These are the standard terms Sky High Construction Limited uses for client building agreements. Every project also has its own signed Schedule covering price, dates and scope — this is the general contract wording that sits alongside it.
1. BACKGROUND
A. The Contractor carries on business as a construction contractor and provides construction, building, renovation, repair, maintenance, project management, subcontracting, labour, and related construction services.
B. The Client wishes to engage the Contractor to perform the Works described in this Agreement, any accepted quotation, scope of works, plans, specifications, schedules, written instructions, and approved variations.
C. The Parties wish to record the terms and conditions on which the Contractor will perform the Works.
3. DEFINITIONS AND INTERPRETATION
In this Agreement, unless the context requires otherwise: Agreement means this document, all schedules, quotations, scopes of work, plans, drawings, specifications, accepted variations, payment terms, and written attachments forming part of the agreement between the Parties.
Client means the person, company, trust, partnership, or entity engaging the Contractor.
Contract Price means the amount payable by the Client to the Contractor for the Works, whether fixed price, estimate, charge-up, hourly rate, cost-plus, or otherwise agreed.
Contractor means Sky High Construction Limited.
Practical Completion means the stage when the Works are substantially complete and reasonably capable of being used for their intended purpose, notwithstanding minor defects, omissions, touch-ups, finishing items, or matters that do not prevent reasonable use.
Site means the property, premises, building, land, or location where the Works are to be performed.
Variation means any change, addition, deletion, substitution, acceleration, delay, change in methodology, change in materials, change in scope, or other alteration to the Works, Contract Price, or completion timeframe.
Works means all services, labour, construction work, building work, repairs, maintenance, materials, equipment, subcontracted works, site attendance, project administration, and related services to be provided by the Contractor.
4. ENGAGEMENT AND CONTRACTOR STATUS
4.1 The Client engages the Contractor to perform the Works, and the Contractor accepts the engagement, subject to the terms of this Agreement.
4.2 The Contractor is engaged as an independent contractor and not as an employee, agent, partner, fiduciary, or joint venture partner of the Client.
4.3 Nothing in this Agreement creates an employment relationship, partnership, fiduciary relationship, agency relationship, or joint venture between the Parties.
4.4 The Contractor may engage employees, agents, subcontractors, consultants, suppliers, or other third parties to assist with the performance of the Works.
4.5 The Contractor remains responsible for the proper management of its employees and subcontractors, subject to the Client complying with its obligations under this Agreement.
5. SCOPE OF WORKS
5.1 The Contractor shall perform the Works described in Schedule 1 and/or in the accepted quotation, plans, specifications, drawings, written scope of works, or approved variations.
5.2 The Client acknowledges that any completion date is an estimate only unless expressly agreed in writing as a fixed completion date.
5.3 The Contractor shall not be liable for delay caused by weather, site access issues, supply delays, council or consent delays, subcontractor delays, Client delay, variations, hidden conditions, force majeure events, or other matters outside the Contractor’s reasonable control.
5.4 Any work not expressly included in the accepted quotation or written scope is excluded unless added by written Variation.
6. CONTRACT DOCUMENTS AND PRIORITY
6.1 The contract documents comprise this Agreement, the accepted quotation or estimate, the scope of works, plans, drawings, specifications, approved variations, payment schedule, and special conditions.
6.2 If there is any inconsistency between the contract documents, the following order of priority applies: (a) written variations accepted by both Parties; (b) special conditions; (c) this Agreement; (d) accepted quotation; (e) scope of works; and (f) plans, drawings, and specifications.
6.3 The Client confirms that it has read and understood the contract documents before signing this Agreement.
7. CONTRACT PRICE
7.1 The Contract Price is recorded in Schedule 2 or in the accepted quotation.
7.2 Unless expressly stated otherwise, all prices are exclusive of GST.
7.3 Where the price is an estimate, the Client acknowledges that the final cost may be higher or lower depending on actual labour, materials, subcontractor costs, site conditions, supply costs, variations, and project requirements.
7.4 Where the Works are undertaken on a charge-up, hourly, cost-plus, or similar basis, the Client must pay the Contractor for all labour, materials, subcontractors, plant, equipment, travel, administration, margin, and other costs reasonably incurred in performing the Works.
8. DEPOSIT
8.1 The Client shall pay the deposit recorded in Schedule 2 before the Contractor is required to commence the Works.
8.2 The Contractor is not required to order materials, allocate labour, book subcontractors, or commence the Works until the deposit has been paid in cleared funds.
8.3 The deposit may be applied toward materials, booking costs, administration, project preparation, labour allocation, and other costs incurred by the Contractor.
9. INVOICING, PAYMENT CLAIMS, AND PAYMENT SCHEDULES
9.1 The Contractor may invoice the Client on completion, by progress claim, weekly, fortnightly, monthly, on milestones, upon completion of a variation, or as otherwise stated in the quotation or special conditions.
