Builder discussion about contracts

For your own well-being stay away from Enjoinery – years of work and massive cost and time overruns and sloppy work which was non compliant and inthe end I had to fix myself have wrecked my health and financial ability to keep the place. Can provide photos such as bird sized holes in flashing, sub standard insulation and literally dozens of other faults – sadly as he was the freind of a friend I trusted him and had him on an hourly contract. To add insult to injury, they promoted my place on their website as an example of a successful project.

Hi there, we are about to sign the contract with Peter Ray homes in Christchurch. Can I please have some feedback about them regarding their time, cost and deliveries? Many thanks,

A warning to anyone having repairs for large Insurance claims. Monitor all the time and report back to your Insurance company anything you are concerned about. It may take multiple assessments to get your concerns addressed but worth it to ensure the repairs are up to standard. I’m still getting my claim sorted, over 2 years now. Finally the Insurance company had the job assessed by an expert and job not to standard and explicit instructions not followed. Shortcuts were made and the Insurance company notified many times to get problems rectified prior to this last report. In defense of the Insurance company they have attempted to sort things out but it has been long and drawn out. A stressful 2 years. Now having another company coming to rectify the other builders mistakes. I recommend not signing off the claim until you are 100% satisfied or if offered a payout don’t accept. I was offered payouts and fortunately I didn’t. The problems found are major.

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?

Hello, I am hoping someone can help me with some advice I entered a build contract in Feb 2021 with a national franchise to build a simple two storey home. To date progress has been excruciatingly slow, for a long time I gave them the benefit of the doubt as the previous home on the section needed to be demolished and this relied on external contractors but now that the build is on them and they are continually failing to meet any deadlines and make promises of work timeline that aren’t met. A concrete slab was finally laid March this year and to date they haven’t yet managed to complete the wall framing almost 3 months later. I drive past other builds regularly and see must faster progress. The speed of the build is causing me financial and emotional stress but the project manager and franchise owner don’t care and believe the speed of the build is reasonable and have heavily blamed covid. They have taken all access to timelines off me and when I ask for updated timelines and expected handover date either my e-mail is ignored, they tell me that timelines are just for booking contractors or give vague approximations of a handover date. The whole situation has left me feeling completely powerless and often in tears. I don’t want to name and shame the business yet but I wouldn’t want anyone to sign a build contract with them and have to go through what I am. They have all the power in this situation and can take as long as they want to build the house. I understand covid has caused material/trade problems but the delays I am seeing seem completely unreasonable. Is there anything I can do? Thanks

Hi All, I’d just like to draw your attention to an article in the NZ Herald today (17/3/22), page A7, concerning a legal dispute between some house owners’ and the Nelson franchise of G J Gardner Homes (LSK Builders Ltd). The dispute is obviously long standing and complex, and I have no comment on who is in the right. The point of interest is that it appears the builder has used a clause in the Contract to ‘register a mortgage over the title to the property’. I may be wrong, but I suspect the Contract may be the Master Builders one, which contains a clause like this. This issue has been discussed before in this blog. I’m not a lawyer, but in my opinion common sense should tell anyone about to build who is presented with a Contract containing a clause like this that they should ask for it to be deleted.

Hi all My name is Thuy, my partner and I signed a house and land contract with NZ first house = Eco Smart home since September last year. Until now there is no further process for anything, except the street name and house number. They keep telling us that house title has been released by council yet. We checked the director of Eco Smart Home, he seems has a history . The lawyer we use was suggested by Eco Smart Home, he told us the sunset date is October 14, 2020, if there is still no process till this date, we can cancel the contract. Is there any thought, experience about this? Or anyone has the same issue like us? Thank you

We are looking at a house and land package with Urban Homes (Waikato) having seen their show homes, but am seeking any feedback on their Hamilton operations; contracts; customer service, post construction engagement/maintenance etc etc.

I’ve worked for multiple “group housing firms” (10 years total) and been in the building industry for 25 years. Here’s the thing with 99% of these franchises… they are generally owned and operated by people with little or no knowledge of house construction and very little or no knowledge on how to actually run a business or manage the people within it. Directors very quickly get a god like complex and their ignorant opinions hold sway over fact and reality. They are more interested in hiring people who agree with them than those who actually know what they are doing… both firms I worked for where horrified when I told them that their documentation is misleading. It is quite literally a culture of lies, deceit, arrogance and incompetence being rewarded and applauded… honesty and integrity are quashed well before they have a chance to surface and if you highlight any of this you will be shunned, mocked and ridiculed. They chased me offering big dollars to do their work on contract after I left but in the end… I got sick to death of lies and deceit being employed to cover the arses of incompetent snakes.

