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In New Zealand, if you are carrying out any building work that costs more than $30,000 (including GST), you must have a written contract covering the project. It is also recommended for smaller jobs.

On top of the contract itself, your builder must provide a checklist with information about the building process as well as a disclosure statement.

While it is possible to use the written quote as a contract, quotes are not usually detailed. If something goes wrong, a quote probably won’t cover what happens when the parties disagree and can lead to messy disputes.

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Closing up of hand signing contract

Types of Building Contracts.

There are three major types of building contracts that you can agree on with your builder.

The first is a Full Contract. In this case, the builder will manage the entire process, from hiring subcontractors to supplying materials and arranging council inspections.

The second is a Labour-Only Contract. This type of contract specifies that the builder will only build, and you will be responsible for hiring any additional subcontractors, buying materials, and ensuring the work meets the Building Code.

The final type is a Managed Labour-Only Contract. For this agreement, there is joint responsibility with you and the builder determining which parts you are responsible for. For example, the builder may prefer to purchase their own supplies and hire subcontractors they trust, while you might manage council approval and meeting health and safety standards on the site.

Building contracts with Design Network.

With building contracts, you hope for the best but plan for the worst. That is to say, you hope the project will go seamlessly, but make a plan just in case there are issues along the way. This means creating a water-tight contract, with clear responsibilities for each party involved. This is particularly important for larger projects where there is a lot of money at stake.

At Design Network, we offer our services for creating clear building contracts that will hold all parties accountable to their responsibilities. We are happy to provide advice on what your contract should include to protect everyone involved.

Contact us today for assistance with your building contracts.

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