Buyer Builder Agreement Template for New Zealand

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Key Requirements PROMPT example:

Buyer Builder Agreement

"I need a Buyer Builder Agreement for a residential property development in Auckland, New Zealand, where I'm planning to build a luxury three-story home with specific sustainable building requirements and a completion date of March 2025."

Document background
The Buyer Builder Agreement is a crucial legal document used in New Zealand's construction industry to formalize the relationship between builders and property owners/buyers undertaking construction projects. This agreement is essential for both residential and commercial construction projects, providing a detailed framework that complies with New Zealand's building regulations, including the Building Act 2004 and Construction Contracts Act 2002. It covers essential aspects such as scope of works, payment terms, construction timeline, quality standards, and dispute resolution procedures. The agreement is particularly important as it helps protect both parties' interests while ensuring compliance with local building codes and regulations. It includes provisions for variations, progress payments, warranties, and other critical elements required for successful project completion in the New Zealand construction context.
Suggested Sections

1. Parties: Identifies and provides full details of the Builder and the Buyer/Client

2. Background: Sets out the context of the agreement, including the Buyer's intention to engage the Builder for construction work

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Scope of Works: Detailed description of the building work to be performed, including any exclusions

5. Contract Price and Payment Terms: Specifies the total contract price, payment schedule, and payment claim procedures in accordance with the Construction Contracts Act

6. Time for Completion: Sets out the construction timeline, including start date, completion date, and provisions for extensions of time

7. Builder's Obligations: Details the Builder's responsibilities, including compliance with building codes, obtaining permits, and maintaining insurance

8. Buyer's Obligations: Outlines the Buyer's responsibilities, including site access, approvals, and timely decision-making

9. Variations: Procedures for requesting, approving, and pricing changes to the scope of works

10. Quality and Inspections: Standards for workmanship, materials, and inspection processes

11. Warranties: Builder's warranties and guarantees, including statutory warranties under the Building Act

12. Risk and Insurance: Allocation of risk and required insurance coverage

13. Default and Termination: Circumstances and procedures for termination, including default remedies

14. Dispute Resolution: Process for resolving disputes in accordance with NZ construction law

15. General Provisions: Standard contract clauses including notices, assignment, and governing law

Optional Sections

1. Provisional Sums: Used when certain costs cannot be accurately determined at contract signing, specifying estimated amounts for uncertain works

2. Prime Cost Items: Include when specific items are to be selected by the Buyer during construction, with provisional allowances

3. Subcontractors: Required when specific rules about subcontracting need to be established

4. Retention: Include when a retention regime is required for quality assurance

5. Liquidated Damages: Used when parties agree to pre-determined damages for specific breaches, particularly delay

6. Resource Consent: Include when the project requires specific resource consent obligations

7. Temporary Works: Required for projects needing significant temporary structures or facilities

8. Practical Completion: Detailed completion procedures for complex projects

9. Defects Liability Period: Extended warranty provisions beyond statutory requirements

10. Materials Supply: Include when the Buyer will supply certain materials

Suggested Schedules

1. Schedule 1 - Plans and Specifications: Detailed architectural and engineering drawings, technical specifications

2. Schedule 2 - Payment Schedule: Detailed breakdown of progress payments, milestone payments, and payment timing

3. Schedule 3 - Construction Program: Detailed timeline of construction activities and milestones

4. Schedule 4 - Site Information: Site plans, geotechnical reports, and existing conditions

5. Schedule 5 - Special Conditions: Any project-specific requirements or variations to standard terms

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and coverage requirements

7. Appendix A - Building Consent: Copies of building consent documentation

8. Appendix B - Cost Breakdown: Itemized breakdown of construction costs

9. Appendix C - Materials Specifications: Detailed specifications for materials to be used

10. Appendix D - Quality Assurance Plan: Quality control procedures and inspection requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate

Residential Property

Commercial Property

Property Development

Building and Infrastructure

Home Improvement

Architecture and Design

Project Management

Property Investment

Relevant Teams

Legal

Construction

Operations

Commercial

Procurement

Risk and Compliance

Property Development

Contract Administration

Project Management

Quality Assurance

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Property Developer

Building Contractor

Site Manager

Quantity Surveyor

Commercial Manager

Operations Director

Procurement Manager

Risk Manager

Compliance Officer

Development Manager

Construction Lawyer

Industries
Building Act 2004: Primary legislation governing building work in New Zealand, setting out the building control framework and requirements for building consents, compliance, and warranties
New Zealand Building Code: Regulations that set specific requirements for building work, including structural stability, durability, fire safety, and other performance criteria
Construction Contracts Act 2002: Regulates construction contracts, payment processes, and dispute resolution procedures in the construction industry
Consumer Guarantees Act 1993: Provides statutory guarantees for services (including building work) provided to consumers, ensuring work is carried out with reasonable care and skill
Fair Trading Act 1986: Prohibits misleading and deceptive conduct in trade, including representations about building services and materials
Health and Safety at Work Act 2015: Sets out obligations for workplace safety, particularly relevant for construction sites and building work
Property Law Act 2007: Governs property transactions and legal interests in land, relevant for building projects on real property
Resource Management Act 1991: Relates to environmental and planning requirements that may affect building projects and necessary consents
Licensed Building Practitioners Rules 2007: Regulates licensed building practitioners and sets standards for restricted building work
Contract and Commercial Law Act 2017: Provides general contract law principles applicable to construction contracts and agreements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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