9.2 Unless otherwise agreed in writing, all invoices are payable within 7 days from the date of invoice.
9.3 Where applicable, the Contractor may issue payment claims under the Construction Contracts Act 2002. The Act provides a statutory process for payment claims, payment schedules, adjudication, and enforcement of payment obligations.
9.4 If the Client disputes any invoice or payment claim, the Client must notify the Contractor in writing before the payment due date and specify the amount disputed, the reasons for dispute, the amount accepted as payable, and any supporting information.
9.5 The Client must pay the undisputed portion of any invoice or payment claim by the due date.
9.6 Failure to provide a valid payment schedule within the applicable timeframe may result in the claimed amount becoming due and payable under the Construction Contracts Act 2002, where that Act applies.
10. LATE PAYMENT, INTEREST, AND RECOVERY COSTS
10.1 If the Client fails to pay any amount by the due date, the Contractor may, without prejudice to any other rights, suspend the Works, decline to perform further work, withhold documents or completion materials where legally permitted, charge default interest, recover debt collection costs, recover legal costs on a solicitor-client basis, and/or terminate this Agreement.
10.2 Default interest may be charged at the rate recorded in Schedule 2, calculated daily from the due date until payment in full.
10.3 The Client acknowledges that late payment may delay the Works and increase the Contract Price.
11. VARIATIONS
11.1 The Client may request a Variation to the Works.
11.2 The Contractor may also require a Variation due to hidden or unforeseen conditions, inaccurate Client information, council or compliance requirements, material shortages or price changes, safety requirements, Client-requested changes, delay caused by the Client or third parties, defects in existing structures, or additional work outside the original scope.
11.3 Variations should be recorded in writing wherever practicable, including by email, text message, signed variation form, revised quotation, or written acceptance.
11.4 If urgent or necessary work is required for safety, compliance, protection of the Site, or prevention of damage, the Contractor may carry out that work and charge the Client reasonably for it.
11.5 The Client must pay for all approved, necessary, or reasonably incurred Variations.
12. CLIENT OBLIGATIONS
12.1 The Client must provide safe and timely access to the Site, ensure the Site is ready, provide accurate information, disclose known hazards and defects, obtain required consents and approvals unless otherwise agreed, provide utilities and facilities where reasonably required, keep unauthorised persons away from the work area, avoid interference with the Works, promptly provide instructions, pay invoices on time, and comply with health and safety directions.
12.2 The Client warrants that it has legal authority to authorise the Works at the Site.
12.3 The Client is responsible for all loss, cost, delay, or additional work arising from any breach of the Client’s obligations.
13. CONSENTS, PERMITS, AND APPROVALS
13.1 Unless expressly agreed otherwise in writing, the Client is responsible for obtaining and paying for all building consents, resource consents, engineering reports, council inspections, permissions, approvals, certificates, body corporate approvals, landlord approvals, and neighbour approvals required for the Works.
13.2 If the Contractor agrees to assist with consents or approvals, the Client remains responsible for all council fees, consultant fees, engineering fees, inspection costs, and related charges.
13.3 The Contractor is not liable for delay, additional cost, refusal, condition, or requirement imposed by any council, engineer, inspector, certifier, body corporate, landlord, neighbour, or authority.
14. HEALTH AND SAFETY
14.1 The Contractor will take reasonably practicable steps to perform the Works safely and in accordance with applicable health and safety laws.
14.2 The Client must cooperate with the Contractor on health and safety matters and must not do anything that creates or increases a risk to health and safety.
14.3 The Client must notify the Contractor of known hazards, including asbestos, electrical hazards, unstable structures, underground services, drainage or flooding issues, contaminated materials, animals, restricted access, hazardous substances, or any unsafe condition.
14.4 The Contractor may suspend the Works if, in its reasonable opinion, the Site is unsafe or the Client fails to comply with health and safety requirements.
14.5 Where the Client, Contractor, subcontractors, other contractors, or other businesses have overlapping health and safety duties, the Parties must consult, cooperate, and coordinate so far as reasonably practicable.
15. MATERIALS, TITLE, AND RISK
15.1 All materials supplied by the Contractor remain the property of the Contractor until paid for in full.
15.2 Risk in materials passes to the Client once the materials are delivered to the Site or incorporated into the Works.
15.3 The Client must take reasonable care to protect all materials delivered to the Site.
15.4 The Contractor may remove unpaid materials from the Site where legally permitted.
15.5 The Client must not sell, remove, alter, damage, or dispose of materials supplied by the Contractor before payment has been made in full.
16. CLIENT-SUPPLIED MATERIALS
16.1 If the Client supplies any materials, fixtures, fittings, appliances, products, plans, designs, or specifications, the Client warrants that they are suitable, compliant, available on time, free from defect, and compatible with the Works.
