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Does anybody have experience/ comments with Benchmark Homes in Christchurch

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Kelly

Does anybody have experience/ comments with Benchmark Homes in Christchurch? Was trying to look through using CTRL+F but didn’t find much information relating to them. Few questions for new builds: 1. Common pitfalls to look out for in a new build contract. I see that PC sum is something builders can use to add on cost. Any other glaring clauses one should pay attention to? 2. What is a reasonable cost now to build psm in Christchurch? 3. For land and build (staged payment, not turnkey), does sunset clause apply? 4. Any idea what is the typical number of homes builders like Greenland/ Orange/ Benchmark would build in a year?
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MJ

Hi Kelly, Hopefully Chris will weigh in here with regards to contracts but if you are planning to build in this current climate I would strongly suggest the very first thing you do would be to get some advice from a lawyer that specifically works with construction contracts. If the contract is biased and the building company won’t negotiate or change any terms then that is your biggest red flag to walk away especially if they use the good old “ we don’t need to remove that clause as we have never had to use it” speech. Don’t get hoodwinked by the sales team, that is their job and they will be very good at it but you can save yourself a lot of wasted time by asking for a copy of their standard contact quite possibly at the first meeting. You will see the ones that are most likely not above board the second you ask for this. If you get any resistance and plausible explanations as to why they can’t (or won’t) supply you with this then I would walk away. Unfortunately you will probably walk away from dozens of building companies before you actually find one who is happy to go over a contract with you and if this happens you should take it to a good lawyer. If the contract is lacking in any way then it makes no difference wether they supply a good finished product or not, your build could be the one exception to the rule and you won’t have any power to change it. If you find one that will work with you to create a contract that is fair for all then I would do more due diligence like asking for address of previous builds and to see if any of the owners are willing to chat with you. I don’t think you will find an accurate price for square meter to build as again, this will all hinge on your contract. Beware the building company that says it can build for a fixed price or for an amount that seems to good to be true because it will be. Contract. Start here. Good, thorough due diligence will take time so don’t rush it or you’ll miss something, this is the biggest investment you will ever make in your lifetime so be calm and practical and think with your head not your heart, that will come later.
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Chris C

Hi Kelly, I agree with everything MJ has said. I don’t know the current cost of building in Christchurch, but as MJ said it entirely depends on the Contract/standard of build. But I can add that, whatever you start out thinking it will be, the final cost will probably be higher. So if you don’t start out with at least 10% more you could find yourself in trouble at the end. As you can see, even from major Governments projects, they almost always go over budget, despite having Contracts and Specifications that weigh kilos, written by professionals. Not because they are all idiots. It’s just the uncertain nature of construction work. The possible pitfalls in a Contract are many and varied. MJ’s suggestion of a good lawyer is correct. But so that you know what questions to ask, I suggest you look at Mark Grahams building guide, the NZ Standard contract form and use Ctrl F on words like contract, franchise, PC, Provisional, PC Sum, Provisional Sum (as I’ve tried to explain before, there’s a difference). The NZ Building Regulations specify minimum requirements for contracts over $30K. ‘Sunset clauses’ are a complicated subject, and can mean different things to different people. Sometimes good for you the Client, sometimes very bad. On 20/10/20 MJ wrote a useful piece about the dark side. I’ve written a couple of times. Again try Ctrl F Due diligence is time consuming, hard work, and can be confusing, but very worthwhile. It may even put you off building altogether, which could end up being a good thing. I guess some people find the right builder, and have a good experience building their own home. But it seems many (especially those with no building experience) don’t, and if it goes wrong it can literally ruin your life.
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Chris C

Hi Kelly, Just realised MJ’s piece on the possible dangers of ‘sunset clauses’ (although I don’t think he actually used that phrase) was on 25/10/20. Try Ctrl F, and enter, ‘Someone who dealt with’
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Shane

You can ask for invoices related to Pc sums usually. Master builders contract says if you ask for more data and invoices on PC sums the company has to provide them.
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Kelly

Thanks all for the reply. Much appreciated. Any good construction lawyers in Christchurch for recommendation please?
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