Step Four
Contract signing stage
Once the pricing quotation and concept floor plan have been agreed upon, the next step is to prepare a Building Contract Agreement. The contract documentation will typically include the following:
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Building Contract Agreement
This is the core document that outlines the legally binding agreement between the owner and BUILTsmart Ltd. It includes essential terms and conditions, project scope, timelines, payment schedules, dispute resolution mechanisms, warranties, insurance requirements, variations and changes to the scope of work, termination clauses and any other contractual obligations. -
Full Specification List
A comprehensive list that outlines the specifications and details of all components and features of the construction, including materials, brands, models, and any other relevant information. -
Detailed Floor Plan
A comprehensive floor plan that outlines the layout and dimensions of each room and area in the building. -
External Elevations
Detailed drawings or images that depict the exterior appearance of the building, including the design, materials, and architectural features. -
Electrical Plan
A plan showing the placement and layout of electrical fixtures, outlets, switches, and other electrical components throughout the building. -
Floor Finishes Plan
A plan specifying the flooring materials, and finishes to the various floor areas.
It's important to carefully review and understand the contract documentation before signing it. Here are some considerations relating to funding conditions and drawdown requirements:
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Progress Payments Drawdowns
Some banks may have specific requirements regarding the completion of certain milestones or stages before allowing funds to be released. Ensure that the timelines align between the building contract and approved funding conditions. -
Approved Building Consent
Check whether the bank requires an approved Building Consent prior to the first progress payment drawdown. Building Consent is a permit obtained from the local government authority that confirms the construction plans comply with relevant regulations. The bank may want assurance that the project has the necessary approvals in place before releasing funds. -
Insurance Requirements
Verify whether the bank requires an insurance certificate naming them as an "interested party." Banks often require borrowers to maintain adequate insurance coverage for the project, and they may want to be notified in case of any changes or cancellations to the insurance policy. Consult with the bank to understand their specific insurance requirements and ensure compliance.
These conditions may vary depending on the bank/lender.
To obtain accurate and up-to-date information, it's recommended to consult with your bank or financial advisor who can provide specific details based on your situation.
