Scope and specifications
The contract should make clear what is included, what is excluded, which plans apply, which specifications apply, and what happens if drawings and written specifications conflict.
Before signing guide
Building contract checklist for NZ homeowners
The building contract is where many later disputes are either prevented or quietly baked in. Before you sign, check the legal company, scope, price assumptions, variations, delays, defects, and guarantee documents as one connected picture.
Read the contract like a risk map
A building contract is not just paperwork. It decides who carries cost risk, who can approve changes, when money is due, how delays are handled, and what happens if the finished work is disputed. If those answers are vague before signing, they are usually harder to fix later.
New Zealand's Building Performance guidance says residential building work costing $30,000 or more, including GST, must have a written contract. It also recommends written contracts more broadly because they clarify expectations, roles, payment, quality, and dispute steps.
Checklist
Six contract areas to check carefully
Price, allowances, and exclusions
Separate fixed-price items from provisional sums, prime cost allowances, exclusions, owner-supplied items, council fees, groundworks, and connection costs.
Payment schedule
Check when payments are due, what evidence supports each claim, whether payments match progress, and what happens if a variation or defect is disputed.
Variations
The contract should explain who can approve variations, whether approval must be written, how margin is calculated, and when timing or price changes are confirmed.
Timing and delays
Look for start dates, practical completion, extension-of-time rules, weather allowances, supply delays, homeowner decision deadlines, and consequences for delay.
Defects and handover
Check the defect process, final inspection, producer statements, code compliance certificate pathway, manuals, warranties, and any maintenance obligations.
Due diligence
Contract checks and builder checks belong together
A good contract with the wrong company is still risky. A strong builder with a vague contract can still create variation, delay, and defect disputes. Check the person, the company, the brand, and the paperwork before you commit.
Confirm the legal company
Make sure the company named in the contract matches the quote, invoice details, bank account, NZBN, and any guarantee application.
Check the LBP record
If restricted building work is involved, check who will perform or supervise it and whether their licence class fits the work.
Search discussion history
Look for recurring issues around delays, variations, communication, workmanship, and handover before the same issues appear in your project.
FAQ
Building contract questions
Do I need a written building contract in New Zealand?
For residential building work costing $30,000 or more including GST, a written contract is required. Written contracts are also useful below that threshold because they reduce uncertainty.
What should I check before signing a building contract?
Check scope, exclusions, allowances, variations, payment stages, timing, defects, warranties, dispute steps, insurance, and the exact legal company you are contracting with.
Are provisional sums and prime cost items risky?
They can be. They are allowances, not always fixed final costs. Ask what has been assumed, how realistic the allowance is, and what margin applies if the actual cost changes.
Should a lawyer review my building contract?
For a high-value build, independent legal review is sensible before signing. A lawyer can explain risk allocation, payment terms, variation clauses, delay clauses, and dispute processes.