Generally, only simple or low-risk work is exempt from the requirement to have a building consent. Certain gas and electrical work is also exempt. For more information, go to http://www.building.govt.nz
Building work that involves significant changes or higher risks (such as structural alterations) requires a building consent and must be carried out or supervised by a licensed building practitioner. For more information on these requirements, go to http://www.building.govt.nz
Modular components manufactured by a registered MCM require consent if designed by an external party (such as an architect or draftsperson). However, if a registered MCM both designs and manufactures the component—and is certified to do so—building consent is not required. Note that building consent is still required for installing the modular component on site. For more information on the modular component manufacturer scheme, go to https://www.building.govt.nz
Step 2—Agree on project structure and management
Building projects do not run themselves. Decide how you want to manage the building project.
Several key roles are needed on a building project. You need someone to—
- manage timelines and costs:
- manage subcontractors:
- liaise with the local council:
- make decisions about the design of the work.
You can do some of this yourself, but if you're not familiar with the building work process, consider getting help from an architect, independent project manager, building company, or licensed building practitioner
who is licensed to coordinate the building work involved.
Be sure to clearly define the project's scope and size, and obtain detailed plans before starting.
Establish clear communication with your building contractor about who will perform the building work and who will be responsible for making design and change decisions during the project.
Step 3—Hire competent building contractors
Ensure that your building contractor has the skills and resources to carry out the project.
You should—
- ask for references and inquire about other work that the building contractor has done:
- find out if the building contractor is a licensed building practitioner or has other appropriate qualifications. For more information about licensed building practitioners, go to http://www.building.govt.nz
- determine whether the building contractor has sufficient insurance to cover the work while it is being carried out:
- ask about the building contractor's employees and what subcontractors they will use on the project:
- if the building contractor is a company, look up its company records on the Companies Office's Internet site.
If your search raises concerns, ask the building contractor to explain.
- if the building work includes modular component manufacture, look up the manufacturer's details on the register of modular component manufacturers.
Step 4—Agree on price and payments
The contract should clearly state what payments are required and when. Where possible, a fixed price is preferable.
The lowest price is not always the best price.
You should—
- obtain detailed quotes (not estimates) for the building work:
- ensure that the scope of work, materials, and fixtures are identical across quotes to make fair comparisons:
- make sure you have the funds to pay for the project before work begins and that you understand the payment terms:
- think carefully before paying more than the cost of completed work and supplied materials at the time of payment.
Step 5—Have a written contract
You should have a written contract. The contract should include items such as—
- a description of the building work:
- the start and completion dates for the building work:
- how variations to the building work will be agreed:
- the payment process, including dates or stages for payment and how payments will be invoiced, made and receipted:
- the dispute resolution processes to be followed.
You should obtain legal advice to ensure that you understand your rights and obligations and that the contract complies with all legal requirements.
Note: The Building Act 2004 requires that there must be a written contract for residential building work with a value of $30,000 or more (including GST), and the Building (Residential Consumer Rights and Remedies) Regulations 2014 prescribe matters that must be included in every contract for residential building work with a value of $30,000 or more. You can find a copy of the Building Act 2004 and the Building (Residential Consumer Rights and Remedies) Regulations 2014 on the New Zealand Legislation website: http://www.legislation.govt.nz
Step 6—Take control
All residential building work is covered by implied warranties prescribed by the Building Act 2004 that address matters such as workmanship and building work being fit for purpose. For more information, go to http:// www.building.govt.nz
You should—
- establish a clear line of communication with the building contractor through the site foreman, project manager, or other authorized representative (this person should be identified as the "key contact person" in the prescribed disclosure information provided with this checklist):
- track how your decisions during the project may affect your contract and costs, and document any changes you approve.
Step 7—Resolving disputes
Both you and the building contractor benefit from maintaining a smooth project and addressing disputes promptly.
If you have concerns about the building project, raise them with the building contractor (or the key contact person) immediately.
Address your concerns in good faith and follow the dispute resolution processes outlined in your contract. For information on your options, go to http://www.building.govt.nz
If you have concerns about an invoice, clearly explain them to the building contractor in writing.
Missing a payment when it's due may result in the building contractor initiating dispute resolution proceedings before you can explain the delay. (Note that withholding payment during a dispute typically worsens the situation.)
Further information
For more information, go to http://www.building.govt.nz or call the Ministry of Business, Innovation, and Employment on 0800 242 243.
History Notes
Schedule 2, under the heading "About this checklist", was amended, as from 7 September 2022, by reg Building (Residential Consumer Rights and Remedies) Amendment Regulations11(1)B 2022 (SL 2022/174) by inserting "If the building work is or includes the manufacture of a modular component, the building contractor will be the modular component manufacturer." after "dealing with directly."
Schedule 2, notes, under the heading "Step 1—Become informed", was amended, as from 7 September 2022, by reg 11(2) Building (Residential Consumer Rights and Remedies) Amendment Regulations 2022 (SL 2022/174) by inserting "It includes the manufacture of a modular component." after "and fences."
Schedule 2, notes, under the heading "Step 1—Become informed", was amended, as from 7 September 2022, by reg 11(3) Building (Residential Consumer Rights and Remedies) Amendment Regulations 2022 (SL 2022/174) by inserting "Modular components manufactured by a registered MCM still require a consent if they are designed by someone other than the registered MCM (for example, by an architect or a draftsperson). If a modular component is designed and manufactured by a registered MCM who is certified to design and manufacture the component then building consent is not required. Building consent will be required for the installation of the modular component on the site. For more information on the modular component manufacturer scheme, go to https://www.building.govt.nz" as the last paragraph.
Schedule 2, notes, under the heading "Step 3—Hire competent building contractors", was amended, as from 7 September 2022, by reg 11(4) Building (Residential Consumer Rights and Remedies) Amendment Regulations 2022 (SL 2022/174) by inserting "• if the building work is or includes the manufacture of a modular component, look up the details of the modular component manufacturer on the register of modular component manufacturers." as the last item.
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