Getting to know your NZCB Building Contracts

Which contract do I use? New Zealand Certified Builders (NZCB) has a full suite of Building Contacts available for all current Business members to complete online or purchase as a hard copy from the members’ only Toolshed. Below is a quick reference guide to help workout which contact you should be using.

Fixed Price+

This contract is used when an aspect [or all] of a project has a quoted element to it. Should there be variations to the quote then this contract allows for flexibility while still maintaining payment security. The deposit is held by the builder during construction and balanced at the time of final invoice.

Cost and Markup

This contract is used when the total price payable for the building work is not fixed, specified, or known at the time of entering into the contract. Instead, the progress payments and the final contract price are to be calculated by reference to the actual costs incurred by the builder in carrying out the building work, plus a for the builder’s administration, overhead and profit.

Labour Only Fixed Price+

This contract should only be used when the overall management of the project (including the procurement of the materials, the hiring of the contractors, and the coordination of their activities on site) is being performed by the owner or a specialist project manager appointed by the owner such as an architect, engineer or another builder. Use this contract for labour only work in which you have submitted a fixed price quote. The contract allows for the supply of incidentals (low value) and variation rates and s are also agreed upon.

Labour Only Cost and Markup

This contract has the same terms of use as the Labour Only Fixed Price+ as above but should be used when the total price payable for the building work is not fixed, specified, or known at the time of entering into the contract. Instead, the progress payments and the final contract price are to be calculated by reference to the actual costs incurred by the Builder in carrying out the building work, plus a for the Builder’s administration, overhead and profit. The contract allows for the supply of incidentals (low value). Renovation Fixed Price+

Similar to the standard Fixed Price+ contract except for three main differences: First, the Builder only gets possession of that part of the building he is working on. Secondly, the Owner always takes out the contract works insurance. Thirdly, if you are charging on the basis of having reached defined stages of completion of the works, those stages have been left blank so that you can fill them out to fit the requirements of the project. This contract is to be used when an aspect [or all] of a project has a quoted element to it. Should there be variations to the quote then this contract allows for flexibility while still maintaining payment security. The deposit is held by the builder during construction and balanced at time of final invoice.

Renovation Cost and Markup

Similar to the standard Cost and Markup contract except for three main differences: First, the Builder only gets possession of that part of the building he is working on. Secondly, the Owner always takes out the contract works insurance. Thirdly, if you are charging on the basis of having reached defined stages of completion of the works, those stages have been left blank so that you can fill them out to fit the requirements of the project. Charge up situation, whereby hourly charge out rates of the builder and contractors are agreed upon, along with a markup on materials and services supplied by or to the builder. Flexible payment options to suit the builder.

Small Works and Alterations

This Contract is intended for use where the building work is expected to be of such short duration that the builder will only need to invoice the owner once. The builder has the option to select whether the works will be charge up or a fixed quote. Where multiple invoices and payments are contemplated a more comprehensive contract is recommended.

Preliminary Services

This contract is intended for use where the builder has been asked to do some preliminary work in connection with a proposed building project, either prior to the project commencing, or as part of a feasibility study to determine if the project will go ahead.

Spec Build

This Agreement is to be used when the builder is building a spec home and when the builder; owns the land on which he is building something, and, sells the land to someone before he is finished building. These terms should NOT be used when: the builder intends to sell the land and commence building work after.

NEW!

Portable Structure Fixed Price+ Contract

This Contract is intended for use where the building work carried out by the Builder will result in a portable building (whether temporary or permanent), or building component, that will be relocated from the construction site to another location, on the completion of such portable building/building component. This Contract is intended to be used whether the Builder is only responsible for the construction of the portable building/building component or is also responsible for any (or all) of the transportation, installation and site works associated with the relocation of the portable building/building component. Use this contract for:

• Portable and relocatable buildings • Modular portable building units • Prefabricated relocatable building components • Examples include tiny homes, classrooms, portable office buildings or temporary transitional buildings Need help with your building contracts?

Don’t forget your FREE NZCB Helplines. All current NZCB members have access to 20 minutes free advice with either of the below NZCB Helplines:

• For technical questions call Peter Degerholm at Calderglen

Associates on 021 307 232

• For legal questions call Geoff Hardy at Martelli McKegg

Lawyers on 09 379 0700

For a step-by-step guide from your first meeting with the client to handing over the keys, head over to the Compliance page on the members’ only Toolshed.

Sample copies of all Building Contracts are available on the members’ only Toolshed.

Online Contracts are simple to use and raise your professionalism – why not give them a go?

• Enter the job information on an easy step template • Save and close at any time so you can continue editing at your leisure • A PDF preview is available when completing the contact • Download a draft copy to email to your client so they can read it over before signing • Print the completed contract and drop it round to your client • When a contract is completed it is automatically saved to ‘My Contracts’ on your Toolshed.

This means your contracts can be downloaded at any time.

If you would like some guidance on using the Online Contracts, please call Georgia 0800 237 843 ext 700.