BUILDING CONTRACTS: THINGS TO CONSIDER BEFORE YOU SIGN

BUILDING CONTRACTS: THINGS TO CONSIDER BEFORE YOU SIGN

With any new build comes a mass of plans and decisions to be made – the location, the floor plan, the exterior cladding, the internal decor and the fittings. However, before shovels even hit the soil, one of the most important foundations to be laid for your build is the building contract with your builder.

Asking the right questions about your building contact can help avoid the cost of your new build unexpectedly increasing. This is particularly important if you have a limited budget or are accessing the First Home Grant scheme which has cap on the amount you can spend on your first home. 

Some of these key questions include:

  • What is included in the price of the building contract and what is not?
  • At what stages of the build will payments be due and does the amount of each payment align with the value of the work completed at that stage?
  • Does the building contract include any PC Sums or provisional sums? (PC sums and provisional sums are allowances for particular items or work where the actual cost is only able to be confirmed at a later stage.) 
  • Who bears the cost if your chosen materials are unavailable and more expensive materials are substituted?
  • Are you responsible for any aspects of the build or preparation, such as ensuring the boundaries of your property are correct?

There are many varieties of building contracts which have different answers the above questions. 

These questions represent just a small selection of matters that may arise in your building contract. We can assist with navigating this critical stage of your build by advising you on the content of your building contract as well as negotiating changes to ensure that the contract suits your particular project and price expectations.



BAYLEY ROYLANCE | Staff Solicitor
BA, LL.B.
+64 6 769 8059

bjr@rmy.co.nz | https://www.rmylegal.co.nz/team/bayley-roylance/