- Legal requirement for all residential building work over $30,000 (inc GST and work undertaken by sub-contractors).
- MBIE are undecided whether they will provide a template.
- MBIE have suggested builders work with their associations and if they don’t belong to one they should use NZS 3902 (Housing, alterations and small buildings contract).
Standards NZ have just released a range of questions and answers on NZ 3902. These are available on their website and explain how to get the most benefit from NZ 3902 and avoid any issues.
Housing, alterations and small buildings contract
Provides a standard form of building contract suitable for owners who are making their own building arrangements. Written in 'plain English', this standard was developed by a committee with a broad and balanced representation of stakeholder interests including regulators, industry, and consumer advocates.
It is intended to be a fair and clearly understood contract that sets out rights and responsibilities for all parties.
The Building Amendment Act 2013 introduced changes to enhance consumer rights and remedies for residential building work, including mandatory requirements for residential building contracts to be in writing and to contain certain information.
Using NZS 3902 will help you give effect to these amendments to the Building Act 2004. The new Contract Agreement in electronic form, used in place of the existing Section 3 form, allows the standard to comply fully with these changes without modification
If you join a trade association such as Certified Builders or Master Builders you will receive access to their contracts. Click here to find out more information about these trade associations.
The NZ Institute of Architects (NZIA) also offers a range of contracts. The NZIA have a "short form" contract and a "small works" contract.
There are some elements of these contracts that would need to looked at carefully to make sure they work for your business and your unique situation. This is particularly true for elements such as retentions, fixed completion dates, liquidated damages, etc.
Geoff Hardy is providing a highly modified and customised version of NZS 3902 for a standard charge of $1000 excl GST. Madison Hardy will guide you through the contract.
That is a one-off charge and the contract can be used over & over again (at least until the law changes).
If you are interested in speaking to Geoff Hardy or the Madison Hardy legal team about contracts please contact them:
Phone: 09 970 9569