Proposal terms.
Scope, allowances, variations and the next steps.
The terms that sit alongside your renovation proposal.
Read alongside your proposal.
These terms apply to every fixed-price proposal, investment breakdown and design-and-build proposal issued by Add Value Renovations Ltd (NZBN 9429041370285). They apply from the moment you receive the proposal until a building contract is signed. Once the contract is signed, the contract prevails where the two differ.
These terms form part of every proposal that cites them.
What the proposal is
- The price is fixed for the work, quantities and selections allowed for in the proposal: the drawings listed, the scope of works, the specification and the selections named. It is not an estimate. It changes only if you ask for an upgrade or extra work, if we find something that could not be seen before opening up, or if the council, an engineer or another authority requires a change. Each of these is priced as a written variation before the work proceeds.
- The quantity surveyor's take-off and its marked drawings are the record of what is included. If an item is in the take-off, we build it. If it is not, it is not included until a written variation adds it.
- Where the take-off is silent, the current building drawings decide. Any conflict between documents is raised and resolved in writing before the affected work starts.
- A review draft marked "For review with Simon" is not an offer and cannot be accepted.
Validity and prices
- The proposal is valid for 30 days from its date of issue. After that we may re-price it before acceptance.
- All prices are in New Zealand dollars. Line prices and subtotals are shown excluding GST; GST at 15% is added and the total investment is shown including GST.
- We may re-quote if the scope, drawings, selections or site information change before acceptance.
- Where detailed design or a building consent is still to be completed, changes they require are priced as variations.
Allowances
- Prime-cost (PC) sums are supply allowances for items you have not yet chosen, such as tapware, tiles, appliances or a kitchen. They are based on the AVR Standard Selections. They reconcile at actual supply cost plus the 20% margin in clause 6.3. Any difference between the actual supply cost and the allowance is adjusted by that margin: choose above the allowance and the difference plus 20% is added; choose below it and the difference plus 20% is credited.
- Provisional sums are allowances for work that cannot be fully defined before we open up, such as engineering or council fees. They are charged only for the work actually required, at the cost incurred plus the variation margin, and any unspent balance is credited.
- Contingency, where shown, is your money held against unknowns. It is only drawn by a written variation and any unspent balance is credited.
What is not included unless the proposal lists it
- Building consent, design, engineering and council fees, unless included in the take-off or shown as a provisional sum.
- Asbestos survey, removal and clearance.
- Hidden damage found once linings, floors or cladding are opened up, including borer, rot, mould and weathertightness remediation.
- Building wrap, wall insulation, sarking or timber lining board, underfloor insulation and ceiling insulation to the existing dwelling's framing and roof space, unless separately priced.
- Upgrades to existing wiring, plumbing or drainage beyond the scope, including switchboard or mains-pressure upgrades not listed.
- A new hot water cylinder, unless listed.
- Structural or seismic work not shown on the drawings.
- Appliances, whiteware, furniture, blinds and curtains.
- Landscaping, driveways, decks, fencing and other external works.
- Scaffolding, unless listed.
- Furniture removal, storage and temporary accommodation.
- Reinstatement of rooms below or beside the work area if damage is found at strip-out.
- Delays from weather, consent processing or product lead times.
- Contract works insurance, which you arrange through your home insurer.
- Items you supply, and any trade you engage directly.
- Existing fixtures we remove and refit, and items you supply, are fitted as they are. We do not warrant the item itself, and replacing one that proves unusable is a variation.
- Making good, repainting or matching finishes outside the work area. New work beside retained surfaces may not match exactly in colour or texture.
- Any work not described in the proposal.
Hidden conditions and asbestos
- A renovation opens up an existing house. Where we find rot, borer, unsafe wiring, unexpected structure, water damage or suspected asbestos, the affected work pauses.
- We photograph and describe what we found, obtain the designer's or engineer's detail where needed, and price the extra work as a written variation before it proceeds. Unrelated approved work continues.
