Owner’s name:

Street address: Lot xx, 165 Clark Rd, Hobsonville

RegisteredMasterBuildersAssociation
ResidentialBuildingContract

RBC1 –2016 (NEW BUILD)

ThisdocumentisonlyfortheuseofRegisteredMasterBuilderswhoareaffiliatedtoRegisteredMasterBuilders AssociationofNewZealandInc. Thisdocumentissubjecttocopyrightandlegalproceedingswillbetaken outagainstanypersonorfirminfringingthecopyrighton this document.

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TABLE OF CONTENTS

Page

REGISTERED MASTER BUILDER’S TO DO LISTII

OWNER’S MASTER BUILD GUARANTEE INFORMATIONIII

CONTRACT AGREEMENT 1

PART 1 –DEFINITIONS1

PART 2 - PARTIES AND SITE DETAILS 3

PART 3 - SPECIFIC PROVISIONS4

Contract Price4

Margin Rate4

Expected Start Date4

Expected Completion Date4

Invoicing and Receipts4

Details of the Works4

The Contract Documents5

Discrepancies (election of precedence)5

Insurance5

Payment Method5

STAGED PAYMENTS 6a

PROGRESS PAYMENTS SCHEDULE6b

CHARGE-UP SCHEDULE6c

PART 4 – ACKNOWLEDGEMENTS, SIGNING AND PERSONAL GUARANTEE7

ACKNOWLEDGEMENTS 7

Whether Building Contract Contains Special Provisions7

Acknowledgement that Checklist and Disclosure Information Provided7

SIGNING OF CONTRACT AGREEMENT7

PERSONAL GUARANTEE OF DIRECTORS OR TRUSTEES 8

PART 5 – STANDARD PROVISIONS OF CONTRACT9

UNDERLYING OBLIGATIONS9

RMB’s warranties9

Statutory compliance9

Owner’s title9

Health and safety 9

PAYMENT 9

Contract Price 9

Contract Deposit9

Owner’s undertaking as to finance9

Margins 9

Monetary allowances10

Cost fluctuations 10

INSURANCE 10

Insurance provided by the RMB 10

Proof of insurance10

THE SITE10

Survey pegs10

Utilities10

Right of access11

Unforeseen physical conditions11

Building site and Works to be kept clean and tidy11

THE CONTRACT WORKS 11

Drawings and Specifications11

Building and resource consents11

Care of the Works11

Land subsidence and earth fill11

Materials on site12

Sub-contractors 12

Owner’s work or materials12

CHANGES TO THE WORKS12

Variations12

Extra work 13

Unprocurable materials13

Changes to people doing or supervising the Works13

TIME 13

Commencement13

Completion13

Extension of time13

POST CONSTRUCTION 14

Notice of Practical Completion14

Possession by Owner 14

Code Compliance Certificate 14

Twelve Month Defects Warranty 14

DEFAULT 14

Default by the Owner 14

Suspension of Works for non-payment15

Default by the RMB15

Default interest15

Repossession of goods or materials 15

Memorandum of mortgage 15

Costs16

DISPUTE RESOLUTION16

Negotiation16

Mediation16

Adjudication16

Arbitration16

Litigation16

MISCELLANEOUS16

Jurisdiction16

Construction Contracts Act 200216

Notices16

Privacy 16

PART 6 - SPECIAL PROVISIONS17

REGISTERED MASTER BUILDER’S TO DO LIST
For RMB’s Use Only (this To Do List does not form part of the Building Contract; however, the RMB should use this list to check that the Building Contract has been properly entered into and that important forms are used).
Before Signing the Contract (please tick box to confirm)
Have the parties agreed the basis upon which any preliminary work is to be done(refer Documents Pack for an example of an “Agreement for Preliminary Work”)?
Has the Checklist (as required by Building Act regulations) been provided (refer Documents Pack for a “Checklist”)?
Has the Disclosure Information (as required by Building Act regulations) been provided (refer Documents Pack for an example of a “Disclosure Information” form)?
Is finance in place?
Have the parties resolved what insurances are required, and have they contacted their insurers?
When Signing the Contract (please tick box to confirm)
Are you using the correct contract (New Build version OR Additions & Alterations version)?
Has an Expected Start Date been identified and entered (page 4)?
Has an Expected Completion Date been identified and entered (page 4)?
Have invoicing arrangements been entered (page 4)?
What payment method has been selected?
Staged payments --page 6a
Progress payments --page 6b
Charge-up payments --page 6c
Other
Have Owners signed the acknowledgment that they received the Checklist and Disclosure Information (page 7)?
Have any Special Provisions been acknowledged (page 7) and inserted (page 17)?
Are agreed insurance policies in place?
If the Owner is a Company or a Trust, has a signedGuarantee of Company Directors or Trustees been provided (page 8)?
Has an application for a Master Build Guarantee been completed?
During the Contract (please tick box to confirm)
Have all variation agreements been committed to writing (refer Documents Pack for an example of an “Agreement for Variation to the Works” form)?
Has written notice been provided of any changes to the Expected Completion date (refer Documents Pack for an example of a “Notice to Owner from Registered Master Builder of Change to Details Arising Under the Building Contract” form)?
