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Lbp handbook - Licensed Building Practitioners
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LBP HANDBOOK
DISCLAIMER This information is published under section 175 of the Building Act 2004. The information is only a guide and, if used, does not relieve any person of the obligation to consider any matter to which that information relates according to the circumstances of the particular case. © Ministry of Business, Innovation and Employment 2018 This document is protected by Crown copyright, unless indicated otherwise. The Ministry of Business, Innovation and Employment administers the copyright in this document. You may use and reproduce this document for your personal use or for the purposes of your business provided you reproduce the document accurately and not in an inappropriate or misleading context.
You may not distribute this document to others or reproduce it for sale or profit.
The Ministry of Business, Innovation and Employment owns or has licences to use all images and trademarks in this document. You must not use or reproduce images and trademarks featured in this document for any purpose (except as part of an accurate reproduction of this document) unless you first obtain the written permission of the Ministry of Business, Innovation and Employment. Publication date: March 2018 ISBN: Print: 978-0-478-19416-6 Web: 978-0-478-19417-3
PAGE 01 LBP HANDBOOK www.lbp.govt.nz As part of your application to become an LBP, you need to demonstrate your knowledge of the regulatory environment that relates to your work in the building and construction industry.
This handbook outlines the information that you need to know to meet this requirement, so please take the time to read and understand the content. It’s important to keep in mind that rules do change from time to time and, as an LBP, it is your responsibility to keep up to date with these changes. You can do this by subscribing to LBP Updates and the Codewords newsletter on the LBP website, and by visiting the Building Performance website for the latest versions of documents and guidance. After you have read this handbook, you should be able to demonstrate your knowledge of: › › the key features of the LBP scheme › › restricted building work › › operating within the scope of your own competence › › skills maintenance › › your roles, responsibilities and rights › › health and safety requirements › › the Building Act 2004 › › the Building Code › › the building and resource consent process › › certificates of design work/records of building work › › the Construction Contracts Act 2002.
During your assessment for the licence class that you are applying for, an assessor will ask you questions based around the information from this handbook.
Please note that the information in this handbook relates to all classes. If you have any queries, please contact: Licensed Building Practitioners www.lbp.govt.nz Phone number: 0800 60 60 50 info@lbp.govt.nz Building Performance www.building.govt.nz Phone number: 0800 242 243 info@building.govt.nz WELCOME TO THE LICENSED BUILDING PRACTITIONER (LBP) SCHEME
PAGE 02 LBP HANDBOOK www.lbp.govt.nz CONTENTS PART 1: THE LICENSED BUILDING PRACTITIONERS SCHEME ___ 5
Key LBP scheme members ___ 5
Minimum standard of licensing ___ 5
Categories of buildings ___ 6
Complaints about LBPs ___ 7
Restricted building work (RBW ___ 8
Building work supervision ___ 9
Supervision Risk Matrix ___ 9
RBW supervision ___ 10
Examples of application of different types of supervision ___ 10
Important RBW forms ___ 11
Working within your competence ___ 11
Skills Maintenance ___ 11
PART 2: BUILDING WORK ROLES AND RESPONSIBILITIES ___ 12
LBP roles and responsibilities ___ 13
Homeowner roles and responsibilities ___ 14
Registered trades’ roles and responsibilities ___ 14
Non-registered trades’ roles and responsibilities ___ 15
Building consent authorities’ roles and responsibilities ___ 15
PART 3: CONTRACTING FOR BUILDING WORK ___ 16
Contracting to clients ___ 17
Set up the project to protect both parties ___ 17
Contracts provide clarity ___ 17
Pricing the job ___ 18
Default clauses ___ 18
At the end of the project ___ 18
Ongoing consumer protection ___ 19
12-month defect period ___ 19
The Construction Contracts Act 2002 .
PAGE 03 LBP HANDBOOK www.lbp.govt.nz PART 4: HEALTH AND SAFETY ___ 21
Health and Safety at Work Act 2015 (HSWA ___ 22
Emergencies ___ 24
PART 5: BUILDING REGULATORY FRAMEWORK ___ 25
The Building Act 2004 ___ 26
The Building Code ___ 27
Relevant Building Code clauses ___ 28
Demonstrating compliance with the Building Code ___ 29
Standards ___ 30
PART 6: BUILDING AND RESOURCE CONSENT PROCESS ___ 31
Applying for a building consent ___ 32
Building without consent where one was required ___ 32
Amending or varying a building consent ___ 32
Consented building work inspections ___ 33
Obtaining a CCC ___ 33
Resource consent ___ 36
SELF-ASSESSMENT QUESTIONS .
