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Building Act 2004

Consumer rights and remedies in relation to residential building work - Pre-contract information

362D: Building contractor must provide information before residential building contract entered into

You could also call this:

“The builder must give you important information before you both agree to start building work on your home.”

This law is about what a building contractor must do before they can make an agreement with you to build or fix your home. If the building work costs more than a certain amount, or if you ask for it, the contractor must give you some important information.

Before you and the contractor sign any papers, they need to give you two things: some specific information about the work, and a checklist. These must be in a special format that the law says they should use.

If the contractor doesn’t give you this information, they can get in trouble and might have to pay a fine of up to $2,000.

The contractor must be honest when they give you this information. They can’t lie or leave out important facts on purpose. If they do, they’re breaking the law. A person who does this could be fined up to $50,000, and a company could be fined up to $150,000.

Remember, these rules are there to help you understand what you’re agreeing to before any building work starts on your home.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6371121.

Topics:
Housing and property > Home safety and repairs
Business > Industry rules
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362C: Consumer rights under Fair Trading Act 1986 or Consumer Guarantees Act 1993 not affected by this Part, or

“This part doesn't change your rights as a shopper under other laws that protect you.”

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362E: Purpose of regulations under section 362D, or

“These rules help make sure you know important things about the builder before they start working on your house.”

Part 4A Consumer rights and remedies in relation to residential building work
Pre-contract information

362DBuilding contractor must provide information before residential building contract entered into

  1. This section applies to a residential building contract if—

  2. the price for the building work is not less than the prescribed minimum price (if any); or
    1. the client has requested the prescribed disclosure information (if any) and prescribed checklist (if any).

      1. A building contractor must not enter into a residential building contract to which this section applies unless the building contractor has first provided to the client (or each client if there is more than 1)—

      2. the prescribed disclosure information (if any); and
        1. a prescribed checklist (if any).

          1. The disclosure information and the checklist must each be in the form prescribed by regulations (if any).

          2. A person who contravenes subsection (2)(a) or (b) commits an infringement offence and is liable to a fine not exceeding $2,000.

          3. A person must not, in any communication or document required to be made or given under subsection (2)(a), knowingly make a statement that is false or misleading in a material particular or knowingly make a material omission.

          4. A person who fails to comply with subsection (5)—

          5. commits an offence; and
            1. is liable on conviction,—
              1. in the case of an individual, to a fine not exceeding $50,000:
                1. in the case of a body corporate, to a fine not exceeding $150,000.

                Notes
                • Section 362D: inserted, on , by section 56 of the Building Amendment Act 2013 (2013 No 100).
                • Section 362D(5): amended, on , by section 77(1) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                • Section 362D(5): amended, on , by section 77(2) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).
                • Section 362D(6): replaced, on , by section 77(3) of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).