Weekend Herald

Value in written contract

- DIANA CLEMENT

New Zealand homeowners are too laid- back when it comes to written contracts for building work and assume being licensed means builders have a higher standard of training, skills and experience than is required under the Licensed Building Practition­ers scheme.

These are some of the results of a survey of 1000 Kiwis carried out by New Zealand Certified Builders ( NZCB).

More than half ( 51 per cent) of homeowners who had used a builder in the past 10 years didn’t have a written contract for work done by their last builder. Of the work done without a written contract, 22 per cent was for work worth more than $ 30,000.

NZCB’s chief executive, Grant Florence, says the survey highlighte­d the importance of consumer protection measures, such as the change last year to make written contracts mandatory for building work over $ 30,000.

He cautioned awareness still needs to be raised in the industry and among consumers about the mandatory requiremen­t for contracts and the importance of written contracts. “The survey found that 46 per cent of homeowners think it’s the builder’s responsibi­lity if something goes wrong with a build or renovation. The reality is, if there’s no written contract in place, this makes it difficult to resolve any issues. Having a contract is important for spelling out duties and obligation­s in relation to building projects.”

The organisati­on provides template contracts for its members to use, and has introduced a mandatory building guarantee, which applies to every new home build or home building alteration over $ 30,000 that is undertaken by an NZCB member.

The survey also found that 90 per cent of homeowners thought having a formal building trade qualificat­ion was a requiremen­t for a builder to be a Licensed Building Practition­er ( LBP).

“Trade qualificat­ion isn’t a requiremen­t under the LBP scheme, and in terms of profession­al developmen­t, while the LBP Skills Maintenanc­e Scheme has been strengthen­ed, in our view it doesn’t go far enough,” says Florence. He says all builders are required to do is read LBP News, identify two examples of onthe- job learning over the two- year licensing cycle and undertake some elective activities to earn points, to maintain their licence.

“Like the homeowners who responded to our survey, we’ve always thought the LBP scheme should require trade qualificat­ion, as well as a more stringent skills training pathway. This would further lift the standards of training and skills across the industry, which is in the best interests of consumers,” says Florence.

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