PAGE 04 LBP HANDBOOK www.lbp.govt.nz PART ONE THE LBP SCHEME BUILDING CONFIDENCE
PAGE 05 LBP HANDBOOK www.lbp.govt.nz The licensed building practitioners (LBP) scheme was introduced by the Building Act 2004 and began operating in November 2007. The aim of the scheme is to protect consumers, lift LBP competency and make LBPs more accountable for their work. The LBP scheme was created as a part of the wider building and construction regulatory framework to ensure homes and buildings are safe, healthy and durable, and that: › › homes are built right the first time › › consumers have access to the information they need to make informed decisions about the competency of building practitioners.
Some building work and design work is restricted building work (RBW) and must be carried out or supervised by LBPs.
The LBP scheme achieves its purpose by: › › identifying licensed people through the LBP Public Register › › setting minimum standards of competence for licensing › › requiring maintenance of professional skills › › making practitioners accountable to the Building Practitioners Board (the Board) via the complaints function. KEY LBP SCHEME MEMBERS The Building Practitioners Board (the Board) The Board is an independent body that governs the LBP scheme. While the Ministry of Business, Innovation & Employment (MBIE) administers the day-to-day running of the scheme, the Board has several key functions, such as: › › approving the scheme’s ‘Rules’, together with the Minister for Building and Construction (the Minister), that LBPs must follow › › hearing appeals against licensing decisions made by the Registrar for Building Practitioner Licensing (the Registrar) › › dealing with complaints about LBPs and, if necessary, disciplining LBPs › › reporting on these functions to the Minister.
MBIE and the LBP Registrar The LBP scheme is administered by MBIE on a day-to-day basis. MBIE’s Chief Executive also appoints the Registrar, who performs many of the functions related to licensing building practitioners. The Registrar makes decisions about licensing applications and renewals, maintains the Public Register and sets the requirements for the LBP skills maintenance programme. They also support the Board investigations of complaints against LBPs.
MINIMUM STANDARD OF LICENSING The LBP Rules 2007 set out the minimum standards of licensing for building practitioners. They also include the minimum standard of current competence that must be demonstrated through ongoing skills maintenance. These standards are used to assess applicants to determine whether they are entitled to be (or to remain) an LBP. If an LBP does not keep their skills and knowledge up to date through skills maintenance, the Registrar may suspend their licence. Licence classes Licence classes in the LBP scheme are based on specific roles or occupations that are crucial to a building's performance.
You can apply to be licensed in more than one licence but you must be able to demonstrate that you have the minimum standard of competence in each class you apply for.
There are currently seven licence classes. › › Design › › Site › › Carpentry › › External Plastering › › Bricklaying and Blocklaying › › Roofing › › Foundations
PAGE 06 LBP HANDBOOK www.lbp.govt.nz PART ONE The number and nature of the licence classes can change from time to time. LBP Licensing Classes has the most up-to-date information. Areas of practice Many of the licence classes have subsets called ‘areas of practice’. An area of practice is a specific field of practice within a licence class. If the licence class that you are applying for has an area of practice, you will be assessed in that area of practice to determine your competency for that licence class.
You can have more than one licence and/or area of practice, and this means that you will be assessed in multiple areas.
The areas of practice are not a limit on what work you can do, which means that you are not prevented from working outside of that area as long as you stay within your licence class. CATEGORIES OF BUILDINGS There are three categories of buildings that are related to the LBP licence classes and areas of practice. These categories identify different types of building based on risk factors, complexity and intended use. Most simple houses in New Zealand are category 1 or 2 buildings. Some category 2 and 3 buildings are not RBW because they are not totally residential, but they are still covered by licence classes such as Design and Site.
Category 1 buildings are single residential units with a risk matrix score of less than 12 for any external elevation.
Category 2 buildings are single residential units with a risk matrix score of 12 or more for any external elevation, or buildings with multiple residential units that are less than 10 metres in height. This height is measured from the surface of the ground floor level to the surface of the top floor level. › › Category 3 buildings are buildings with multiple residential units with a height of greater than 10 metres, and buildings that contain parts that are not residential. Trade licence classes The LBP licence classes reflect the different trades that have important roles in building projects.
These classes are sometimes referred to as ‘trade’ classes and represent the trades involved in the construction and alteration of a building. Individuals who carry out or supervise RBW in these areas must hold the appropriate trade licence.
