Hi all Looking for a reliable builder to built 2 new dwelling units (each about...

Hi Everyone. Can some please clarify to me what the maximum percentage a P C -Sum can vary? Are there any laws within the Consumers Guarantee act that governs and protects the owner as far as this is concerned?

Hi Hutton Contracting done a fabulous job on my two dwellings out at beach rd browns bay. they are high quality builders that have built nice houses in the past. you can find him online huttoncontracting.co.nz.

No there isn’t. Try to have as few as possible because no doubt they will add on where they can! We’ve learnt the hard way.

Hi Shas, This is a complicated subject (which I’ve written about on this blog before). I’m not sure that Janine & Martin are entirely right in saying there is no limit in the amount a PC Sum can vary, if by that they mean it’s outside your control. I agree you should try to keep them to a minimum, but as I mention below it’s not PC Sums that are really the problem. It’s Provisional Sums that cause most problems. But if the work under these items is required anyway to complete the job, then unless you got a really watertight fixed price contract (which is very rare) you’re going to pay for it anyway. You’re best bet is to anticipate the problems, and try to minimise the builders room for padding costs, by putting in realistic sums, or getting rates for the work upfront. First make sure you are using the right terminology. In NZ Prime Cost (PC) sums generally cover the cost of items you know you will want, but the specific items may not yet have been chosen. In this case it is important that the contract makes it clear that it is you, the client who does the choosing. So if, for example, the contract allows $2K for supply of an oven, or $50/sq m for carpet, and you choose a more expensive oven, or more expensive carpet, then you must pay the difference. But if you choose less expensive items you should be credited with the difference. It’s up to you to make sure PC sums are realistic for what you want. Ask the builder before signing the contract which supplier he uses for these things, and check out how much they charge for what you want. Some contracts allow you to supply your own stuff, but that can cause complications with warranties. A Provisional Sum (or Quantity) is an amount that has been included for work where the requirement for, or extent of the work, is not known and can’t be determined prior to signing the contract. Obviously this means that the final quantity of the work, if any, is usually completely outside the control of the client, and in many cases outside the control of the builder. It may be determined by the engineer or by Council requirements etc. Typically this would for things in the foundations, like excavation of unsuitable material, or depth of piles, which can only be known exactly after work starts. In theory I suppose you can say this is unlimited, and certainly most builders will try to underplay it when they give an initial price. But in reality an experienced builder is expected to be able to make a reasonable estimate prior to starting work, especially if you’ve had a detailed site survey and some simple site investigation done before talking to the builder. And of course you can always ask an independent quantity surveyor or engineer to estimate a reasonable figure before you sign the contract. If it came to a dispute I think a court or arbitrator would tend to side with the client, as the less experienced party, who did not write the contract. My suggestion would be to try to put in the contract at least some Provisional Quantity of these things, so you can get a price per cubic/square/linear metre. Then if the quantity changes it can be measured, and paid for at the agreed rate. It’s not just a sum the builder has dreamed up! I’m continually surprised that so many people in NZ go into house building with almost no knowledge of building contracts, and without taking independent advice.