Page 100 - Build 165

Departments/LBP knowledge By Kimberley Gill, Investigator, Occupational Licensing, MBIE
Housing contract now free
If you’re a contractor, you must provide a written contract for residential building work costing $30,000 or more, GST inclusive. The good news is MBIE has provided a contract document you can use for free.
SINCE 1 JANUARY 2015, it has been mandatory to have a written contract with clients for all residential building work costing $30,000 or more, including GST, under Part 4A of the Building Act 2004. This does not apply to subcontracts between a main contractor and a subcontractor.
MBIE recommends you have a contract even if the work will cost less than $30,000 so everyone has an understanding of their obligations, requirements and expectations. Having a contract helps to protect both sides and can make life a lot easier if disputes arise in the future.
Free online contract
NZS 3902:2004 Housing, alterations and small buildings contract is a standard building contract for use with clients who engage you to build a house or do simple building work or alterations.
MBIE has sponsored NZS 3902:2004 so that anyone can download this contract for free from the Standards New Zealand website and use it to comply with the mandatory contracting provisions.
Meets requirements and helpful if disagreement
This contract is expected to be used mainly for house construc- tion, but can also be used without amendment for other small building works.
Using NZS 3902:2004 will ensure the terms of your contract with the client meet the minimum requirements set out in Part 4A of the Building Act 2004 (which requires a written contract as noted above). Know your stu : Consumer protection on www.building.govt.nz has further information on your other obligations.
Disagreements can happen during construction. If they do, NZS 3902:2004 sets out a disputes resolution process that may help you reach a solution. You may also consider getting legal advice when dealing with disputes.
Sometimes a di erent contract is needed
While NZS 3902:2004 is useful, it is not appropriate for all situations, and you may need to either seek advice or use other standard contracts that are better suited.
You can also prepare or have a lawyer prepare a contract for you, or the client (or their agent or designer) may propose using some other standard contract. This might be NZS 3916:2013 Conditions of contract for building and civil engineering – Design and construct.
For more NZS 3902:2004 can be freely downloaded and NZS 3916:2013 purchased at www.standards.govt.nz. They can also be purchased as a hard copy or online library subscription.
Contractors: Do your homework has advice on consumer protection measures and is available at www.building.govt.nz.
98 — April/May 2018 — Build 165