- Suspected asbestos-containing material is not disturbed until it has been tested and, if needed, removed by a licensed remover. Those costs are a variation.
- Where new work is fixed to existing structure, such as deck framing, floor joists or wall framing, the price assumes that structure is sound. Repair or replacement found necessary is a variation.
Changes, variations and site instructions
- Every change to the agreed scope, design, product or method is recorded and priced in writing and approved by you before the work proceeds. This includes changes you ask for, changes a council or engineer requires, and changes from hidden conditions.
- A request made on site to a builder or tradesperson is not an instruction. Our trades work only to the current approved detail. Please put every change through your AVR project contact so it can be assessed, priced and approved.
- Variations are priced at cost plus a margin of 20%. The signed contract records the same figure in the Part 2 "margin for valuing adjustments" box.
- A variation records any effect on the completion date.
- Work that is removed from the scope is credited at the value in the take-off, less costs already committed.
Selections and decision dates
- The products in the AVR Standard Selections are in your price. Upgrades are written variations.
- Selections are reviewed at the pre-start walkthrough and must be confirmed at least four weeks before the relevant work is scheduled to begin. The programme sets a decision date for each item. Internal doors, including size, height, swing, profile, hardware and jamb type, must be confirmed at least four weeks before framing and lining. If you miss a selection decision date, the standard item in the AVR Standard Selections will be supplied.
- Changes after a decision date are fast variations and may move the completion date.
- Appliances you supply must be confirmed by model number before the joinery drawings are signed off, and delivered by the date in the programme. A late or changed appliance is a variation.
Contract, payment and guarantee
- Work of $30,000 or more including GST is carried out under the Registered Master Builders Alterations and Additions contract RBC1-2018. Smaller work uses the Master Builders Minor Works contract MW-2019. Both are available on the Client Area page with the statutory Checklist and Disclosure Information.
- A contract deposit is payable on signing and is shown in the contract's progress payment schedule.
- Progress claims follow the written schedule in the contract. Each undisputed invoice is payable within 3 working days of the invoice date.
- Where a claim is overdue, the next stage may be held until it is paid. The contract sets the default interest rate.
- Every contract of $30,000 or more is offered the Master Build 10-Year Guarantee. The application form is the page after the contract form and is signed with the contract. The guarantee's own terms and conditions apply.
- The defects period is 12 months from practical completion.
- Add Value Renovations holds public liability insurance of $2,000,000 and does not hold professional indemnity insurance. Contract works insurance for work in your home is arranged by you through your home insurer, and we ask for written confirmation before work starts.
Programme
- The programme is confirmed at contract signing and is subject to consent, product lead times, weather and your decision dates.
- A change to the start date, completion date or contract price is recorded on the Master Builders Notice of Change to Contract Details.
Planning, design and QS report fees
Where you have paid a Pre-Construction Planning Fee or a QS Report Fee, that fee pays for the planning work and is not credited against the building price. The fee proposal's own terms apply to that engagement.
Order of precedence
Signed building contract, then the drawings, then the specification, then the QS take-off and proposal, then these terms. These terms are archived with each proposal by version number, and a later version does not change a proposal already issued.
Ownership and use
The take-off, drawings and cost plan are prepared for the named customer and property only. Add Value Renovations keeps ownership and copyright. They must not be given to another builder to price from.
Where the proposal is priced from drawings or a concept design you supply, you confirm you are entitled to have us price and build from them. Dimensions are subject to our own site measure.
Living in your home during the work
Where you live in the home during the work, we protect floors and surfaces outside the work area and keep access safe. Dust, noise and short interruptions to power and water are part of a renovation; we give notice of planned shut-offs.
Let’s make it clear.
Simon Liu
Call 09 393 5658This page is general contract information for AVR proposals and is not legal advice. MBIE recommends independent legal advice before signing a building contract.
