Builders Quotation Checklist - New Zealand Ministry Of Business, Innovation & Employment Page 2

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Step 3 - Hire competent building contractors
Ensure that your building contractor has the skills and resources to carry out the project.
You should -
ask around about the building contractor and get references for other work that the building contractor has done:
find out if the building contractor is a licensed building practitioner or has other appropriate qualifications. For more information
about licensed building practitioners, go to
determine whether the building contractor has sufficient insurance to cover the work while it is being carried out:
ask about the building contractor’s employees and what subcontractors the building contractor will use on the project:
if the building contractor is a company, look up its company records on the Companies Office’s Internet site. If your search
raises concerns, ask the building contractor to explain.
Step 4– Agree on price and payments
The contract should clearly state what payments are required and when. Where possible, a fixed price is preferable.
The lowest price is not always the best price.
You should -
get detailed quotes (not estimates) for the building work:
when comparing quotes, ensure that the scope of the building work and the materials and fixtures that you are comparing
are the same across quotes so that you are “comparing apples with apples”:
make sure you have the funds to pay for the project before the work begins and that you understand the payment terms
agreed with the building contractor:
think carefully before agreeing to pay more than the cost of the work that has been completed and the costs of any materials
that have been supplied at the time you make the payment.
Step 5 - Have a written contract
You should have a written contract. The contract should include items such as -
a description of the building work:
the start and completion dates for the building work:
how variations to the building work will be agreed:
the payment process, including dates or stages for payment and how payments will be invoiced, made and receipted:
the dispute resolution processes to be followed.
You should obtain legal advice to ensure that you understand your rights and obligations and that the contract complies with
all legal requirements.
Note: The Building Act 2004 requires that there must be a written contract for residential building work with a value of $30,000
or more (including GST), and the Building (Residential Consumer Rights and Remedies) Regulations 2014 prescribe matters that
must be included in every contract for residential building work with a value of $30,000 or more. You can find a copy of the Building
Act 2004 and the Building (Residential Consumer Rights and Remedies) Regulations 2014 on the New Zealand Legislation website:
Step 6 - Take control
All residential building work is covered by implied warranties prescribed by the Building Act 2004 that address matters such
as workmanship and building work being fit for purpose. For more information, go to
You should -
make sure there is a clear line of communication with the building contractor through the site foreman, the project manager, or
any other person who has authority to speak on behalf of the building contractor. (This person should be identified as the “key
contact person” in the prescribed disclosure information that the building contractor has provided along with this checklist):
when you are making decisions along the way, be clear as to whether those decisions will affect your contract and costs.
If you do decide to make a change, keep track of the effect of that change.
Step 7 - Resolving disputes
It is in both your interests and the building contractor’s interests to keep the building project running smoothly and to deal
with any disputes as they arise.
If you have concerns about the building project, raise them with the building contractor (or the key contact person) as soon
as possible.
Raise your concerns in good faith and use the dispute resolution processes agreed to in your contract. For information on your
options, go to
If you have received an invoice that you have concerns about, clearly outline your concerns to the building contractor in writing.
If you fail to make a payment when it is due, the building contractor might start dispute resolution proceedings before you have a
chance to explain why you have not paid. (Simply withholding payment when there is a dispute will often make the situation worse.)
Further information
For more information, go to or call the Ministry of Business, Innovation, and Employment on 0800 242 243.

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