Insights & Articles

The significance of insurance in the context of purchasing a home cannot be overstated. It is not only a critical component but also a mandatory one when seeking financial assistance from lenders for a home purchase. Lenders need proof of adequate and appropriate insurance coverage before approving a loan drawdown.

The Government is once again looking to impose further statutory controls over how contractors are to handle and protect retention moneys owed to its sub-contractors - this time with civil monetary penalties facing the construction companies and their directors for non-compliance.

The Construction Contracts Amendment Act 2015 is implementing a number of updates to the Construction Contracts Act 2002 ("the CCA"). The amendments are coming into force progressively between 1 December 2015 and 31 March 2017.

Many in the construction industry will be feeling frustrated at the latest lockdown slowing down projects and progress. Fortunately, not everything has to be put on pause. The Construction Contracts Act 2002 ("CCA") provides ways to recover money during lockdown.

The Principal, the Contractor and the Engineer had to navigate through the general and specific conditions of their NZS3910:2013 contracts in regards to variations, extensions of time and payment claims for the Covid-19 lockdown period.

This article serves to inform the procedural and legal methods and issues related to debt recovery.

Parties to construction contracts, especially those contractors (and subcontractors) who are engaged to carry out particular contract works by an agreed due date for completion, may be exposed to penalties or "liquidated damages" if unable to carry on or complete those works during the Covid-19 Alert Level 4 lockdown.

At a press release on 24 March 2020 at 1.00 pm a spokesperson for the Ministry of Business, Innovation and Employment (MBIE) said: "If you are in doubt whether you are an essential service, you're probably not".

Purchasers of commercial property should undertake an exhaustive review of each potential purchase before declaring an agreement unconditional. This review should be undertaken in consultation with your lawyer, accountant, property manager, building inspector, lender, and otherwise as appropriate.