Registered or Craftsman Plumbers and Gasfitters can carry out and supervise the fitting and sealing or flashing of pipework through exterior walls, and carry out certain roofing and cladding work in the course of their work. They are licensed for this under their own trade bodies. Design licence class The Design licence is for those who undertake design work for category 1, 2 or 3 buildings. There is one Design licence class, which is divided into three areas of practice based on the three building categories as follows: › › Design 1 LBPs prepare drawings, specifications or other documents for category 1 buildings › › Design 2 LBPs prepare drawings, specifications or other documents and manage the design process for category 1 and 2 buildings
PAGE 07 LBP HANDBOOK www.lbp.govt.nz PART ONE › › Design 3 LBPs prepare drawings, specifications or other documents and manage the design and construction process for category 1, 2 and 3 buildings. Some design work is RBW and must be carried out or supervised by someone with a design licence class. RBW that is design work includes the preparation of any drawing, specification, or other document, according to which: › › the primary structure of a house or a small-tomedium apartment building is proposed to be constructed or altered; or › › any external moisture-management system attached to or forming part of a house or a small-to-medium apartment building is proposed to be constructed or altered.
New Zealand Chartered Professional Engineers or registered architects are automatically treated as Design 3 LBPs. This means they can carry out or supervise design RBW. They are licensed for this under their own trade bodies. Site licence class The Site licence is a little different from other licences because it covers the coordination and oversight of building work rather than the carrying out of the building work itself. There are three Site areas of practice: › › Site 1 LBPs coordinate and oversee the construction of category 1 buildings › › Site 2 LBPs coordinate and oversee the construction of category 1, 2 and 3 buildings › › Site 3 LBPs manage the construction process for category 1, 2 and 3 buildings.
Site LBPs are not licensed to actually carry out building work so they cannot carry out or supervise RBW. This also means Site LBPs cannot issue records of building work for RBW. New Zealand Chartered Professional Engineers are automatically treated as being licensed as Site 3 LBPs. They are licensed for this under their own trade bodies. COMPLAINTS ABOUT LBPS LBPs are accountable to the Board for their work and conduct. Anyone can make a complaint against an LBP to the Board, and the Board must investigate the complaint. The Board can also initiate its own inquiries into a matter. Complaints to the Building Practitioners Board has information on the complaint and investigation process.
An investigation may result in the LBP being disciplined if they: › › have carried out or supervised work negligently or incompetently › › have carried out or supervised work that does not comply with a building consent › › held themselves out to be licensed for work that they are not licensed to do › › have carried out or supervised building work or building inspection work they are not licensed for › › have been convicted of an offence that affects their fitness to do building work › › gave false information to get licensed › › failed to provide a certificate of design work for a building consent application › › failed to provide a record of building work to the council or the property owner › › have misrepresented their competence › › have carried out or supervised work outside their competence › › failed to produce their licence or notify a change in circumstances (eg, their legal name has changed) › › have conducted themselves in a manner that brings, or is likely to bring, the LBP scheme into disrepute.
Section 137 of the Building Act 2004 on the Legislation website has information on grounds for disciplining licensed building practitioners.
PAGE 08 LBP HANDBOOK www.lbp.govt.nz PART ONE Penalties If the Board finds the LBP’s conduct comes within the grounds for discipline, it can: › › cancel their licence › › suspend their licence for up to 12 months › › restrict the type of work that they can do or supervise › › order them to do training › › fine them up to $10,000. As a result of a disciplinary sanction, an LBP can also be ordered to pay some of the costs of the Board inquiry and hearing.
If the Board decides the matter is serious enough, it can publicly announce its decision. Formal complaints on the Building Performance website has further details.
RESTRICTED BUILDING WORK (RBW) RBW is work that is critical to make a home structurally sound and weathertight. RBW is residential design, construction or alteration work that: › › requires a building consent, and › › involves or affects a home’s primary structure, weathertightness, or certain fire safety design. As RBW is only residential work, it does not include commercial or mixed-use building work. In order to be RBW, the building work must require a building consent and this means that exempt building work (work covered by Schedule 1 of the Building Act) is not RBW. Only work that’s covered by one of the licence classes is RBW.
It’s important to remember that RBW can only be carried out or supervised by a suitably licensed person.
Use licensed people for restricted building work on the Building Performance website has further information. THE WORK IS NOT RBW THIS WORK IS RBW Does the work need a building consent? Does the work relate to design of fire safety systems for a small-to-medium-sized apartment building? Does the work relate to external moisture management? Does the work relate to primary structure? Does the work involve design or construction/alteration? Is the building residential? Does the work involve a house (of any height) or an apartment building less than 10 metres high? If an apartment, is it purely residential, eg no shops? YES YES YES YES YES NO YES NO NO NO NO NO NO For example, it is covered by Schedule 1 of the Building Act 2004 For example, the work is demolition of removal work For example, it is an office building, school, prison, hospital, stadium, ancillary building or outbuilding For example, it is an apartment building with more than two-three storeys YES YES NO USE THIS FLOW CHART TO IDENTIFY IF BUILDING WORK IS RBW.
