Building Contract Guide for Clients
Building Contract Guide for Clients
When undertaking a new build in New Zealand your agreement with your team will naturally require contracts with each. The contract between the Construction Company and the Construction Client is a vital document that governs their relationship. It specifically outlines their mutual agreement for the Construction Company to design, construct, and deliver a building on a piece of land specified by the client. This contract delineates the roles, responsibilities, and expectations of both parties involved in this project.
- Definitions and Interpretation: Terms like "Adjustment," "Building Warranties," and "Contract Price" are defined to ensure clarity throughout the document.
- Fixed price builds vs charge up contracts: This needs to be clear in the building contract so you don't get stung.
- Approval of Final Plans: The Construction Company will prepare final construction drawings and specifications, requiring the Construction Client's approval, which must not be unreasonably withheld.
- Commencement and Completion of Works: The document stipulates when construction begins, how consents are obtained, and the Construction Company's responsibilities to progress work diligently and in compliance with legal standards. It includes details on handling variations, substitutions, and adjustments to plans and specifications.
- Payment Terms: Details on the Contract Price, progress payments, and how payment claims and schedules are to be handled are provided, including mechanisms for dealing with disputes over payment amounts.
- Delays and Extensions: Conditions under which the target completion date can be extended are outlined, addressing delays caused by either party or external factors beyond the Construction Company's control.
- Insurance Requirements: The Construction Company must maintain appropriate insurances until the completion of the building works, at which point the Construction Client takes over responsibility.
- Default and Remedies: Actions that can be taken if either party defaults, including interest on unpaid amounts, suspension of work, or termination of the agreement, are outlined.
- Health and Safety: The Construction Company is responsible for maintaining a safe work environment and complying with the Health and Safety at Work Act 2015.
- Dispute Resolution: A process for negotiation, mediation, and arbitration in case of disputes is detailed.
- Miscellaneous Provisions: The contract covers various other standard contractual provisions including the entire agreement clause, notices, copyright, and limitations on variations to the contract price.
The contract comprehensively covers the responsibilities, obligations, and rights of both the Construction Company and the Construction Client regarding the building project, including how to handle adjustments to the plan, payment, delays, insurance, and disputes.
construction project agreement, building contract essentials, construction client guide, construction company responsibilities, finalising construction plans, construction consents process, payment terms in construction, managing construction delays, construction insurance requirements, default remedies construction, construction health and safety standards, dispute resolution construction, construction contract variations, construction project completion, building warranties explained, construction milestone scheduling, project budget adjustments, construction quality control measures, construction client rights, construction company obligations, contractor-client communication, construction project insurance, handling construction disputes, achieving practical completion, construction contract negotiation