Has written notice been provided of any changes to the Contract Price (refer Documents Pack for an example of a “Notice to Owner from Registered Master Builder of Change to Details Arising Under the Building Contract” form)?
Has an application for a Master Build Guarantee been sent in?
At Practical Completion (please tick box to confirm)
Has a Notice of Practical Completion been completed (refer Documents Pack for an example of a “Notice of Practical Completion” form)?
If the RMB is acting as a residential property developer or a commercial on-seller, and the purchaser of the property is to move in before C.C.C, have they entered into a written agreement as required by the Building Act 2004 (refer Documents Pack for an example of an agreement form)?
Has the RMB provided the Owner with documentation setting out ongoing maintenance requirements?
Has the RMB provided the Owner with copies of any guaranties or warranties?
Has the RMB provided the Owner with copies of any insurance policies that remain applicable?
OWNER’S MASTER BUILD GUARANTEE INFORMATION
A Master Build Guarantee is not provided automatically by engaging a RMB. A separate Guarantee application must be completed and be signed by the RMB and the Owner. It must then be accepted and signed by Master Build Services Limited (“MBS”) before it is valid.
NOTE: Various guarantee products are potentially available. You should familiarise yourself with the options before choosing which best suits you. Details are set out in the Disclosure Information provided to you by your RMB. Further information can be obtained by contacting MBS on 0800 269 119.
Your RMB is able to provide you with terms and conditions booklets for the Master Build Guarantees. The application form is contained in these booklets. You must read these terms and conditions before applying for a Master Build Guarantee.
Your RMB may offer you the opportunity to apply for a Master Build Guarantee on residential work with a contract price of less than $30,000.00 (including GST).
Your RMB should offer you the opportunity to apply for a Master Build Guarantee on residential work with a contract price of $30,000.00 or more (including GST).

NOTE: If the Owner has not been contacted by MBS within 14 days after signing a Master Build Guarantee application they must immediately contact MBS on 0800 269 119.

If the Owner declines to apply for Master Build Guarantee cover, then they should assist the RMB to complete a waiver form (provided in the Documents Pack for Residential Building Contracts) and return it to MBS.

Please also note the following important points:

  • You will void the Master Build Guarantee if you cancel this Building Contract without MBS’s written consent (regardless of whether the RMB has breached this Building Contract and regardless of whether the RMB has consented to the cancellation).
  • A Master Build Guarantee only relates to the actual dwelling. It doesn’t cover other things a builder might provide, such as retaining walls, driveways, swimming-pools etc.
  • If you have a Master Build Guarantee and you discover a defect that might give rise to a claim, you must promptly notify MBS in writing.
  • Various Master Build Guarantee products are available, at different prices. If you elect to take out a Master Build Guarantee that does not have non-completion cover, you will not be able to claim for:
  • remediation of defects that were or should have been discovered before Practical Completion of the dwelling;
  • completion cover during the building of the dwelling (please also note that this completion cover is limited to the lesser of 10% of the Contractor Price OR the maximum of the completion cover sum specified the guarantee); or
  • loss of deposit (please also note that loss of deposit cover is limited to the lesser of 5% of the Contract Price OR the maximum loss of deposit cover sum specified the guarantee).

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Residential Building Contract RBC1 (New Build) – January 2016

 Registered Master Builders Association of New Zealand Inc.

CONTRACT AGREEMENT

PART 1–DEFINITIONS

For the purposes of this Building Contract, unless the context requires otherwise, the capitalised use of the following words and phrases have the following meanings:

Adjustments: means changes to the Contract Price, as a result of:

a variation agreement between the Owner and the RMB;

extra work and/or a change to the drawings and/or specifications made necessary by the terms or conditions of consent;

cost fluctuations (as specified in this Building Contract);

any increase in costs to the RMB resulting from a failure or delay by the Owner in complying with their obligations under this Building Contract;

Provisional Sums;

Prime Cost Sums;

additional costs (for example, increased hire costs for plant or equipment) resulting from extensions of time as allowed for under clause 59 of this Building Contract;

additional costs associated with utilities; or

any other matter specifically provided for in this Building Contract.

