scope:

INTRODUCTION

What is this Contract for and who should use it?

The Boxes, subsequent general conditions, any special conditions (see Schedule 1), Schedules and Appendices as well as this introduction form the Contract.

This Standard is a type of building Contract for use by Persons (called the Owner) who want to engage a Builder to build their house, undertake Building Work of a simple nature or undertake alterations (called the Building Work). Although house construction is expected to be the main use of this Contract, the Contract refers only to "the Building Work" so it can be used without amendment for additions and alterations to existing structures and any other small Building Work, such as a garage, a farm building or small, commercial premises. This Contract must not be used as a labour-only Contract.

This Contract should not be used where the Owner has a professional expert design the Building Work and administer the Contract. In such cases the appropriate Standard is the New Zealand Standard Contract NZS 3910.

Where the Building Work is to be carried out on Land to be purchased by the Owner from the Builder, a separate sale and purchase agreement must be attached to this Contract.

Appendix A sets out a flow chart of the typical steps used in a construction contract.

If any disagreement arises between Builder and Owner see Section 16 of this Standard Contract. No kind of direct action, such as refusing a payment or stopping construction should be taken, without first obtaining professional advice. 

How to fill in this Contract

The Owner and the Builder should fill in two identical copies of this Contract attaching to each a copy of the Plans and Specifications for the Building Work. One copy should be kept by the Owner and the other by the Builder as a record of this Contract.

The sign appears in the margin alongside clauses that have a corresponding clause in the guidelines set out in Appendix B.

The numbers in the top right hand corner of the Boxes in Section 3 refer to a footnote with that number at the bottom of the page. The footnotes are to help you understand the details to be inserted in that Box.

Signing this Contract

The Owner and Builder must sign this Contract in Box A and should initial (in the bottom margin) each page of this Contract and also initial any words added or crossed out.

They should also initial every page of the Plans and the Specifications and separately initial any alterations. 

Builder's main obligations

The Builder must:

(a) Keep the Owner informed about the progress of the Building Work;

(b) Complete the Building Work as set out in the Plans and Specifications;

(c) Obtain insurance cover, as required by this Contract if a new building. See Box J;

(d) Obtain all Consents to carry out the Building Work unless the Builder and the Owner have agreed otherwise. See Box E and 11.2;

(e) Prepare a safety plan for the Building Work and the Site;

(f) Begin the Building Work on the Start Date unless the Builder is entitled to delay starting, see 11.3;

(g) Carry out and complete the Building Work with reasonable care and skill and in a prompt and timely manner;

(h) Undertake any Variations to the Building Work as requested by the Owner in accordance with this Contract;

(i) Complete the Building Work by the Finish Time unless the Builder is entitled to delay finishing, see Box D, 11.4 and 11.5;

(j) Fix as soon as practicable any defects in the Building Work notified in the Defects Liability Period; and

(k) Carry out the Building Work for the Contract Price as defined in 2.1.

Further obligations are detailed in Section 6. 

Owner's main obligations

The Owner must:

(a) Keep the Builder informed of concerns the Owner has about the Building Work;

(b) If the Builder requests, provide evidence as to the Owner's capability to pay the Contract Price;

(c) If building onto an existing structure, obtain insurance cover, as required by this Contract. See Box J;

(d) Obtain those Consents required for the Builder to carry out the Building Work if the Builder and the Owner have agreed that such Consents will not be obtained by the Builder. See Box E and 11.2;

(e) Give reasonable access to the Site to the Builder, Subcontractors and any other authorized Persons to enable the Building Work to be completed; and

(f) Pay the Contract Price (including the price of all Variations) and if Land has been purchased, pay the Land Price on time and in accordance with the Land Purchase Contract.

Further obligations are detailed in Section 6.