THE BENEFITS OF BUILDSAFE FOR CONTRACTORS
Why would a Contractor want to use BuildSafe?
Because BuildSafe is a fair, independent and neutral third party with no financial interest in, or liability for, the underlying construction contract, we can:
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Ensure that there are always certain funds available during the course of the contract works to pay for building and construction work in the event of any default on the part of the Owner by holding a reasonable Security Amount in trust.
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Ensure that there are certain funds available for the final payment claim under the contract by holding a reasonable Security Amount in trust.
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Ensure cashflow for you during the course of the contract works by:
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Providing and requiring adherence to a fair and effective payment regime which replaces any previous agreements as to payment, whether imposed by an Owner, or made by agreement, or otherwise.
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Providing for immediate payments to be made at the commencement of the contract to cover local authority fees, charges and levies and associated costs that cannot be obtained on credit.
- Providing for the entitlement to monthly Progress Payments under the relevant Construction Contract whether or not the Owner is a Residential Occupier.
- Eliminating retentions from progress payments during the course of the contract works for the purpose of ensuring performance and for the purpose of defects liability.
- Upon receipt of the signed Notice & Certificate of Practical Completion and Notice and Certificate of Completion documents we will release the appropriate funds to your bank account within 24 hours - no waiting around for the 20th of the month or chasing unpaid invoices.
- Remove any prospect of contract monies being used for any other purpose by holding the Owner’s deposit safe and secure for the benefit of the parties in a dedicated Trust Account set up for your project only.
- Ensure the building project proceeds under a fair, formal, written building contract that clearly records each party’s rights and obligations under that contract to minimise the chances of a dispute arising because: first, in the event that the parties do not have a formal written building contract, the relevant BuildRight Conditions of Contract will apply by default; and secondly, and in any event, the Payment Regime under the BuildSafe Security of Payment Scheme will replace any previous agreement between the parties as to payment. The BuildRight Conditions of Contract have been prepared collaboratively with two of the country’s leading Construction Law Firms to provide fair and effective conditions of contract for residential building and construction work to regulate and improve the way parties to construction contracts do business with each other, and to protect the interests of all parties to a construction contract.
- Provide you with fair, prompt and cost effective binding statutory dispute resolution procedures if required through our partnership with the Building Disputes Tribunal.
- Reduce the difficulty of collecting any monies you are found to be entitled to be paid by an Owner in an adjudication because BuildSafe is holding the Security Amount in trust.
- Assist you in assessing the financial viability of the building project and the Owner at the outset because if the Owner is unwilling to use BuildSafe, that response should set off alarm bells for you and you would be well advised to investigate the Owner further. That is because there is absolutely no downside to using the BuildSafe Scheme for an honest Owner – the Contract deposit is held safe and as the project nears completion, that amount acts as the equivalent of a performance bond ensuring proper and timely completion.
- Provide you with a marketing edge in relation to securing building projects with Owners because you will be seen to be, and respected as, professional, financially sound, fair and even handed in your dealings, and most importantly, you will not be seen as a financial risk to the proper and timely delivery of the project.
- Provide you with a competitive edge in relation to securing the services and competitive pricing of competent and capable Subcontractors because you will be seen to be, and respected as, professional, financially sound, fair and even handed in your dealings and, not a threat or risk to subcontractors on account of the fact that there is security around their payments under the contract.
About UsAt BuildSafe we are driven to be the most recognised and respected provider of a specialist security of payment service for the building and construction industry in New Zealand. This is because we believe that all home owners and builders who are doing building or renovation work deserve to have access to the very best information and services to protect themselves and to ensure that the building process is a positive experience. Find Out More |
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