My husband just finished getting his Nelson, NZ retirement home built. (I’m from USA) He used Signature Homes and learned a very expensive lesson. Signature Homes lured him away from Jennian Homes with lower prices and comments about Jennian being way over-priced. Turns out, Jennian was probably the honest builder, whereas Signature Homes took us for a wild ride. At first we thought they were just making lots of costly mistakes in judgement, but, in the end, we realize how they used the PC Sum trap to deliberately underquote the build. Some of their “costs” were 164% higher than their quotes! In all, we lost $58,000 due to their overages. We changed NOTHING in our plans. We are starting the process of a formal complaint. Has anyone here ever had any luck with getting these builders to honor their contracts or “price guarantee?”

Just doing some due diligence, anyone built with Greenland Homes Christchurch? What was your experience? How did they deal with any mistakes and were variations due to undervaluing of prime cost or provisional cost items common and add much to the contract price? Would you build with them again? Thanks

Halo drops builder insolvency clause: https://www.msn.com/en-nz/news/national/certified-builders-associations-insurance-policy-drops-builder-insolvency-cover/ar-AAGwcJJ?li=BBSVtLJ Of interest to everyone here.

Being in construction all my life I having sold multiple products in the industry and dealt with many building companies throughout. I am disgusted with the amount of shoddy building work that is being performed in our industry and the attitudes towards customers. It is crippling our industry and reflecting badly on the good ones striving for best business practice. It is a minefield of stress and worry for most people building and/or renovating and getting the right fit as a provider is paramount plus its nearly always the biggest amount of monetary investment made in most peoples lives. The public need to do their due diligence and I mean do their due diligence. Point 1 – we have just completed a build addition and renovation and the two other providers were nearly $400K above us (yes, $400K) and we didn’t cut corners and have made good coin and thats because we have good process, a great team and we pick the right sustainable jobs to build our business. Building does have a right price point but cheap is not always the way to go. Cheap comes with a low quality finish. You need to tick off all the boxes for supply, communication, follow through, personalities and robust business ethics. Contract contract contract limiting the likes of variations or where there are to be variations a set margin added. Point 2 – People think they can manage a build. Some might but some are just plain kidding themselves, want to supply items but don’t realise the ramifications on delays, wrong product and then expect builders to sit and wait whilst not charging for time. This is unethical and not good business practice and any builder who is prepared to do this will not be in business in future and as such you have no warranty comeback. Point 3 – selecting an lbp does not get you the right supply partner. An lbp can be anyone that is a builder but hasn’t done roofing, hasn’t installed windows, hasn’t laid flooring, hasn’t done foundations, has never built a complete residential dwelling from ground up. And people are selecting a builder just because they are an lbp not knowing this. Did you know that most group home builders use contract builders in their businesses and those same contract builders hold the lbp licence for future issues, not the group home builder. Most of these group home builders pay low rates to their contractors and that is why we have so many shonky workmanship comments on this site. Point 4 – there are companies out there marketing renovation franchises specifically detailing they don’t want builders in the business. This is a major issue for NZ going forward and the overheads for any franchise company are huge with franchise fees you pay for a build starting around the 5% mark upwards and all that goes into head office coffers. All I can say is that our industry is amok with disreputable and greedy companies who are not there for a win/win but just to take your hard earned cash and ce la vie so this brings me to my final comment. Do your due diligence, ask them what builds they are currently doing (minimum of 5) ask for referrals you can physically visit and demand to go to the ones of your choosing. Do not take their offered selections. Go to some of their suppliers and ask them what the business is like to deal with and if they are current in trading terms. This will give you a good indication of who you are signing up with and give you some perspective on what they are like. Sales people from most build companies don’t know anything but basics in building and will promise you the earth to get you to sign up and make that deposit. Then you are a captured customer and on the path of no return when the build cost climbs and the variations kick in. Diligence is paramount people PARAMOUNT !!!

