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HOME TRUTHS Jason Bywater-Lutman and Thomas Refoy-Butler from Mackenzie Elvin Law explain the legal considerations around home renos. Jason Bywater-Lutman
I NTERVI E W N I CK Y A DA M S / PH OTOS S U PPLI E D
Q
I’m thinking about renovations to my property. What are the risk areas I should be aware of?
Renovating your home can be both exciting and terrifying. What you don’t need is the added stress of legal issues when things go wrong. Read on to find out about new home building laws and how to navigate and prevent problems with future renos. JASON: Construction can seem scary, but builders usually follow a defined process and use one of the many standard form contracts available, including a free basic construction contract released by NZ Standards. The type and value of your renovations dictate which types of contract you should use. When building, the first step is to pick your builder, get the plans and a quote, then come and see a solicitor to talk through the contract. Any contract over $30,000 must be in writing. THOMAS: It doesn’t have to be a substantial engagement; we highlight the risk areas, which gives our clients the ability to query and clarify any points with the designer/ builder before the contract is signed. It is much better to have those discussions up front – not halfway through the project. JASON: Most contracts are designed to make sure the builder gets paid regularly. The Construction Contracts Act protects the builder and makes it harder for you to hold money back from them. If you want to hold money back, you need a good reason and to follow a proper process, which we can help with. THOMAS: The Construction Contracts Act is a “pay now, argue later” regime. It is important to understand that the onus is on
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the homeowner to articulate the grounds upon which they’re not prepared to pay for work they’re not happy with. If that’s not communicated in the right way, and promptly, the payment claim becomes valid and enforceable as a debt due, even if there are issues with the work from a homeowner’s perspective. JASON: If a problem arises with the build, a ‘handshake deal’ to fix the problem doesn’t stop you paying for work you may not be happy with. You need to speak to your solicitor and follow the processes set out in the contract you signed and the Construction Contracts Act. THOMAS: At the conceptual phase, when you’re looking at plans and engaging with a designer, talk to your builder about your wish list – if you can find an established working relationship between designer and builder, that’s key. When they can work harmoniously the job runs in a far more streamlined, cost-effective manner. Ideally, your contractors are not learning to work together for the first time on your project. JASON: To avoid issues, focus on quality communication. If you or the builder change something, the best thing you can do is have a conversation about what the change is, how much it will cost and how long the change will take. You should always record these discussions in writing and share them with the other party. THOMAS: The important point for a person building, or renovating, their home is to understand what they are agreeing to. What costs are fixed and won’t increase, what can increase and by how much are important issues that need to be grappled with and will vary from builder to builder. How long things will take to be competed
Thomas Refoy-Butler
and who is responsible for the costs of delays should also be clearly set out. JASON: The builder does want to do a good job, because happy clients are their best source of referrals. Having a clear understanding of each parties’ obligations and expectations at the start of the construction process is essential. MACKENZIE-ELVIN.COM