Building Contract: means the contract set out in Part 1 to Part 6 of this document; and includes the documents referred to at clause VII of the Specific Provisions.

Claim: means a written request or demand for payment. It can include a Payment Claim issued under the Construction Contracts Act 2002 or an ordinary invoice not issued under the Construction Contracts Act 2002.

Completion Date: means the date on which Practical Completion is achieved.

Contract Price: is the amount specified at clause I of the SpecificProvisions to this Building Contract and is the amount that (subject to Adjustments) is payable by the Owner to the RMB under this Building Contract.

Defect: means a fault or flaw in the workmanship or materials provided by the RMB or its agents; that consists of:

  • workmanship that has not been carried out in a competent manner and with reasonable skill and care.
  • materials supplied by the RMB that are not fit for purpose.
  • unauthorised use of second-hand materials.
  • a significant, adverse and unauthorised departure from what was prescribed by the drawings and specifications.
  • in matters not specifically prescribed by the drawings and specifications, a material and unauthorised departure from manufacturer’s tolerances (if manufacturer’s tolerances are not available, current tolerance schedules published by RMBA will apply, and if they are not available then current tolerance schedules published by the Ministry of Business Innovation and Employment will apply, and if they are not available then current tolerance schedules published by New Zealand Standards will apply).

For the avoidance of doubt, a “Defect” does not include:

  • fair wear and tear;
  • damage not caused by the RMB or the RMB’s agents (e.g. damage caused by the Owner);
  • defective workmanship or materials not supplied by the RMB or the RMB’s agents;
  • problems or damage resulting from the Owner’s failure to carry out normal or reasonable or prescribed maintenance;
  • problems or damage resulting from the Owner’s failure to follow the RMB’s reasonable instructions (e.g. adequate ventilation for new works);
  • further problems or damage resulting from the Owner’s failure to remediate or failure to advice the RMB once a defect became apparent; or
  • any matter that the builder is deemed to not be responsible pursuant to the Building Act 2004 or its amendments or other legislation.

Dwelling Cost: means all works contained inside the building envelope which form the dwelling structure.

Expected Completion Date: means that date at which the RMB genuinely and reasonably believes that Practical Completion will be achieved.

Expected Start Date: means that date at which the RMB genuinely and reasonably believes that permanent physical work will commence on site.

MBS: means Master Build Services Limited.

Other Items: includes works that do not form part of the dwelling structure. It covers preliminary costs, and covers special costs where it may be inappropriate or unfair for such costs to simply be included in a Dwelling Cost schedule. Unless the following items have specifically been included in the Dwelling Cost schedule, it will include (but not be limited to):

excavations or site works;

drainage and power and water connections;

site set up;

the total cost of all complete service connections;

retaining walls and driveways decks or pergolas; and

landscaping.

An “Other Item” may also be a Provisional or Prime Cost Sum.

Owner: means the party or parties (and may include their authorised agents) who have entered into this Building Contract on the basis that they have engaged the RMB to be responsible for the Works.

Practical Completion: means when the Works have been completed except for minor defects and minor omissions, which do not prevent the Works from being used for their intended purpose and which can be remedied in the defects period or at such other agreed time by the RMB without causing unnecessary inconvenience to the Owner.

Prime Cost Sums: means preliminary amounts included in the Contract Price for defined materials or fittings where, at the time of entering into this Building Contract:

  • the price for that part of the materials or fittings is uncertain;
  • precisely what materials or fittings are to be used is uncertain;
  • in the case of non-essential materials or fittings, the decision to incorporate the materials or fittings has not been finalised between the parties; or
  • any combination of the above.

Provisional Sums: means preliminary amounts included in the Contract Price for a defined part of the Works (particularly labour, but also including related materials where applicable), where at the time of entering into this Building Contract:

  • the price for that part of the Works has not been finalised between the parties;
  • the extent of that part of the Works is outside the control of the parties;
  • the extent of that part of the Works is unknown;
  • in the case of non-essential work, the decision to undertake that part of the Works has not been finalised between the parties; or
  • any combination of the above.

RMB: means the party (which may be a company) that has entered into this Building Contract on the basis that they have agreed to be responsible for the Works. “RMB” and “Registered Master Builder” mean the same thing.

