Home News Builders business Handling new protection measures

February 2015

Handling new protection measures

27 Jan 2015, Builders business, Feedback

Builders’ Business is a column by builders for builders. Its objective is to provide a forum, particularly for small business operators, in which to share knowledge, experience, tips and ideas.

 

How are you dealing with the new consumer protection measures?

Firm: Quality Construction
Principal: Dan Albert
Location: Porirua
Staff: 3 (1 apprentice)

We’re already doing a lot of what’s included in the new consumer protection measures, and have been for quite a while now, but we’ll have to formalise some processes to ensure we’re within the scope of the new regulations.

We’ve been using contracts from the get-go and the one we have is compliant with the new requirements. While we haven’t offered disclosure in an organised form, all of our estimates have references, referees and links to the work we’ve done; so we’ll have to add some detail, but it’s not a foreign concept.

Another area that we’re already across is the requirement to provide maintenance instructions. The last thing we want is a callback four or five years down the road, so we always provide basic instructions regarding the most important aspect of the building – the building envelope – as well as supplier maintenance literature.

Overall, I would say most builders are already fulfilling most of the new protection measure requirements in some way or another; it’s just a matter of ensuring they’re in line with the new regulations. It might seem like a headache, but anything that improves open communication between builders and their clients, and encourages clients to be more aware of how a build works, has to be good for the industry.

Firm: Brendon Lindsey
Principals: Building Works
Location:  Whangarei
Staff: 7 (1 apprentice)

We’ve been meeting most of the new requirements in our own way since I founded the company in 2009, but we still need to make a few changes to ensure we’re in line with the new measures.

We’ve always used a standard written contract but, given the increased level of detail, I think we may need to further customise our contracts for each job, especially since we do mostly renovations. I’m meeting with a local construction lawyer to make sure we’re compliant.

Regarding the new disclosure prerequisite, we’ve been providing that kind of detail as requested – some clients want to see everything in detail and others are only concerned with insurance, or a warranty, or rates. But going forward, it looks like everyone will get everything.

I think making a maintenance schedule mandatory is a great idea; that’s something we’re already doing on a regular basis. Working in renovations, it’s apparent what damage can occur when homeowners neglect the maintenance side of things, and it’s amazing how many of them are completely unaware they need to do anything to preserve their completed homes.

I’m also going to make sure I take the time to explain the changes to the guys on my team. I think it’s important that they’re aware of the industry changes – both to emphasise the liability on our part and for their own professional development.

Firm: Henderson Building
Principal: Shane Bray
Location: Timaru
Staff: 13 

We’re a fairly large company and already use the Registered Master Builders’ contract, which is compliant with the new rules; so that part is easy enough. Also, because we mostly work on architectural builds, we’ve always had to provide most of the new disclosure information.

I feel pretty bad for some of the smaller guys, who were waiting for the details to come out; they go away for Christmas and bam, by the time they get back, they’re in at the deep end!

That’s not to say we won’t need to make any changes ourselves. Living in a small town like Timaru, everyone knows your company and your reputation, so providing disclosure information was never an issue when working on smaller residential builds and renovations. Going forward, we’ll need to change that, even though the owners might not care.

 

Now have your say…

Variations appear to be a one of the main causes for disputes between builders and homeowners. How do you manage variations to ensure this doesn’t happen?

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