Capital B Builders

RESIDENTIAL BUILDING AGREEMENT

LABOUR ONLY

Employer: _______________________________________________________________________
(hereinafter with their respective executors, administrators and successors called the “Employer”)

Labour only Contractor: _______________________________________________________________________

(hereinafter with their successors, administrators and assignees called the “Builder”)

BACKGROUND

A The Employer as an Owner/ Builder is undertaking a residential building project referred to in Schedule I of
this agreement at the property referred to in the Schedule (“the Works”).

B The Employer as head contractor wishes to engage the Builder to provide labour only building services for the
erection of the Works referred to in Schedule I.

C The Builder has agreed to provide the labour only services for the Contract Price defined in this Agreement
upon and subject to the terms and conditions of this agreement.

THE PARTIES AGREE AS SET OUT IN SCHEDULES I, II, AND III OF THIS AGREEMENT.

SCHEDULE I

Description of the Works (more fully described in the Plans and Specifications supplied by the Employer attached and
initiated by the Parties).

Address of Property

GENERAL

(i) The headings of clauses are for convenience only and shall not affect their interpretation.
(ii) Where the context so requires, working importing the singular shall include the plural and vice-versa.
(iii) Reference to any Act shall include all subsequent Acts and Regulations in amendment of or in substitution
for.

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CONTRACT PRICE
1. THE Contract Price shall be stated in Schedule II excluding Goods and Services Tax (“GST”) together
with all adjustments for variations or other Works or services as may be authorised by this Agreement.
GST at the then current rate shall be added to each invoice.

PAYMENT
2. THE Employer shall pay the Builder the Contract Price together with GST and any other charges or
adjustments authorised by this Agreement, as invoiced by the Builder, by the due date at the intervals
stated in Schedule II or as provided in the Special Conditions to this Agreement.

PENALTY INTERESTS ON DEFAULT

3. In the event of the Employer defaulting in the payment of any monies due and payable under Agreement
then the Builder may suspend all work, and without prejudice any other rights and remedies of the
Builder, the Employer shall pay compounding monthly on such monies due at a rate equal to one and a
half times the current overdraft rate payable by the Builder, or which would be payable by the Builder for
overdraft facilities, from the date that they were due to up to and including the date of actual payment.

ERECTION OF BUILDER ON LABOUR ONLY BASIS

4. a. THE Builder shall:
(i) satisfy themself that it is practical to erect the Works described in the Plans and Specifications.
(ii) commence the erection of the Works on a labour only basis or at a reasonable time after the
estimated commencement date stated in Schedule II, subject to:
(aa) receipt of any deposit required, evidence of insurances, together with copies of all necessary
plans and specifications and;
(bb) a Master Build 5 Year Guarantee being executed by the parties guaranteeing defects in
workmanship as covered by the Guarantee.
(iii) provide the labour to proceed with and complete the work specified in this Agreement
expeditiously in a tradesman like manner and in accordance with the relevant Plans and
Specifications.
(iv) carry out the work in compliance with the Construction Certificate for the Works, and
manufacturer’s fixing or installation instructions where these are applicable.
b. In the event of any discrepancy between the Plans, and the Specifications, the Plans shall take
precedence. Figured dimensions shall take precedence over scaled dimensions.

HAND AND POWER TOOLS

5. THE Builder will provide for their own use all the hand and hand power and maintain and service such
tools, for which no additional charge shall be made to the Employer.

CONSENTS / APPROVALS
6. THE Employer shall:
a. obtain the Construction Certificate together with all other approvals and consents required by
Territorial and other authorities for the carrying out of the Works,
b. provide the Builder with a true copy of the building consent issued for the carrying out of the Works.

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SETTING OUT OF WORKS
7. THE Employer is responsible for and shall supply at their expense if requested by the Builder, a registered
surveyor to confirm the proper and accurate set out of the Works.