RMBA: means the Registered Master Builders Association of New Zealand Incorporated.

Start Date: means the date at which permanent physical work commences on site.

Substantial Completion: means when the Works (or, where the context requires, a specific part thereof) is 95% completed

Sub-contractors: means third parties engaged by the RMB to provide services in respect of the Works; and includes Sub-trades, specialist contractors and contracted professionals and experts (but does not include carpenters or labourers who are contracted by the RMB on substantially a full-time basis for the duration of the Works, or the substantial portion thereof).

Sub-trades: means workers such as plumbers, electricians, flooring contractors, tilers, etc, who are contracted from time to time (but does not include carpenters or labourers who are contracted by the RMB on substantially a full-time basis for the duration of the Works, or the substantial portion thereof).

The Land: means the land where the Works are being carried out, as identified under the heading “Site Address” in Part 2 of this Building Contract.

The Works: means the building work shown and described in the drawings and specifications and described in any quotation (and, where the context requires, subject to consents and to variations) at the address/location shown in the Specific Provisions of this Building Contract.

Working Day: means a day that is not a Saturday or a Sunday or a public holiday (and that is not otherwise outside the definition of “Working Day” as provided by the Construction Contracts Act 2002).

PART 2 - PARTIES AND SITE DETAILS

THIS AGREEMENT made on the / day of
BETWEEN / The Registered Master Builder (also referred to as the “RMB”) is:
NOTE: Where the RMB is a company, insert full company name.
Nuline Construction Limited
RMB’s address
Level 4, 142 Broadway, Newmarket
RMB’s address for service (if different from above)
Notices under this Building Contract may also be provided to the RMB by emailing them to:

AND / The Owner(s) (full name/s) are:
NOTE: Where a trust is the contracting party, name the trust and trustees. Where a company is the contracting party, name the company.
NOTE to RMB: if the Owner does not own the building site, the provisions in clauses 83 to 87 will not be effective.
Owners’ Address
Owners’ address for service (if different from above)
Notices under this Building Contract may also be provided to the Owner by emailing them to:

Site Address

The location where the RMB will carry out the Works is:

Address
Lot No. / on Deposited Plan No.
(“The Land”)

PART 3 - SPECIFIC PROVISIONS

The parties agree:

Contract Price

I. / The Owner will pay the RMB the sum of
(words)
(numbers) $ / GST Inclusive;
being the Contract Pricefor the Works subject to Adjustments provided for in this Building Contract.
NOTE: / If the payment method selected is charge-up payments, insert the words: “the total of all charge-up invoiced claims”.

Margin Rate

II. / A margin of / % will be added to costs incurred by the RMB and passed on to the Owner (as provided in clauses 11 to 13 of the Standard Provisions of Contract)
Expected Start Date
III.Subject to the provisions of this Building Contract, the Expected Start Date for the Works will be
Expected Completion Date
IV.Subject to the provisionsof this Building Contract, the Expected Completion Date (i.e. the expected date of Practical Completion) for the Works will be
Invoicing and Receipts
V.The RMB may (but is not required to) render invoices that are payment claims pursuant to the Construction Contracts Act 2002. Where a payment claim is served under the Construction Contracts Act 2002, unless agreed otherwise, the payment schedule and payment of the final payment are due within seven Working Days of the date of the payment claim. In the case of invoices that are not issued as payment claims under the Construction Contracts Act 2002:
Invoices will be rendered (tick as applicable):
Upon substantial completion of item in staged payment schedule
weekly, or
monthly, or
other (specify)
Payment is due (tick as applicable):
Seven days after invoice issued
Fourteen days after invoice issued
other (specify)
Receipts will be provided as follows:
Details of the Works
VI.Details of the Works, including the material and products to be used are (tick as applicable, more than one box if required):
as included in the drawings and specifications
as included in the quote provided by the RMB
as included in Special Provisions
as included in the schedule provided by the RMB and/or annexed to this Building Contract
Other (specify)
The person supervising the Works will be
The person/s carrying out the Works will be
The Contract Documents
VII.The Building Contract documents include:
  1. This written agreement, includingSpecific Provisions, Standard Provisions of Contract, the Special Provisions (if any) and schedules or appendices attached (if any).

b. Drawings and specifications
  1. Other (specify)

NOTE: Details in the Disclosure Information form are provided based on the Builder’s knowledge at the date the Disclosure Information form is provided; however they are subject to change, and the Disclosure Information form (and its contents) does NOT form part of this Building Contract.