PAGE 09 LBP HANDBOOK www.lbp.govt.nz PART ONE Although you do not need to be on-site the whole time you are supervising work, you must be satisfied that those you are supervising are sufficiently skilled in the aspects of the work because you are responsible for the work’s quality and Building Code compliance (as per the building consent). BUILDING WORK SUPERVISION The Supervison Practice Note is available on the LBP website. When it comes to general building work, supervision means providing control, direction and oversight of the work to an extent that ensures the building work: › › is performed competently › › complies with the building consent.
Building work that is not RBW can be supervised by anyone.
If you are an LBP, you are accountable for all building work you carry out or supervise, even if that work is not RBW. If you are supervising building work, you need to provide enough support to ensure the work is done competently and is carried out according to the building consent. SUPERVISION RISK MATRIX = Direct = General = Remote Types of supervision Skill level of those being supervised Complexity of work being supervised Highly skilled Low skill High Low You may face disciplinary action and fines, and put your licence at risk, if the Board finds the work you supervised to be substandard.
PAGE 10 LBP HANDBOOK www.lbp.govt.nz PART ONE RBW SUPERVISION You must be an LBP in the appropriate class to carry out or supervise unlicensed people who want to carry out RBW. If you are not licensed and you carry out or supervise RBW, then you are committing an offence under the Building Act 2004. The local council could issue an instant fine, or even take the matter to court. MBIE could also prosecute you over the matter. EXAMPLES OF APPLICATION OF DIFFERENT TYPES OF SUPERVISION = LBP carrying out RBW = Direct supervision =
LBP working in their capacity as a supervisor of RBW =
LBP carrying out some RBW and supervising other non-LBPs undertaking RBW GENERAL SUPERVISION REMOTE SUPERVISION CARRYING OUT RBW DIRECT SUPERVISION LBP CARPENTER CARRYING OUT OR SUPERVISING RBW PROJECT 4 New engineered cantilevered deck at the LBP's home residence PROJECT 1 Small kitchen renovation with limited restricted building work comprising some plasterboard bracing PROJECT 2 Complex bespoke residential dwelling. LBP contracted to install a specialist cladding system PROJECT 3 Simple dwelling The Board has released some important decisions about supervision of unlicensed people that outline expectations around the quality of supervision.
Codewords article Revisiting supervision on the Building Performance website has more details. It is important to note that an LBP cannot supervise another LBP in the same class. Because both are accountable to the Board for the work they do, this accountability can’t be passed to a supervisor. This does not mean that two LBPs cannot assist or mentor each other, but they cannot take responsibility for each other’s work. They must also both provide records of work if they both undertake RBW.
PAGE 11 LBP HANDBOOK www.lbp.govt.nz PART ONE IMPORTANT RBW FORMS Certificate of design work (Design) When carrying out RBW that is design work, LBP designers complete the certificate of design work and hand it in with the building consent application.
The certificate identifies what design work has been undertaken by whom, and what the details of that design work are. Record of building work (Construction) The record of building work form must be completed by all LBPs who carry out or supervise RBW. It must be provided to the homeowner and the territorial authority (usually the local council) when the RBW is completed. This means that if you are engaged for part of a wider job, you need to provide a record of building work when your involvement in the RBW is completed, not when the job is completed.
The purpose of a record of work is to ensure that the homeowner and territorial authority have an accurate record of the LBP who carried out or supervised RBW on a particular project. If you can’t complete all the RBW you intended to due to contractual or other reasons, then you must complete a record of building work for the part of the work you completed up until the time your involvement came to an end. The form should detail the work that has been completed, as well as the work that still needs to be done. WORKING WITHIN YOUR COMPETENCE Each licence class covers a range of skills and expertise and most licence classes have distinct areas of practice that reflect groupings of particular skills and expertise.
As an LBP you must work within your competence. Although you may be licensed to do a wide range of work, you should only carry out or supervise that work if you are competent to do so. If you wish to carry out or supervise building work for something that you are licensed to do but don’t necessarily have the skills or expertise (eg a different area of practice) it is important you have appropriate support and mentoring to work competently. If an LBP takes on a job outside their competence and things go wrong, this may result in disciplinary action by the Board. SKILLS MAINTENANCE Skills Maintenance is an important part of being an LBP.
Under the Skills Maintenance Scheme, you need to complete a combination of compulsory and elective activities every two years to demonstrate you have maintained your competency in your area of work. The programme aims to encourage you to do two things: › › get the essential regulatory and technical information you need › › choose elective activities that are relevant to what you do.
New Skills Maintenance Scheme on the LBP website has further details.
