THE BENEFITS OF BUILDSAFE FOR SUBCONTRACTORS
Because BuildSafe is a fair, independent, and neutral third party with no financial interest in, or liability for, the underlying construction contract, we can:
- Ensure that there are certain funds available during the course of the contract works to pay for your Subcontract works and services in the event of any default on the part of the Owner/Principal or Head Contractor by holding a reasonable Security Amount in trust.
- Ensure that there are certain funds available for the purpose of the final payment claim under the Subcontract by holding a reasonable Security Amount in trust.
- Ensure cashflow for you during the course of the contract works by:
- Providing and requiring adherence to a fair and effective payment regime which replaces any previous agreements as to payment, whether imposed by an Owner/Principal or Head Contractor, made by agreement, or otherwise.
- 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 contract whether or not the Principal 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 authorisation from the Owner/Principal we will release the appropriate amount of the funds held to your bank account within 24 hours - so no waiting until the 20th of the following month or chasing overdue accounts.
- Remove any prospect of contract monies being used for any other purpose by the Main Contractor by holding the Owner’s contract deposit safe and secure for the benefit of all parties.
- Protect you from loss as a result of an accident or natural disaster caused by, or contributed to by you, or your agents, or your servants during the course of the contract works through our BuildSure Insurance Scheme. All construction contracts under the BuildSafe Security of Payment Scheme must have adequate insurance in place in order for the Parties to be eligible to participate in the Scheme.
- Ensure the Subcontract proceeds under a fair, formal, written agreement that clearly records each party’s rights and obligations under that contract to minimise the chances of a dispute arising. 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 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 contract 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.
- Assist you with assessing the financial viability of a Contractor or an Owner/Principal because if the Contractor or Owner/Principal is unwilling or unable to use the BuildSafe Security of Payment Scheme, that response should set off alarm bells for you and you would be well advised to investigate the Owner/Principal or Contractor further. That is because there is absolutely no downside to the Scheme for an honest Contractor or Owner/Principal – 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 for the Owner/Principal and Contractors are entitled to prompt and regular progress payments without deduction on account of the Security Amount or retentions and their final payment claim under the contract is secured up to the value of the Security Amount.
- Provide you with a marketing edge in relation to securing building projects with Owners because you will be seen to be, and appreciated as, professional, financially sound, fair and even handed in your dealings and most importantly, not a risk to the project.
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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