SKILLS MAINTENANCE REVIEW DEFINES FOUR ... - PlaceMakers

More documents

Recommendations

Info

legalsimpson griersonMore than a handshakeWhile it’s great to put your faith in a handshake, it doesn’t provide the legal security and clarity of a written contractDo you have a written construction contract? While it’s not yet mandatory, it’s a great way toavoid disputes by clearly setting out the rights and obligations between contractor and client.Make sure yours has the right components!as many involved in the buildingindustry may be aware, overthe last four years, theGovernment has been in the processof reviewing the Building Act 2004with the aim of reducing the costs,but not the quality, of the buildingcontrol system.While it’s a good idea to getlegal advice on any contract,it is not mandatory, and youcan create your own contractto suit the way you and yourclients wish to workAs part of the proposed changes, thereis currently a law change beforeParliament, which will make it mandatoryfor certain types of construction workto have a written construction contract.The law change is also likely tointroduce new requirements that willneed to be included in constructioncontracts.Written construction contraCTsAlthough the requirement to havea written construction contract is notyet mandatory, contractors may wishto take the opportunity to consider:1. Whether they are currently usinga written construction contract and;2. Whether the written constructioncontract they are using clearlyand adequately sets out the rightsand obligations between thecontractor and the principal (client)in relation to the work that will becarried out.Having these things set out clearly inwriting is good business practice andhelps to minimise the chances of disputesand payment delays down the track.OPTIONs for a wRITTenCONstruction contraCTThere are a number of very good, andeasy-to-follow, standard constructioncontracts available. Members oforganisations such as the RegisteredMaster Builders have access to anexcellent range of written contractsthat can be used as is, or adaptedfor specific needs.For longer or more complex projects,the detailed standard forms (like NZS3910) are best. Many builders havealso developed their own bespokecontracts over the years.Story continued overleaf15
legalsimpson griersonKey things to include in a Construction Contract:Creating a contract can be inexpensive and fairly straightforward. While it is a good idea to getlegal advice, it is not mandatory, and you can create your own contract to suit the way you andyour clients wish to work. Broadly speaking, your contract can contain whatever terms you andyour client agree upon. But here is a list of the major terms your contract should cover:1. Parties to the contraCTSpecify who the parties to the contractare. Are you contracting as yourself,or your company?Who is your client? Are you contractingwith a company, a trust or the ownerspersonally?2. Date of the contraCTMake sure you include a date ofcontract. This can be important later on.3. Address or desCRIPTIONof the siteYou should identify the address wherethe work will be done. This is particularlyimportant if you are working on morethan one site owned by that client.4. Type of contraCTIt is important to specify the type ofcontract. For example, it could be:• A full contract, where you areresponsible for all labour materialsand site supervision, includingsupervision of your or yourclient’s subcontractors.• A labour-only contract.• A managed labour contract, wherethe client purchases materials andyou carry out and supervise work,including supervision of your orthe client’s subcontractors.5. Scope of work that willbe doneYou need to be as clear as possibleabout the exact scope of the work tobe done under the contract. This isparticularly important, if you are not incontrol of the entire project.If you are only responsible for part ofthe work, it is important to specify whois responsible for checking the interfacebetween your work and the work ofprevious or subsequent contractors.6. Other contraCT documentsConsider whether you need toincorporate other documents intoyour written contract, such as yourtender/estimate/quote, drawingsand specifications, building consentconditions or other documents.7. Variations to the contraCTYou should outline the process for howany variations to the written contract willbe handled. This may mean includinga requirement that variations be orderedand priced in writing and signed off byboth parties.8. Timing of the work thatwill be doneWhen describing the time frame inwhich the work will be completed, youshould include (as far as possible):• When you will start the work.• The estimated end date.• What happens if you’re late incompleting the work.• What happens if others delay you.16www.simpsongrierson.comwww.ccanz.org.nz
Page 1: Issue 25get your NOVEMBER 2013 skil
Page 4 and 5: TRAININGskills maintenanceIndustry
Page 6 and 7: FEEDBackBuilders’ BusinessQ:How d
Page 8: REGULATIONMBiE Building & HousingWe
Page 11 and 12: Key points for installationTimber w
Page 13 and 14: NEWSINDUSTRY focusGetting on with b
Page 15: NEWSINDUSTRY focusNew home trend fl
Page 19 and 20: SAFETYsite SAFEAre you prepared for
Page 21 and 22: insurancebuiltInSum insured, some r
Page 23 and 24: SAFETYMBiE Health & SafetyCaution w

SKILLS MAINTENANCE REVIEW DEFINES FOUR ... - PlaceMakers

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?