On Monday, Chris Penk, Minister of Building and Construction, announced that the Government would be making 10 year guarantees compulsory.
Builtin is excited to announce the launch of a new completion guarantee for residential construction projects. The policy covers up to 10% of the contract value, to a maximum of $100,000. It provides peace of mind to homeowners (and their mortgage lenders) if their...
Recently Chris Penk, the Minister for Building & Construction, announced that the Government is looking to “lift the competence” of building professionals and increase penalties as a way to improve efficiency and reduce the cost of building work. In my view, none of the changes proposed will have a material impact on efficiency or cost.
The protection of retentions has been an issue in the construction industry for years, not just in New Zealand but globally. Amendments to the Construction Contracts Act a few years back put obligations on head contractors to protect those retentions by holding them...
A lot of insurance is tied to contracts, so it’s critical you understand what’s in your contract and comply with the requirements in there. Even if you use a standard contract, things might change and you need to be on top of this, or you might end up in hot water....
A bond is a guarantee from a third party that if a company fails to deliver on its contractual obligations the bond provider (called a guarantor or surety) will pay instead. It reduces the risks for contracting parties, because they know that if something happens they won’t be left in the lurch.
There are always two sides to every story. It’s no different when it comes to payment schedules in a building contract. Getting it right is a balancing act.
While the precise impact of a recession on our construction sector is unknown it will no doubt affect many small businesses as less work is pushed through the pipeline. For savvy business owners there are options to help both reduce risk to their own profitability and give greater confidence to potential customers.
Check out how a guarantee can help reassure clients during these uncertain times. Plus, other ideas to help manage your business risk including short term small business loans and ways to improve your cashflow as the economy takes a hit from coronavirus.
MBIE are currently reviewing aspects of New Zealand’s building system. Part of this review includes how risk is allocated across the various players in the sector. One recommendation would: Require that a guarantee and insurance product is put in place for all...
We often hear from builders who want to make sure they're "covered for everything". Unfortunately, protecting yourself from every possible event is, like life, simply not possible. Like life, insurance is a balance between risk and cost. However, there are some risks...
Financial failure is the most common reason a building company ends up in liquidation. That’s why it’s critically important that builders have a good handle on the key financial indicators of their business. Here are the top 7 numbers you should be familiar with.