It has taken me a long time to get up and write this as I try to move forward with building my home, managing the project with my Husband and watch as he works all hours to figure out how to fix all the problems that Gavin, one of the worst builders created. We probably have one of the worst building experiences on this website. We Hired Gavin and Peter Stewart but can’t presently give you full names or company names yet for legal reasons. They are both still in business though. I have learnt to cope with living in a very unfinished house for 5 years now as we save money, fix issues, learn new skills and build our own business to pay for it all. I simply just cope from day to day, month to month and winter is hard. Please anyone who is going to take on the challenge of renovating or building their new home don’t hire Gavin from Albany or Peter Stewart. I want to take them to court and I have consulted Lawyers but getting my house built has been the priority, and even writing this is hard because it forces me to remember everything and think about what has happened because I hired those two builders. We spent $330k with Gavin and Peter before firing them, leaving us financially hit hard. Our house was 90% new build. I can list all the things that were built badly and that list is long so you would need some time to read it all. Two of the major issues is that my entire house cladding was done really badly, the cladding was at all angles, the sizes of the weatherboards were all different and some of the cladding wasn’t even nailed onto the wood underneath so it was held up by the building paper, which was also done badly. The other huge problem was that all the walls, floors and ceilings were not plumb, not level, some on a stupid angle. My entrance way was a parallelogram when it was supposed to be a rectangle. The floor was so bad that most doors would have not opened/closed properly inside unless fixed, and figuring out how to fix all of this has cost my family about $200k. Most of the prenailed frames were way out of plumb, out of square, in fact I don’t think the builder ever used a level? The steel beams had to be re-done because they were so badly installed, the engineer failed them at first inspection. We had to recladd the whole house, ripping out the brand new cladding as it was installed so badly. Face sizing all wrong, out of level, boxed corners not meeting around corners. Even our foundations have needed extra repairs as the poles were done badly. Even when Gavin was on site he was fixing his own mess, but badly and at our expence. Our replacement building firm had a huge task fixing this, costing us another $200k, then they went into receivership so we are trying to manage this ourselves. No building firm is willing to fix this mess, most won’t even return a call.

We are the victims of a cowboy builder in Wellington. $50K of defects and associated costs so far. Our situation aside, was disgusted that he was already the subject of a LBP Board investigation for negligence while he was busy constructing our extension not to plans, consent or building code. Further inquiry reveals that to be an LBP you only need a carpentry qualification, two referees and a telephone interview. No character referees, drug tests, or even a police check. Investigations take months and months, with no restrictions or supervision of the builder (unlike other professions where they are either stood down or work under supervision). No wonder we still have leaky buildings. Of course if it goes wrong, the LBP can quickly shut down their company to avoid all claims. Good to see the government has announced a review of the construction industry: https://www.mbie.govt.nz/have-your-say/building-system-legislative-reform-programme-public-consultation?fbclid=IwAR0R3iEJk1jX86m5bJMjyxmnvvws1sGrV3M1uY2dhUOz3kwpqa4zfwrnC0U Hope other affected homeowners submit their experiences! If you are entering a construction contract, I suggest you add a clause for drug testing and police checks seeing as the licensing board doesn’t bother. Odd that a hammer hand or forklift operator may have to pass these basic requirements, but an LBP director can do what they like.

We recently had a terrible experience with latitude homes hawkes bay. Please don’t use them! Debbie the owner is unprofessional and worse customer service ever. They don’t seem to understand the variation process. We thought we had been very thorough in our specs and drawings and every turn they added money or delivered anything but what we had specified with excuses at every turn. We went over time and budget and still didn’t get what we wanted. The final product was rubbish. We went to lawyers but latitude homes didn’t seem to care and didn’t comply. We have now found two other couples in our small neighbourhood who have the same problems recently. We’ve had issues with costs for site works and foundations. Windows and doors arriving too large so the builder hacked away at the framing to get them to fit then made the holes too large and used extensive amounts of expanding foam to just fill gaps. They installed sliding doors that weren’t the ones we asked for then made us pay for new ones. We still have a double bed sitting in our hallway as they made the hallway unusually narrow and used narrow doors. We now cant fit a standard bed in to a 4mt by 5mt room! to be honest we didn’t think to even check. Terrible paint finish we still have holes in our walls where the electrician has moved plug sockets even though we moved in in October last year. Trying to get anything remedied has been a nightmare. Weve sent lawyers letters but they just don’t listen. We are not sure what else to do. We have concrete patios that are uneven and rough and multiple colors. The list goes on. The head office seems to have no control over the other franchises so these sorts of companies are terrible to work with. One piece of advice would be don’t go with a group type builder. In this case it seems latitude homes is just a logo that any ‘builder’ can buy and head office have no control over quality or if things going wrong. The business owner is unprofessional and extremely defensive as the builder is her son. Her son was often rude to us and had terrible time management often showing up to site in the late afternoon and then rushing to get things done leaving a un satisfactory result. In our opinion he was too young and inexperienced and if we had met him prior we would of cut our losses. We’ve built before and know the process and the two companies couldn’t have been any more different. Debbie at latitude homes is terrible to deal with and seems to have no process for anything. On our final inspection she showed up with no paper work and kept denying being able to see any issues. She took a scrap paper out of her handbag to write things on. It’s ridiculous. They kept using different contractors as they burn bridges and contractors don’t want to work with them. Then when work isn’t to standard we just get left with the mess or an additional bill. If you want to speak to us please contact me or reply to this message. Small claims court looks like our only other option.