PAGE 12 LBP HANDBOOK www.lbp.govt.nz PART ONE PART TWO BUILDING WORK ROLES AND RESPONSIBILITIES BUILDING CONFIDENCE
PAGE 13 LBP HANDBOOK www.lbp.govt.nz PART TWO This section outlines the roles and responsibilities of key parties involved in the design and building process. Even on the simplest building project you will interact with other parties who have their own roles and responsibilities. The success or failure of a project often depends on how well people understand their roles, and how they cooperate with each other to achieve them.
Everyone involved in the design and building process should: › › understand their own roles and responsibilities › › have a good understanding of the roles of their colleagues.
LBP ROLES AND RESPONSIBILITIES As all LBPs are licensed under the same regime, they all have the same obligations when it comes to ensuring that they work within their competence and comply with the requirements of their specific licence class. Their responsibilities can be summarised as follows. An LBP must: › › not breach the grounds for discipline › › provide a certificate of design work or record of building work where required › › comply with other regulations or laws that affect their work.
You will often encounter other LBPs on-site and it is important to understand what they are there to do and how that may impact on your work.
Establishing your legal obligations as an LBP The Building Act and its regulations (including the Building Code) set out the rules for building work. All building work in New Zealand must meet the requirements of the Building Act and the minimum performance requirements of the Building Code, even if that work doesn’t require a building consent. Other than the Building Act and its regulations, the other important laws that may impact your work are the: › › Resource Management Act 1991 › › Construction Contracts Act 2002 › › Health and Safety at Work Act 2015. There are also council bylaws, laws for historic places and fire safety, as well as laws to ensure certain plumbing, gas and electrical work is done by qualified professionals.
You will often be engaged to carry out work according to a contract. When you agree to a contract you are bound by the terms and conditions of that agreement and there may be penalties or implications if you do not follow what has been agreed. If you have a dispute about a contract, you should consider getting some legal advice or assistance.
PAGE 14 LBP HANDBOOK www.lbp.govt.nz PART TWO HOMEOWNER ROLES AND RESPONSIBILITIES In general, the same rules apply to homeowners, whether they’re doing the work themselves (DIY) or contracting someone to do it for them (an agent can act on behalf of the owners).
Building owners’ responsibilities include: › › applying for a building consent for proposed building work, if it's required (including construction, alteration, demolition and site works) › › providing the necessary information with the building consent application to confirm compliance with the Building Code › › notifying the council about: › › who will do any RBW (provide the name(s) of the LBPs who will do or supervise the work) › › any changes to the consented plans as work progresses › › a proposed change of use for the building, even when it doesn’t require a building consent › › an extension of life for a building with a specified life › › subdividing a property with an existing building › › applying to the council for a code compliance certificate (CCC) on completion of work that requires a building consent › › ensuring that the building has a compliance schedule where this is a requirement of the Building Act (for example, if you have a cable car) › › ensuring inspection, maintenance and reporting procedures are carried out where required by any compliance schedule for specified systems › › maintaining the building in a safe and sanitary condition at all times If there are concerns about a building's safety in earthquakes, or other natural hazards exist on site, the owner should get professional engineering advice and act on it.
REGISTERED TRADES’ ROLES AND RESPONSIBILITIES Some building work and other related work is regulated by registration schemes. These schemes require people doing prescribed work to be licensed and to fulfil certain requirements, regardless of any contractual commitments. Electrical workers Prescribed electrical work must be done by an appropriate registered electrical worker, who must comply with all regulations relating to electrical work, and must issue an electrical safety certificate to certify that work. Plumbers, gasfitters and drainlayers Plumbing and drainlaying work also must be done by a registered person, who must comply with the regulations relating to that work.
Gasfitting must be done by a registered gasfitter, who must comply with all regulations relating to gas work, and must issue a gas certificate of compliance to certify that work. Generally, gas and electrical work is not inspected by a building consent authority. The work must be done by a licensed professional, who must issue a signed energy work certificate after completing the work. Energy work certificates are required to get a CCC.
Chartered Professional Engineers and registered architects Registered architects undertake architectural design work and are treated as Design 3 LBPs for the purposes of design RBW. Chartered Professional Engineers (CPEng) deal with complex engineering problems and activities requiring the application of specialist engineering knowledge. CPEng are treated as Design 3 LBPs for the purposes of design RBW. Both CPEng and registered architects must provide a certificate of design work where they have undertaken RBW design work.
CPEng are also treated as being Site 3 LBPs.
PAGE 15 LBP HANDBOOK www.lbp.govt.nz PART TWO NON-REGISTERED TRADES’ ROLES AND RESPONSIBILITIES Some people working on a construction project are not subject to any licensing or registration schemes.
