Our standard NZS 3902:2004 Housing, alterations and small buildings contract will help give effect to amendments to the Building Act 2004.
The Building Amendment Act 2013 introduced changes to enhance consumer rights and remedies for residential building work, including mandatory requirements for residential building contracts to be in writing for work above a specified value and to contain certain information.
NZS 3902 provides a standard form of building contract agreement suitable for owners who are making their own building arrangements. Written in ‘plain English’, this standard was developed by a committee with a broad and balanced representation of stakeholder interests including regulators, industry, and consumer advocates. It is intended to be a fair and clearly understood contract that sets out rights and responsibilities for all parties.
Some of the detail of the new rights and remedies contained in the Building Amendment Act 2013 is required to be prescribed in regulations, which are due to come into force on 1 January 2015. They include:
- a minimum price for residential building work that requires a written contract and provision of a checklist and disclosure information
- the contents and form of information that building contractors must provide to clients, including default contract terms
- infringement offences and fees for failing to comply with the requirements of Part 4A of the Building Act 2004
- the commencement date for Part 4A of the Building Act 2004 and the regulations to be 1 January 2015.
Certified Builders is running a series of seminars to ensure building tradespeople across New Zealand are up to speed on these changes and what this means for the way they do business.
The free ‘ToolBox’ information seminars will be held in more than 30 centres across the country. They will cover important information about the law changes, which come into effect on 1 January 2015. The changes will affect most builders and other trades, with the introduction of new requirements such as providing correct pre-contract disclosures to all customers, having written building contracts, and being available to attend to customer reported defects for a 12 month period.
Experienced licenced building practitioners – together with staff from the Ministry of Business, Innovation and Employment, who will be attending a number of the events – will explain the new requirements, the types of information and forms needed to comply, sources for obtaining compliant building contract templates, and the consequences of non-compliance.