Spoiler Alert: If you believe a Master Builder is actually giving you a “fixed price contract”, you are probably wrong. We have spent the last 2 months “dating” A1 Homes. We found a plan that could work, with a few revisions, and agreed specs down to the taps and window latches. We have built before, so know exactly what we want, and they provided a fixed price estimate (crucially, not a quote) to our specs. It seemed like a fair price so we were keen to continue. They then said we would need to spend $3,000 on drawings and colour consultants before they could give us an actual fixed price quote. That is a lot of money – we have previously had quotes done on concept drawings that cost us $1,500 and $1,955 respectively. Eventually we came round to the idea, but we asked to see the contract they intended to use before we forked over $3,000. That’s when it got hairy. A1 presented us with a “standard” Registered Master Builders Association contract. The problem is that Clause 46 of the contract (2018 edition) specifically allows the builder to charge us more if ANY aspect of the build turns out to be pricier than the fixed price quote. i.e. it directly contradicts the claim of a fixed price quote. Further, Clause 101 of the contract (which has grown by about 60 clauses since we last built, practically all of them skewed toward the builder), specifically allows for a situation where A1 is building for Mrs Smith down the road and if that gets delayed, they can delay your start and end date. And with Clause 46 locking in their ability to on-charge any costs that might arise because prices rose since they gave you a not-fixed fixed price quote, they’ve ensured whatever their project management skills, you will pick up the tab. Oh and by the way, they have your deposit of 5% while they retain the right to delay indefinitely while they finish Mrs Smith’s project. We queried these 2 clauses and a couple of others. A1’s response was simply that they don’t ever change clauses. They had no answer for my question of how they could claim they offered a fixed price contract when it wasn’t. They said they hadn’t charged more than the fixed price on the 2 years they had used the contract, which frankly didn’t give me enough peace of mind to hand them $500K on the back of a contract that still says they can crank up the price at any time. I spoke to a Director of Master Build Services who confirmed there was nothing stopping them deleting irrelevant clauses in the contract; A1 was simply choosing not to. In the end, we were not willing to risk our money on a “no surprises guarantee” that isn’t any guarantee at all and could potentially hold a very nasty surprise. We suggest you give this a lot of thought and question whoever you build with if they have the same wide-open clauses in the contract.

We are in the process of building with Stonewood in Rodney. Chaos! The left and right hand are doing different things. They are sending us variations to contract with huge additional costs with a complete disregard for our finances or any form of consultation before making changes. Their policy is not to give cost breakdown for these variations but instead you are expected to sign off thousands of dollars with a one line explanation in a language that someone not in the trade will struggle to understand. We are pushing back but believe me it is not making for a pleasant customer experience. I have heard that this is the same of any building company out there….it probably is…but would it not be nice to be with a company who does not make you feel fleeced every day? PS…at the time of writing this we dont even have the slab down so it is a long road ahead!

