THE BENEFITS OF BUILDSAFE FOR HOMEOWNERS
Why should you use BuildSafe? It's simple, because BuildSafe is a fair, independent and neutral third party with no financial interest in, or liability for, the underlying construction contract, we can:
- Protect you from losing your contract deposit. In many cases the contract deposit amounts to tens of thousands of dollars which you would otherwise be required to pay to a Contractor in advance of there being any value of building work in place. In most cases the contractor is a complete stranger and would bank the deposit into an ordinary trading account where it is vulnerable to misappropriation and loss.
- Protect you from loss as a result of damage caused by a Contractor or by an accident or natural disaster during the course of the contract works. Under the BuildSafe Security of Payment Scheme, there must be Contract Works and Public Liability insurance in place for the building project in order for the Parties to be eligible to participate in the Scheme. This can be easily arranged through our BuildSure Scheme.
- Ensure your 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. 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 New Zealand’s leading Construction Lawyers 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 motivation for your contractor to complete your project on time and to the requisite standard rather than starting a new project where the ‘pickings are generally easier’ because, as the job progresses, the Security Amount becomes in effect, a performance bond or retention that can only be obtained by the Contractor by completing the work properly. The Security Amount is fixed in an amount that is of sufficient value to a Contractor that there is a huge incentive to finish the work properly and promptly in order to be paid.
- Provide you with fair, prompt and cost effective binding statutory dispute resolution procedures in the event of any dispute arising.
- Reduce the difficulty of collecting any monies you are found to be entitled to be paid by a Contractor in an adjudication due to non-performance or defective work because BuildSafe is holding the Security Amount in trust.
- Assist you in the selection of professional, reliable, honest and competent Contractors. If your proposed Contractor(s) is/are unwilling to participate in our simple, fair, no nonsense, commonsense Security of Payment Scheme, that response should set off alarm bells for you and you would be well advised to investigate them further. That is because there is absolutely no downside to the Scheme for honest Contractors – they 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.
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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