These people are only required to do what their contract specifies. These people must not carry out restricted work (such as RBW, prescribed electrical and sanitary plumbing work) without holding a licence or being appropriately supervised. Some of the trades not currently licensed through the LBP Scheme or other registration schemes include: › › painters › › tilers › › plasterboard stoppers. BUILDING CONSENT AUTHORITIES’ ROLES AND RESPONSIBILITIES All building consent authorities (BCAs) process building consent applications and undertake building inspections. BCAs check that building work meets the requirements of the Building Act and the Building Code.
Functions performed by BCAs include: › › considering building consent applications and deciding whether an application shows how the work will comply with the Building Code › › inspecting building work at key stages during the construction process › › certifying that the work complies with the building consent by issuing the CCC. Territorial authorities are responsible for keeping records about all the properties in their area, to address breaches of the Building Act and to protect people and other buildings.
PAGE 16 LBP HANDBOOK www.lbp.govt.nz PART TWO PART THREE CONTRACTING FOR BUILDING WORK BUILDING CONFIDENCE
PAGE 17 LBP HANDBOOK www.lbp.govt.nz PART THREE CONTRACTING TO CLIENTS This section will guide you through the requirements regarding contracting to clients for residential building work. The Building Act and regulations made under it set out consumer protections, including a standard checklist and a minimum standard for contracts that you need to be aware of. These requirements only apply to residential work where a contractor has a contract with the homeowner (the client).
It does not apply to subcontractors.
A contractor must provide a written contract for a residential project that will cost $30,000 or more (including GST). This is the total cost of the building work – it is not acceptable to submit multiple invoices for just under $30,000. In addition, all residential building work is covered by implied warranties to protect consumers. You cannot contract out of the implied warranties and they apply regardless of the cost of the project. They cover aspects of building work from compliance with the Building Code to good workmanship and timely completion of work.
It’s important that you have a good understanding of the Construction Contracts Act 2002 because it provides rights and obligations around payments for contracted building work.
SET UP THE PROJECT TO PROTECT BOTH PARTIES Before agreeing to building or design work, a contractor must provide potential residential clients who ask for it, or whose project will cost $30,000 or more (including GST), with: › › a disclosure statement including information about skills, qualifications, licensing number and any insurance or guarantees related to the work › › a standard checklist that includes information about the steps of a build and minimum requirements for a contract. A contractor can be fined for not supplying a homeowner with these documents. They can be convicted and fined up to $20,000 if they knowingly: › › provide false or misleading information › › leave information out of the disclosure statement.
Consumer protection – disclosure and checklist on the Building Performance website has more information. CONTRACTS PROVIDE CLARITY Once you have agreed to do building work you should agree on the terms in a contract with the client. Remember, you must provide a written contract for a residential project that will cost $30,000 or more. The contract should include all of the requirements specified in the Building Act regulations and listed in the standard checklist. You should seek legal advice before signing any contract.
A contractor can be fined for not having a written contract if one is required.
While the homeowner is responsible for ensuring the work meets the relevant requirements, the contractor usually has the relevant knowledge and needs to help the homeowner meet their obligations. Information about who will do what should be included in any contract, as it is part of the minimum contract requirements. For example, the contractor might take on the role of obtaining the building consent, even though it is the homeowner’s responsibility.
PAGE 18 LBP HANDBOOK www.lbp.govt.nz PART THREE The terms of the contract might include identifying who is responsible for ensuring: › › council inspections occur as set out in the building consent › › RBW or any other specialised work is carried out by a person with the appropriate qualification (and the homeowner is given relevant documentation) › › any ‘notice to fix’ is acted on and the work re-inspected › › the council is notified about: › › who will do any RBW (provide the name(s) of the LBPs who will do or supervise the work) › › any changes to the consented plans as you progress › › a planned change of use for the building › › an extension of life for a building with a specified life › › a planned subdivision of a property with an existing building › › any alterations, even if they don’t require a building consent › › all council fees are paid › › an application is made for a CCC.
Contractors: Do your homework on the Building Performance website has details about the minimum contract requirements.
PRICING THE JOB When pricing a job, the price should be the total cost of all the building work (including supplies, fixtures, fittings and GST). This is regardless of whether a subcontractor is doing all or part of the work. You can only exclude the cost of the subcontractors’ work if they enter into a separate contract with the client. A written contract protects both parties. DEFAULT CLAUSES You will automatically have to meet default clauses specified in the Building Act if you are working on a residential building project that will cost $30,000 or more (including GST) and you either: › › don’t have a written contract with the homeowner › › don’t include the minimum content required in the contract.
The default clauses won’t override an existing clause but cover many aspects of a building project and all the minimum contract requirements where there are no existing clauses (these are additional to the implied warranties). Examples of the default clauses include: › › the building contractor undertakes to obtain all necessary approvals, including building consents, before commencing the building work › › the building contractor must provide the CCCs to the client before the building contractor submits their final payment claim under the contract.
