I’ve worked for multiple “group housing firms” (10 years total) and been in the...

Hi A Smith (real name?), Based on my own experience, while looking into using several different builders (both big name franchise and other) while planning a personal house new build, I definitely agree that many building contracts used in NZ are poorly written and/or biased in favour of the builder to an unacceptable degree. In one case the builder’s own contracts manager could not explain to me how and when a particular clause (involving extra payment if Council consent was delayed) would actually be used. ‘But don’t worry, we never apply it.’ he said. So I said, ‘In that case we can delete it.’ ‘Oh, no, the company owner won’t change anything in the contract wording.’ End of discussion. I spent my career, both overseas and in NZ, as a civil engineer, which frequently involved both interpreting and writing contract documents. Building contracts can vary quite a bit in the details of their wording, but I know what fundamentals should and should not be included. It’s not difficult to get an idea of what those are, by looking at something like the NZ Institute Of Architects Standard Conditions Of Contract, although unfortunately those can only be used if you actually have someone in the role of Architect to administer the Contract. So not really suitable as they stand for use by the majority of people who look at this blog. There are other quite well written forms of contract available, but most builders you approach will not want to use them. So you may be left with trying to make use of the form the builder generally uses. I’ve written some of this on this blog before. In my opinion: -The first thing you should look at (before any money changes hands) is their contract document, and ask whether they’re open to at least considering any kind of change if your lawyer recommends it. If they won’t show it to you, or say no changes are allowed, walk away. -Get someone who knows what they’re doing to vet it. Most solicitors will claim they know how to do that, but believe me many do not. You need a specialist in that area of law. -If you ask for changes to the document which the lawyer says are reasonable, and no compromise wording can be achieved, then walk away. -Be very doubtful if a builder tells you don’t worry, we’ve used this form of contract many times before, and never had any problems. No problems for them possibly, but maybe lots of problems for their clients.

You are correct in your statement as there are very few good ones out there of the franchised group housing coys. They buy into these companies solely on financial ability to fund being a franchisee for the franchisor. Not their ability to conduct a quality build, understand the build process, use quality products, price with integrity and complete the process with good communication and financial stability. It speaks volumes that Refresh Renovations are marketing on fb that they want business owners stating they do not want builders. I would have thought renovation work carries huge build competency requirements but apparently this company wants sales and marketing background people to run these ventures. Not many people realise that Oncore, Refresh and one other have same directors operating these businesses overselling areas to franchisees. Joe public are paying for these franchise fees same as group housing companies. This is the major issue with our industry currently and it has been happening for some time now. We are in disarray and the home owner is being conned by bullshit, hollow promises and fake news as to a build promise and understanding of expectation. For good companies and contractors it is a mine field of endeavouring to communicate to joe public that cheap means exactly that. Quality and longevity comes down the list rather than first on the list in selection for a builder. If NZers want to build sustainable long-standing issue free homes to enjoy and live in then look to partner with genuine providers who are there to deliver your expectations and dreams, not just take your money for personal gain. A great partnership is a win win for all not just frisk the builder or homeowner. For those out there asking for 3 or more quotes from builders you have not done your due diligence and your focus is price, not the complete picture. We as a renovation coy and new home builder work with stunning customers who come to us and we are the only price provider due to our quality of workmanship and our referral network. I so want to see independent quality NZ Builders step up to take back the residential construction market for the benefit of all parties.

Hi Chris (real name!?!?), your questioning of my name is somewhat bizarre & arrogant, perhaps it’s best you stick to the topic here whilst you rant about things you’ve never been part of. You are referring to the contractual side of house construction, which is an important part of getting what you want from your chosen home builder, these are there to safe guard both parties & can work for or against depending on circumstance. I cant argue with the common sense logic in what you put forward but you are focusing on a small part of how these businesses are run (have you ever worked in one before?). I’ve seen lives & careers destroyed due to due childish petulance & arrogance, treating subbies & suppliers like dirt is a fun game & smiling while they drop the axe is par for the cause. They use their position of power to use others as scapegoats for their own incompetence & simply refuse to acknowledge that it is themselves that leads to problems that are left with others to sort for them, often at great personal time &/or expense. You be sure to read that fine print & pay those lawyers… enjoy.

Hi A Smith, Apologies if I offended you by wondering whether ‘A Smith’ was just a name used to protect your real identity, since it seems you’re still working in the building business. But I agree it doesn’t really matter anyway, so I should not have queried it. I have dealt with a number of house builders in NZ (ie looking at their contracts and what they had to offer), and actually used a couple to carry out work for me. But I’m a civil engineer and I spent about 40 years preparing construction contracts, designing, supervising and project managing many projects overseas, plus a year supervising construction on a motorway project in NZ. My previous entry on this blog, which you responded to, was not intended to comment on everything you said about building franchises, as clearly they have seriously upset you. I totally agree that there appear to be many serious problems with how some of them are run, particularly the gap between a lot of their client’s expectations (eg help from head office if there are disputes, or things go wrong) and the reality. I have never worked for a building franchise, so I guess you know a lot more. I was just commenting on the part you mentioned about their misleading documentation. Because this is a subject I know something about, and it concerns me that many people seem to get quite far down the track with builders (including paying over design fees and deposits) before seriously examining the builder’s form of contract. To my mind the contract should be one of the first things you look at, because if that’s not acceptable there is no point in going any further. I only mentioned lawyers, because it seems many people who write to this blog are not in a position to judge whether a contract is OK. Of course it helps (and if you’re really lucky may be all you need) if you can find a nice, trustworthy builder who just does a reasonable job for a reasonable price, and wants to keep his client happy. I’m sure there are many around. But you and I who have worked in the construction industry know that if things start to go pear shaped, as they so often do, the only thing you have to fall back on is simply what’s in black and white in the contract. I’ll leave it to others reading your entries and mine to decide whether either of us has been ranting.

Hi Chris. Yes, your initial comment was irrelevant, not to mention childish & petty, it did not portray you in a very positive light as it was essentially an attack on my integrity (fancy that aye – someone taking offence to your arrogant assumptions). Yes, I still work in the building industry… do you need to see some form of formal documentation to prove that or are you happy to take my word?. As I’ve stated previously, your general train of thought is 100% correct & fairly sound advice, the way you chose to reply to & address me directly to get it across is questionable at best… put your thoughts & experiences across without personally attacking someone might a better approach? Food for thought Chris… all the best in your future construction endeavors.