Do you know that it’s a legal requirement to have a written contract with your builder if the scope of the project is more than $30,000? Whether your preferred builder submits a bespoke contract or one from the likes of Master Builders or New Zealand Certified Builders, I generally don’t recommend you accept the first cut of it. Here’s why.
DEFAULT CONTRACTS
The standard contracts in the industry favour tradies more than homeowners. I’m a strong advocate for a fair and balanced contract, as that way the builder is incentivised to do a good job, keeping the homeowner happy, but the builder is also still protected if the homeowner doesn’t pay their invoices or things change. Their livelihood is protected as well as your biggest asset. Win-win.
CONTRACT FORMATS
There are a few different formats, and usually builders have their preferred way to do business.
FIXED-PRICE LUMP SUM
This is when a fixed price is quoted for your entire project based on the documentation you supply to the builder, such as drawings, schedules and a scope of work. The builder cannot theoretically charge
