The New Home Construction Contract is a fundamental legal document used in New Zealand's residential construction industry when a property owner engages a builder to construct a new home. This contract type is essential for projects falling under the Building Act 2004 and Construction Contracts Act 2002, providing a legally binding framework that protects both parties' interests. It includes detailed specifications for the construction project, payment schedules, timeframes, quality standards, and warranty provisions. The document is designed to prevent disputes by clearly defining responsibilities and procedures, while ensuring compliance with New Zealand's building regulations and standards. It should be used at the commencement of any new residential construction project, before any construction work begins.
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1. Parties: Identification of the Owner/Client and the Builder/Contractor, including full legal names and addresses
2. Background: Context of the agreement, including property details and general purpose of the construction
3. Definitions and Interpretation: Definitions of key terms used throughout the contract and rules for interpreting the agreement
4. Scope of Works: Detailed description of the construction work to be performed, including specifications and standards
5. Contract Price and Payment Terms: Total contract price, payment schedule, progress payments, and payment procedures
6. Timeframes and Completion: Project commencement date, completion date, stages of work, and provisions for extensions of time
7. Builder's Obligations: Key responsibilities including workmanship, compliance with building codes, and project management
8. Owner's Obligations: Client responsibilities including site access, approvals, and decision-making timeframes
9. Variations: Process for requesting, approving, and charging for changes to the original scope of work
10. Insurance and Risk: Required insurance coverage, risk allocation, and liability provisions
11. Warranties and Guarantees: Building warranties, guarantees, and defects liability period
12. Default and Termination: Circumstances constituting default, remedies, and termination procedures
13. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
14. General Provisions: Standard contract clauses including notices, assignment, and governing law
1. Provisional Sums: Include when certain costs cannot be accurately determined at contract signing
2. Prime Cost Items: Include when specific items are to be selected by the owner during construction
3. Resource Consent Conditions: Include when specific resource consent requirements need to be addressed
4. Earthworks and Site Preparation: Include for sites requiring significant preparatory work
5. Staged Completion: Include when the project will be completed and handed over in stages
6. Specific Weather Provisions: Include for locations with challenging weather conditions
7. Retention Provisions: Include when using a retention scheme for quality assurance
8. Third Party Approvals: Include when works require body corporate or neighbor approvals
1. Schedule 1 - Plans and Specifications: Detailed architectural plans, engineering drawings, and technical specifications
2. Schedule 2 - Payment Schedule: Detailed breakdown of progress payments, milestones, and payment amounts
3. Schedule 3 - Construction Timeline: Detailed project timeline including key milestones and completion dates
4. Schedule 4 - Prime Cost and Provisional Sum Items: List of items with budgeted allowances and selection requirements
5. Schedule 5 - Building Consents and Approvals: Copies of all relevant consents, permits, and regulatory approvals
6. Schedule 6 - Site Safety Plan: Health and safety procedures and responsibilities
7. Schedule 7 - Materials and Finishes Schedule: Detailed list of all materials, products, and finishes to be used
8. Appendix A - Insurance Certificates: Copies of required insurance policies and certificates
9. Appendix B - Master Build Guarantee: Terms and conditions of the building guarantee (if applicable)
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