MATERIALS TO BE SUPPLIED BY THE EMPLOYER

8. a. THE Employer shall provide all materials and components required for the Works which shall be as
specified in the Drawings and Specifications, and unless written Territorial Authority approval has been
obtained for the installation of previously used or second grade items then all materials and components
shall be new and of first grade.
b. ANY materials of components supplied that are not specified in the Drawings and Specifications or are
previously used, or are other than first grade shall be deemed a Variation in accordance with and subject to
the conditions of Clauses 2 and 14.
c. THE Employer will make all the materials and components to be used in the erection of the Works
available to the Builder so that the Builder may continuously proceed with the Works. The materials shall
be delivered and unloaded onto the site at the Employers expense try and in good condition, and where
necessary stored in a secure and dry place.
d. THE Builder may, at their absolute discretion, reject any materials or components which are faulty,
damaged, or below standard and the Employer shall be responsible for the cost and replacement of said
materials or components.

PLANT AND EQUIPMENT SUPPLIED BY THE EMPLOYER

9. EXCEPT as stated in Clauses 5 and 13 the Employer shall provide any plant, special equipment,
scaffolding form or false work that is necessary for carrying out of the Works and shall make such items
available to the Builder so that the Builder may continuously proceed with the Works.

UTILITIES SUPPLIED BY EMPLOYER

10. THE Employer shall provide to the Property, water, power, and sanitation and shall arrange for storage
and removal of waste.

OTHER CONTRACTORS
11. a. THE Employer shall arrange, employ and supervise any other Sub Contractors work or labour and
materials that may be necessary including, but not limited to, drainage, plumbing, and electrical trades,
and shall make arraignments for such work to commence and be completed in accordance with the
requirements of the Builder, so that the Builder may continuously proceed with the Works.

b. The Builder shall not be responsible for any defect, damage, delay or work of any other Sub Contractor,
or other person not in their direct employment, nor shall be required to provide tools, insurance, or
supervision for the use, or accept any responsibly or be liable for any claim that may result from the
employment by the Employer of such Sub Contractor or other person.

HEALTH AND SAFETY

12. a. The Employer shall take all practical steps to:
(i) provide and maintain a safe working environment and;
(ii) identify significant hazards, isolate, or minimise hazards where unable to be isolated and
otherwise prevent harm to the Builder, its servants and agents or to any other person.

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 b. The Employer shall indemnify the Builder against all claims which may arise as a result of a breach by
the Employer of any of the provisions of the Health and Safety in Employment Act.
c. The Builder shall comply with their responsibilities under the provision of the Health and Safety in
Employment Act.

HANDLING COMMISSION
13. THE Builder will, subject to the written and signed order of the Employer together with any deposit
required by the Builder, as written in Schedule H, on behalf of and as the agent of the Employer, arrange
hire or lease of any plant and equipment in the said order as may be required from time to time. The
Employer agrees that in consideration for this service they shall pay the Builder a Handling Commission
as stated in Schedule II which shall be a percentage of and in addition to the actual cost of the plant and
equipment and any transport or other related costs, but excluding GST.

VARIATIONS
14. a. THE Builder shall not accept any instructions to vary or alter the Works (or undertake handling
responsibilities in terms of Clause 13) other than by written instruction from the Employer.
b. THE Builder shall vary the Works as reasonably required by the Employer, or as required by the
Territorial Authority as a condition of granting or retention of the building consent but shall not be entitled
to claim payment for any variation not authorised in writing, as the case may be.
c. THE price of any variation shall be added to or deducted from the Contract Price, as the case may be,
and should the parties not agree on a price, the Employer may require the Builder to execute the variation
and the matter of price may be referred to arbitration in accordance with the provisions of Clause 22 or, as
their option the Employer may have the variation carried out by another person, in which case the Builder
will allow free and reasonable access to such person and their employees required but in accordance with
the conditions of Clause 18(c).

SUB-LETTING
15. The Builder will not assign this Agreement or sub-let any portion of the Agreement without written
consent of the Employer which shall not be unreasonably withheld.