AT THE END OF THE PROJECT Once you have completed the RBW you are responsible for, you must provide a record of building work to the homeowner and the council.
Once the building work is completed, regardless of the price of the work, you must give clients the following information, documents or both: › › a copy of any current insurance policy you hold for the building work completed under the contract › › a copy of any guarantees or warranties for materials or services used in the building work, including: › › information about how to make a claim › › if the guarantee or warranty is transferable › › if it must be signed and returned to the issuer
PAGE 19 LBP HANDBOOK www.lbp.govt.nz PART THREE › › information about the processes and materials to be used to maintain the building work, if maintenance: › › is required to meet the requirements of the Building Code › › could affect any guarantee or warranty. It’s okay to provide information as you go, but it might be easier to keep track so you can give it all to the client when the project is finished. That way, you also know exactly what you’ve provided. You could be fined if you don’t provide this information.
ONGOING CONSUMER PROTECTION If there is a problem during the build or once it is complete there are several measures in place that affect builders, designers and tradespeople.
If you are the main contractor: › › you are required by law to fix any defective building work that you were notified about within 12 months of the building being completed within a reasonable time. › › you need to ensure clients visiting the site are not harmed by hazards in the workplace you control. › › you will need to organise the repair of anything faulty related to the build. You are also responsible for the work done by your subcontractors, so make sure you keep an eye on the quality of their work › › any defective product must be remedied. It is your responsibility to arrange a replacement of any product you supplied.
It’s a good idea to walk your client through the project after each milestone to show them progress and check the quality of the work. It should be much easier (and more time and cost-effective) to repair any defective work or products as you go.
If you wait until the end of the project, any defective work or products may be hidden by other building elements or you may not have time for repairs before you move to your next project. 12-MONTH DEFECT PERIOD There is an initial defect repair period of 12 months, starting from the date the building work is complete. If your client tells you in writing about any defective work before the 12 months are up, you must put it right within a reasonable timeframe from receiving notification. If you dispute the defect, you need to prove that it is not your fault or your subcontractor’s (or due to the products you’ve used).
Once the 12-month defect period ends Contractors have a responsibility to remedy defective work after the 12-month defect repair period ends, for up to 10 years. This ongoing protection is due to implied warranties in the Building Act. If you are notified about a deficit after the 12-month repair period has lapsed, and you dispute it, it is up to the homeowner to prove there is a defect. Contractors also have responsibilities if there are problems related to: › › payments or disputes – refer to the Construction Contracts Act › › service (including any trade work, design work or inspection services) – refer to the Consumer Guarantees Act › › being misled about products or services – refer to the Fair Trading Act.
Do your homework, the Building Performance website has further information on your rights and responsibilities under the Construction Contracts Act 2002.
PAGE 20 LBP HANDBOOK www.lbp.govt.nz PART THREE THE CONSTRUCTION CONTRACTS ACT 2002 The Construction Contracts Act 2002 (CCA) provides a process for dealing with payments and disputes under a construction contract. It covers both commercial and residential construction contracts. The CCA: › › helps to ensure a fair, balanced and appropriate payment regime › › provides a fast and cost-effective adjudication process for people with disputes › › provides enforcement mechanisms to recover any unmade payments › › protects retention money withheld under commercial construction contracts.
How the CCA applies to your contract The CCA provides you with default payment provisions and bans the use of ‘pay when paid’. The CCA also provides fast-track adjudication of disputes about your contract, along with ways to enforce payment.
Payments Under the CCA you can make payments in two ways: › › as a single payment › › over several instalments (known as progress payments). You should make the payment obligations clear in your contract. If you don’t, the default provisions of the CCA will apply, which provide for monthly progress payments. You can make a payment claim for any amount you believe is due under the contract. You must include a notice (Form 1) with all payment claims you make. The notice outlines the: › › process for responding to the payment claim › › consequences of not responding to or paying a claimed or scheduled amount in full.
Construction Contracts Act 2002 on the Building Performance website has more information on construction contracts.
PAGE 21 LBP HANDBOOK www.lbp.govt.nz PART THREE PART FOUR HEALTH & SAFETY BUILDING CONFIDENCE
PAGE 22 LBP HANDBOOK www.lbp.govt.nz PART FOUR Construction is one of New Zealand’s biggest industries with almost 200,000 workers – but it’s also one of the four sectors with the worst worker injury rates. Worker fatalities are more than double the average for all other sectors. HEALTH AND SAFETY AT WORK ACT 2015 (HSWA) The HSWA provides for a balanced framework to ensure the health and safety of workers and workplaces. 'Business' in this section means PCBU (Person Conducting Business or Undertaking).
