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Terms of Business

Contracts, Warranties & Insurance

A written contract, even for minor renovations, helps everyone identify expectations and responsibilities. From 1 January 2015, it is compulsory to have a written contract for any projects over the value of $30,000.
Verbal contracts are more difficult to remember over time.
The contract clarifies a cost-plus arrangement, noting who is organising which contractors and materials and how payments are to be made.
It is pragmatic for smaller renovations, such as a bathroom remodelling.
For larger projects, such as an extension or addition of a basement, some clients wish to have a clearly stated defaults/deferred items period with a percentage of the project cost retained over this period. It is then necessary to clearly describe what constitutes builder's practical completion. From 1 January 2015, the default period for all projects is 12 months.
We particularly recommend the New Zealand Certified Builders Association contracts (samples available upon request)
Note - Certified Builders offer their own guarantee over and above The Building Code. This is called Halo 10 Year Residential Guarantee and is submitted to BrokerWeb Risk Services before work commences.
We carry Public Liability Insurance with a cover of up to $5 million with Vero, as well as Errors & Omissions Indemnity Insurance which is with Built-In NZ.
We recommend the homeowners take out the required Contract Works insurance with their own insurers.
Our Certificate of Incorporation is available to view here.
 

In summary:


The builder's insurance responsibilities are:
  • public liability (which includes statutory liability)
  • errors and omissions
optional but desired are:
  • employer's liability
  • financial exposure insurance
Of these we have public liability and errors & omissions

The homeowner's responsibilities are:
  • contract works
  • house and contents insurance

Warranties:
We are accredited to issue:
View our Errors and Omissions Certificate
 
Consultation

An initial meeting is, of course gratis. From it, Hans, the architects and clients can gain an idea as to whether or not they can work with each other. Issues discussed would include Hans' assessment of the plans, approximate time and cost of the project, availability of contractors. Often, there will arise a client list of items to be clarified, such as minor variations to consider.

 
Payment

We present our invoices fortnightly with receipts from other contractors and materials suppliers arranged by ourselves.

This serves two purposes -
  1. The client has transparent accountancy of a cost-plus contract.
  2. The client has full information of exactly where their money goes and can keep track of their budget.

Contact Us


icon phone foot09 629 3210    

icon phone foot021 760 661 

icon mail footwendy@ellehuus.co.nz
 

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