ACTS, REGULATIONS, BYLAWS ETC

16. THE Employer will give all necessary Notices, arrange bonds and pay all necessary fees, provide statistics
and will comply with all provisions and requirements, Statutory or otherwise, relevant to the Works. The
Employer shall not require or request the Builder to undertake any work in the Plans or Specifications or
an alternative to a variation that has not been duly authorised by the Territorial Authority.

INSURANCE
17. a. THE Builder shall maintain Public Liability Insurance with an Insurance Company with indemnifies the
Employer against claims in respect of damage to property arising out of the operation of the Builder or
their employees and agents in connection with the Works. The policy shall be for an amount of not less
than $1,000,000 and shall be kept continually in force until the Works undertaken by the Builder are
completed.
b. THE Employer shall arrange Contract Works insurance for the Works. Where the works involve
physical change to an exciting structure(s) the Employer must also insure the existing structure(s) against
lost or damages. The insurance cover must be for full replacement value unless provided to the contrary in
the Special Conditions.

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 c. The insurance shall be in the joint names of the Employer and the Builder.
d. The Employer shall provide evidence on requires to the Builder that the required insurances are in
place.

DEFECTS AND DAMAGE

18. THE Builder will by their own labour arrangements and cost, make good any defects in their work or that
of the Builder’s employees or Sub Contractors engaged by the Builder under Clause 15 provided that:
a. the defective work is advised in writing by the Employer within thirty-one days of the Builder
completing that part of the works.
b. no repair or additional work has been made subsequently and in relation to the said defect other than
by the Builder.
c. the Builder shall not be held responsible for any omissions, defects or damage which arise from any
advice, design, technical specification or documents not directly commissioned or provided by the
Builder.

INSPECTIONS
19. THE Builder will comply with the Employers reasonable directions with regard to consultation or
inspection of the Works by the Employer or by any person or officer required or authorised by statute or
by law or otherwise required by the Employer, provided that the Builder’s time spent in relation to such
consultations or inspections shall be charged as extra if they total more than one hour in any five working
days.

LOST TIME
20. LOST time caused by delay in supply of materials, on site, meetings, waiting for Territorial Authority
Inspectors, stop work notices, non-attendance or completion by other Sub Contractor services engaged by
the Employer, or other persons shall be additional to the Contract Price and charged out by the Builder
and paid for by the Employer at the charge out rate stated in SCHEDULE II, unless such delay is the
responsibility of the Builder under this agreement.

DEFAULT
21. a. IF the Builder shall become bankrupt or goes into liquidation (other than for the purpose or
amalgamation or reconstruction), or has a receiver or a statutory manager appointed and the assignee,
liquidator, receiver or statutory manager fails within 10 working days to make arrangements satisfactory
to the Owner for the execution of the Works, or the Builder has failed to proceed with the Works with
reasonable diligence or is persistently, flagrantly or wilfully neglecting to carry out its obligations under
the Agreement, and the Builder has not remedied the default within 5 working days of receiving notice of
the default, then the Owner, without prejudice to his other remedies, may at this opinion cancel this
Agreement, However, this shall be without prejudice to the right of the Builder for adjusted payment for
work completed to date.

SPECIAL CONDITIONS OF CONTRACT

22. a. THE Builder will supervise and liaise with all sub-contractors directly referred by the Builders to the
best of their ability until the owner moves in.
b. THE Builder will supervise and liaise with any sub-contractor not directly referred by the Builders,
with the help of the Employer to the best of their ability but do not take responsibility for non-
performance of any sub-contractors.

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c. THE Builder will have sub trades fix and stop gib board to manufacturers specifications and will take
precautions to help prevent movement but aren’t responsible for gib-board movement.
d. Concrete cracks, even with mesh we advise spare tiles are kept on hand in case of movement when
house settles. Note: when moving in a home warm the house up slowly to help avoid movement as timber
is a natural product.

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