Your rights and responsibilities as a worker Rights: 1. Work in a healthy and safe environment Risks are things that might hurt you, or make you sick. The business you work for, or the business that controls where you are working, is responsible for managing its work-related health and safety risks. 2. Get appropriate training before you start work The business you work for must make sure you have been trained to carry out your work in a healthy and safe way. Make sure you understand the risks and how to keep yourself and others healthy and safe at work. 3. Work with safe machinery, vehicles, tools and equipment The business needs to make sure that the tools, equipment, vehicles and machinery you use at work are safe for you to use and in good working condition.
4. Stop or refuse to carry out dangerous work You have the right to stop work, or refuse to carry out work, if you believe that doing the work would expose you, or anyone else, to a serious health or safety risk. If you have stopped work, you need to let your manager know as soon as possible. 5. Access to health and safety information The business you work for must provide you with information about staying healthy and safe at work, in a way that you can understand. 6. Personal Protective Equipment (PPE) In most cases the business you work for must provide you with personal protective equipment (PPE) if it’s needed to keep you safe and healthy, for example, hard hats, ear muffs and safety glasses.
Your business should train you in how to properly use, clean and maintain your PPE. The business you work for cannot charge you for PPE. You can voluntarily provide your own PPE but this must be checked and approved by your business.
7. Speak up You are the eyes and ears of your business. Telling your business about your ideas, experiences or concerns and those of your fellow workers helps keep you and others safe. Your employment or contract can’t be terminated if you report or act on a health and safety concern. It’s against the law for anyone to discriminate or take other negative steps against you because you’ve spoken up about health and safety at work.
PAGE 23 LBP HANDBOOK www.lbp.govt.nz PART FOUR 8. Be given a chance to have a say You must be given reasonable opportunities to express your views and contribute to decision making on health and safety at work.
This includes decisions about: › › your health monitoring › › conditions at your workplace › › information and training for workers. › › health and safety representatives and health and safety committees. You can ask your business for a health and safety representative, or a health and safety committee, to help workers and the business work together to improve health and safety. You can also choose to join a union. You must be provided with: › › toilets and hand-washing facilities › › clean drinking water › › first aid facilities › › a place to have a meal break in reasonable comfort and shelter.
information about what to do in an emergency. Your business is required to ensure you know what to do in an emergency, for example how to escape if there’s a fire or what to do if an earthquake occurs. Responsibilities: 1. Your responsibilities: As a worker you have a responsibility to: › › take reasonable care of your own health and safety › › take reasonable care that what you do or don’t do does not adversely affect the health and safety of other people › › cooperate with any reasonable workplace health and safety policy or procedure that your business has › › comply with any reasonable instructions given by the business you work for.
If you have a health and safety concern you need to: › › tell your manager or your health and safety representative › › ask a workmate or community member to raise the concern on your behalf › › contact your union, who can act on your behalf › › contact WorkSafe on 0800 030 040 › › visit the WorkSafe website (search ‘concern’).
2. Your business’ responsibilities Your business must: › › give its employees reasonable opportunities to participate in the ongoing improvement of health and safety of the PCBU they work for (this can be direct or through representation – a health and safety representative is common) › › provide and maintain a safe work environment that does not pose a risk to health and safety › › provide and maintain adequate facilities for the welfare of employees at work › › ensure that plant machinery and equipment in the place of work is designed, made, set up, and maintained to be safe for employees › › ensure that systems of work do not lead to employees being exposed to hazards in or around their place of work › › develop procedures to deal with emergencies that may occur while employees are at work › › provide information, training, instruction or supervision that is necessary to protect people from risks to health and safety arising from the work carried out › › ensure that the health of workers and the conditions at the workplace are monitored to prevent illness or injury to workers arising from the work carried out › › maintain worker accommodation it owns, manages or controls (that has been provided because other accommodation is not reasonably available) so workers are not exposed to health and safety risks arising from the accommodation.
PAGE 24 LBP HANDBOOK www.lbp.govt.nz PART FOUR EMERGENCIES In an emergency call 111 for emergency services. Notifying Worksafe Businesses must notify WorkSafe as soon as possible if any of the following ‘notifiable events’ occur: › › the death of a person › › a notifiable injury or illness › › notifiable incident. Call 111 if required. Call the WorkSafe Response Team on 0800 030 040 (available 24 hours). If scene clearance or other immediate assistance from a health and safety inspector is required, request this from WorkSafe.
Do not interfere with an accident scene until authorised by a health and safety inspector.
Exceptions include certain situations, such as when people or property is at risk. Construction on the WorkSafe website has further information.
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