FROM NZCB —
NZCB Building Contracts New Zealand Certified Builders (NZCB) have several Building Contracts available, depending on the type of project being undertaken, for Business members to complete online or order in hardcopy form. Below is a breakdown of the different contracts available. Preliminary Services
Fixed Price+
This contract is used 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.
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.
Small Works and Alterations – for projects $30,000 and under
Cost & Mark-Up
This contract is used 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.
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 margin for the builder’s administration, overhead and profit.
Spec Build (hard copy only)
Renovations (Fixed Price + or Cost & Mark-up)
This contract is 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.
This contract is similar to the standard building contract except for three main differences: 1. First, the builder only gets possession of that part of the building he is working on. 2. Secondly, the owner always takes out the contract works insurance. 3. 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.
These terms should NOT be used when: • the builder intends to sell the land and commence building work after settlement; or • the builder has completed the building work. It doesn’t matter whether the builder hasn’t even started building yet e.g. he has sold off the plans, or whether he only has a few weeks to completion.
Labour Only (Fixed Price + or Cost & Mark-up)
Portable Building/Prefabricated Building Component (hard copy only) This contract is used 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.
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This contract is 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. The contract allows for the supply of incidentals (low value) and variation rates and margins are also agreed upon. Samples of the above contracts can be downloaded for free from the Sample Building Contracts tab under the Building Contracts section of the NZCB members’ only Toolshed www.nzcb.nz/members/building-contracts/ Unsure of which contract to use? Contact the NZCB National Support Office on 0800 237 843.