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Have had a look at many of these comments and my comments as follows. I am considering a new or major refurbishment and I have time to do considerable investigation. Some observations. Most people do not read the contract before signing or if they do skim over it and any queries whitewashed by the sales team. You cannot tar the franchisees of a particular franchise with the same brush. One might be useless in one area and good in another. I believe its too much effort for a franchisee to change their standard contract, most likely supplied by the franchisor and perhaps a few extra mods/additions by the local franchisee. While investigating a new build during 2015, Platinum Homes in New Plymouth would not change their standard contract. The contract is waited in the franchisees favour. The one post on GJ Gardener confirms my statement. Would be useful to hear from any one else on this aspect. Contractors in general, not just builders rub their hands if you make specification changes during the contract. They make money out of this. PC sums. You can do your own homework on this from a cost perspective. PC sums usually for kitchens, tap ware, bathrooms and lighting. If you don’t have time to do any legwork then be prepared to pay extra on PC sums as what you select is likely to exceed the sum allowed by design. One advantage with one of the bigger franchises is the possibility of them having tied up material supplier to get volume discounts not available to the small one man builder. This has to be weighed up against possible better service and lower overheads of the small builder. Having lived in SA most of my life and in NZ for the last 18 years I’ve come to the conclusion that builders are opportunists and will take as many shortcuts as possible and more if given half the chance. This is probably a world wide phenomena as well. As an Engineer I am glad that since the leaky homes debacle and Chch earthquake that the building standards have been tightened up and Licensed Building Practitioners are required to do building work. There are some people who call this red tape. I welcome it even if it adds $10 to $20k to the cost of a house.

Bloggers, why waste our time making comments on this type of blog!! GUYS WHO ARE WE? Mere homemakers, some first home builders and ignorant at building!! What good does it do to make less than favourable comments on a blog site like this – don’t bother!!! We need the government to sort these dishonest group building companies out. Yes whatever it is that your company does, no matter how you do it, you make a promise to each and every customer that darkens your virtual door. You enter into a contract, even if the terms aren’t explicitly stated. The consumer pays you something, and you promise to provide a product or a service. There are pledges of quality and quickness. Customer service involves living up to your word on these matters, but it really gets to shine when something goes wrong – correct? Here’s the thing. Mistakes are opportunities — golden ones. Here’s why. Studies show that a satisfied customer will tell 2-3 people about his experience with your company. A dissatisfied consumer will share their lament with 8-10 people and some will push that number to twenty and those twenty people will tell 100 people and so on. Is this bog site going to that many unassuming new home building families? But here’s the opportunity. An unhappy customer will become a loyal consumer if you fix his complaint and do it quickly. Eighty percent (80%) of these folks will come back to you if you’ve treated them fairly. That percentage rises to the upper 90s if you respond immediately. Every day you have the chance to transform your mistakes into returning customers — the kind who will tell other people good things about you. Imagine that. It is not so much the trades & suppliers who work for these group housing companies, (who, by the way are screwed down for the cheapest rate and then have to wait a month in Sundays to get paid), it is the actual group housing franchisees, who are making a killing in more ways than one, abusing us along the way. What is happening to the 1128 comments on this site, are the housing companies even bought to task about some of the horrendous dishonest behaviour and shoddy customer service when something goes wrong? We say get together and petition the government. We have taken this to our MP and lawyer, maybe you should do the same, and then maybe we can get some traction on this site. Otherwise post this site to your FB page and make an even bigger fuss.

Hi, Has anyone build with either GJ/Horncastle recently in Rolleston CHCH, about to signed a contract with one of them, trying to decide with one is it going to be… Any pros or cons will be helpfull

Hi, re the comment about builders getting fed up with clients seeing fixed price and then not doing proper research/not understanding bespoke designs…Some of us are reluctant new home builders, having lost our original homes in the Christchurch earthquakes. I knew absolutely nothing about building. Why should I? My occupation and background do not require it. Yet, over four years on, I am dealing with the complexities of an architectural rebuild. I think it would have been great if the building companies I dealt with had looked out of their own bubbles and realised that in this case, their clients’ ignorance is not something to be disdained and exploited. It is just normal, and so just realise that things need to be explained really well. For example, I never knew what a Variation was, never knew there was the margin I had to pay for anything after contract was signed. I did ask the BC, now is there anything I should know about extra costs, and they said no, assuming I suppose I knew about Variations and GDT. Hence i blithely signed the building contract 3 years ago, and now face forking out nearly $100,000 in variations, including margin fee and GST. Stuff like carpets and better wooden flooring, and upgraded bathroom fittings (the contract ones were underspecced, i later learned) I would have organised to be in the contract had I known…..