CONTRACTING SENSIBLY
The simplest way to protect yourself when you are a subcontractor is to have proper conditions of contract in place and, of course, proper insurances for the type of work you are doing.
BuildRight - Conditions of Contract
The reason for this is simple: when parties have considered their respective rights and obligations and recorded their agreement in writing, the possible areas of dispute or difference are reduced considerably. For example, one of the most common areas of dispute between parties relates to the price. The Contractor claims payment for items of work and the Principal disputes their liability to pay for this work on the basis that it was included in the Contract Price. If there is nothing in writing, the parties are left to argue backwards and forwards as to what was included and what was not. However, if the parties have a written contract that includes a breakdown of the works and the costs, there is an accurate record to refer back to and the dispute is more likely to resolve itself.
BuildSafe® has prepared Conditions of Contract which you are welcome to use at no extra cost.
The Conditions of Contract have been drafted in a fair and impartial way and are not weighted in favour of either party. We have prepared two different types of contracts for Owner's/Principal's to use: one for large projects such as an extension or new house and one for smaller projects where the nature of the work is relatively straightforward such as a deck or a new kitchen.
Find out more and download a copy of the contract here
It is a condition of using the BuildSafe® Security of Payment Scheme that you and your contractor have a signed contract and we invite you to review our conditions of contract if you do not have any other Contract that you are intending to use.
BuildSure - Insurance
If you are carrying out any form of building works, it is important that proper insurance is in place. The type of insurance required depends on the type of building work being undertaken but there are typically three main types of insurance.The first is Contract Works Insurance - this is generally taken out by the Contractor to cover damage to the property in the course of the works. It does not cover damage to an existing house.
The second is Public Liability Insurance - all builders and contractors who are self-employed should have this insurance as it protects damage to third party property such as if a pipe bursts and floods a neighbouring property.
The third type of insurance is Professional Indemnity Insurance - this is insurance to cover any shortfalls with the design prepared and some contractors and subcontractors whose work includes a large component of design such as where an Owner/Principal has employed a Contractor to design and build a new home generally have this type of insurance in place.
In addition to these specific insurances, it is important for Powner's/Principal's to advise their insurance company that they are about to undertake building work at their site as some policies do not cover alterations and additions to existing dwellings.
It is also important to note that building work done without a building consent may not be insured under any of the above insurance policies and you will need to confirm these details with your insurance company.
It is a condition of using the BuildSafe that appropriate insurance cover is in place before any work is undertaken. If parties who may not be familiar with the various insurance options available, require insurance - BuildSafe has established a partnership with Hornibrooke Dolan, who are insurance brokers experienced in the area of construction.
Please contact us if your have any questions or for further information on the BuildRight Contracts or Insurance on 0508 4BUILDSAFE.
About UsAt BuildSafe we are driven to be the most recognised and respected provider of a specialist security of payment service for the building and construction industry in New Zealand. This is because we believe that all home owners and builders who are doing building or renovation work deserve to have access to the very best information and services to protect themselves and to ensure that the building process is a positive experience. Find Out More |
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