Signing a contract with one of the Auckland builders

Once the chosen Auckland builders have given you their quotes to build your new home, you or the architect have to have a close look at the submissions.

The cheapest bid is not necessarily the most economic one. The trick is to compare the tenders on equal terms and value the tags and the provisional sums. Common sense and good communication with the tendering Auckland builders goes a long way in making the right decision. Question the bidders until you are confident that all issues are covered. Clarifying points and putting them in writing before the contract is signed will save all parties a lot of headaches later.

Keep in mind that the contract sum is based on the information available at the time of tender. Any change to the design will have financial implications and more often than not will increase the final amount.

If you want to minimize the risk of a budget overrun, ensure that the drawings and specifications are completed before you go out to tender. Have resource and building consents and their conditions available for pricing. And don’t change your mind about any design aspects. Then you only have to carry the risk of unforeseen factors such as unknown ground conditions, unmarked services etc.

That would be ideal contract conditions, which are very rare.

It’s much more likely that details still need finalizing and that you get better ideas about materials or aspects of the design. And that’s quite alright. After all you want to be happy with your new home and if that means adjusting the design to new ideas – so be it.

Just insist that the builder informs you of any variations to the contract ideally before he carries them out and issues a financial report at least monthly. That way you can stay on top of the costs.

Time is of course another important point in the contract. Starting date and completion date should be clearly stated.

There are a number of standard contracts available. The main ones are from:

• Standards New Zealand: NZS 3902:2004 House Building Contract

• Certified Builders Association of NZ, (CBANZ).

• Registered Master Builders Federation, (RMBF).

• NZ Institute of Architects, (NZIA).

There are many more issues to be considered when signing a contract with any of the Auckland builders which can’t be covered here.

If you employ an architect he can give you all the advice you need.