Building a house can be stressful and expensive so ensuring you are aware of your rights and obligations, and those of the builder, is crucial.

Prior to hiring a builder you should complete your own due diligence on:
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● your chosen builder

● your financial position

● the requirements of your lender during the build (if any)

● consents

● what the builder’s quote encompasses and what it does not

● the estimated build time.
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Thorough due diligence before entering into a building contract and starting the build can help to reduce costs, aid the builders and ensure that no unnecessary delays/costs are incurred.
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For a build of over $30,000 the builder is required to provide you with a building contract. There are four groups of documents your builder needs to provide you with:

1. a written building contract to be signed and dated before the work is carried out

2. a Ministry of Business Innovation and Enterprise (MBIE) consumer protection checklist

3. a MBIE disclosure document

4. copies of the various documents to be given to you at the end of the job (insurance policies, guarantees, warranties, maintenance requirements).
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Building rules and regulations are always changing so contracts should be reviewed on a case-by-case basis. Building.govt.nz also has a standard checklist for you to review which lists what you should expect to see in your contract.

Given the investment made in a build, it is highly recommended that you review these documents with your lawyer so they can explain the terms and raise any ‘red flags’ in the contract before it is signed.

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