Building Compliance

Get it right the first time!

Wrapping your head around building compliance paperwork can be a little daunting but fear not, we are here to help! Read on to understand what documentation should be in place when undertaking residential building work (if you are the main contractor). NZCB has put together a Step by Step Builders’ Checklist which covers not only compliance but other useful tick-box items to assist you with a smooth sailing project. This can be downloaded from the members ToolShed, under Building Compliance.

Before building works begins...

1. First meeting – Handover a Checklist This checklist is different from the above because, it has been prepared by the Ministry (MBIE) and includes information on how the building project will be structured and managed, e.g. having a written contract, dispute resolution etc. Print the Checklist and handover to your client.

2. At quote/tender time – Handover a

Disclosure Statement The Disclosure Statement has also been prepared by the Ministry and its intent is to inform your client about your business, site contact, intended insurances, guarantees and warranties. Complete a Disclosure Statement and hand it over to your client.

3. Awarded the job – Sign a building contract & apply for the Halo 10 Year Guarantee Always sign the contract and guarantee with your client before building work begins. NZCB has a suite of contracts available to suit your project specific needs. These can be completed online or by requesting a hardcopy of the contract be posted to you.

The NZCB board has adopted a policy that requires all Business members to take out a Halo policy for all residential works $30,000 inc GST or more.

If you complete your contract online and tick the right boxes it will automatically send information through to BrokerWeb Risk Services to start the guarantee process. If you are ordering a hard copy contract don’t forget to order or download the Halo application.

During The Build

4. Variations All variations should be captured in writing. A notice of variation is used to advise your client of a change to the original scope of work, it could be:

• a fixed cost or credit

• a non fixed cost

• or an advisory note only

5. Tax Invoice/Payment Claim Invoicing is a big part of your day to day business, there are six things to remember when producing a payment claim

so that if a client disputes the claim, you are still in a good position to receive payment.

Unsure of the six things? Have a look on the members ToolShed under Building Compliance.

After building work finishes

We recommend you collate all the below information and present it to your client in the form of a ‘New Home Pack’. Don’t forget to handover their keys too!

6. Product & service warranties Gather up and hand over product warranties on every component or material used for the project. Concentrate on those which are accessible by the client. Put the pressure on your suppliers and subtrades to supply this information.

We’ve also teamed up with ProductSpec so you can search an online library of products on the members ToolShed, under ProductSpec.

7. Maintenance Schedule Give your client any information on product maintenance to ensure the durability of products can be maintained. Concentrate on those which are accessible by the client. Put the pressure on your suppliers and subtrades to supply this information.

You may also find this information on the BRANZ website www.branz.co.nz under their Web Resources.

8. Insurance documentation Give your client a copy of any current insurance policies you hold for the building work completed under the contract (not including policies that expire before the work is completed). Contact your insurance provider for the relevant wording or policy if you do not already have it on hand.

9. 12-Month Defects Period A mandatory twelve month defect repair period is placed on all residential work from the date the building work is complete. Your client has 12 months to advise you in writing, of any defect.

The Ministry has produced a guidance document on acceptable levels of workmanship and tolerances to help you and your client determine what is and what is not defective building work , this can be found on their website www.building.govt.nz.