16.2 The Contractor is not liable for defects, delays, failures, costs, or loss arising from Client-supplied materials unless caused by the Contractor’s negligence.
16.3 Additional labour or cost arising from defective, unsuitable, delayed, or incomplete Client-supplied materials is payable by the Client as a Variation.
17. EXISTING STRUCTURES AND HIDDEN CONDITIONS
17.1 The Contractor is not responsible for the condition of existing structures, foundations, framing, services, drainage, cladding, roofing, waterproofing, or other existing parts of the Site unless expressly included in the scope of Works.
17.2 If hidden defects or unforeseen conditions are discovered, including rot, mould, water damage, asbestos, defective wiring, structural weakness, drainage issues, or non-compliant previous work, the Contractor may suspend the affected work, notify the Client, recommend investigation, obtain specialist advice, issue a Variation, and extend the completion date.
17.3 The Client is responsible for all costs arising from hidden or unforeseen site conditions, except to the extent caused by the Contractor’s negligence.
18. DELAYS AND EXTENSIONS OF TIME
18.1 The Contractor is entitled to a reasonable extension of time where delay is caused by weather, shortage or delay of materials, supplier or subcontractor delay, illness or staff shortage, Client delay, late payment, variations, council or inspection delays, unsafe conditions, hidden defects, delays by other contractors, force majeure events, or any event outside the Contractor’s reasonable control.
18.2 The Contractor is not liable for liquidated damages, loss of rent, loss of income, accommodation costs, inconvenience, or consequential loss arising from delay unless expressly agreed in writing.
19. PRACTICAL COMPLETION AND HANDOVER
19.1 Practical Completion occurs when the Works are substantially complete and reasonably capable of being used for their intended purpose.
19.2 Minor defects, omissions, touch-ups, finishing items, or incomplete items that do not prevent reasonable use of the Works do not prevent Practical Completion.
19.3 Upon Practical Completion, the Contractor may issue a final invoice and arrange handover, subject to payment of all amounts due.
20. DEFECTS LIABILITY AND REMEDIAL WORK
20.1 The Client must inspect the Works promptly after Practical Completion.
20.2 The Client must notify the Contractor in writing of any alleged defect within 7 days of becoming aware of it.
20.3 The Contractor must be given a reasonable opportunity to inspect any alleged defect and, where appropriate, remedy it.
20.4 The Client must not engage another contractor to remedy alleged defects without first giving the Contractor a reasonable opportunity to inspect and remedy the issue, except in an emergency.
20.5 The Contractor is not liable for defects, damage, or deterioration caused by misuse, lack of maintenance, normal wear and tear, movement, settlement, moisture, weather or environmental conditions, work by others, Client-supplied materials, Client design or specification, existing defects, hidden conditions, or failure to follow care or maintenance instructions.
21. RESIDENTIAL BUILDING WORK AND STATUTORY WARRANTIES
21.1 If the Works involve residential building work, the Client may have rights under the Building Act 2004, including implied warranties for building work in relation to household units.
21.2 Nothing in this Agreement limits, excludes, or modifies any statutory right, guarantee, warranty, or remedy that cannot lawfully be excluded.
21.3 Where legally required, the Contractor will provide mandatory disclosure information, checklists, written contract information, or other documentation applicable to residential building work.
22. WARRANTIES AND EXCLUSIONS
22.1 The Contractor warrants that it will perform the Works with reasonable care and skill.
22.2 To the maximum extent permitted by law, all warranties, conditions, or guarantees not expressly stated in this Agreement are excluded.
22.3 The Contractor does not warrant pre-existing structures, designs supplied by the Client, Client-supplied materials, work performed by others, manufacturer defects, exact colour or texture matching, or outcomes affected by weather, ground movement, moisture, poor maintenance, or existing defects.
22.4 Manufacturer warranties apply according to the terms provided by the manufacturer or supplier.
23. INSURANCE
23.1 The Contractor will maintain insurance that it considers reasonably appropriate for its business operations.
23.2 The Client is responsible for ensuring that the Site and property are adequately insured before the Works commence.
23.3 The Client should notify its insurer before commencing any construction, renovation, alteration, repair, or building work.
23.4 The Contractor is not responsible for any loss that would have been covered by appropriate insurance that the Client failed to obtain.
24. LIMITATION OF LIABILITY
24.1 To the maximum extent permitted by law, the Contractor is not liable for indirect loss, consequential loss, loss of profit, loss of rent, loss of business, loss of opportunity, loss of use, emotional distress, inconvenience, accommodation costs, or delay-related loss.
24.2 To the maximum extent permitted by law, the Contractor’s total aggregate liability arising out of or in connection with this Agreement is limited to the amount actually paid by the Client to the Contractor for the specific Works giving rise to the claim.
24.3 Nothing in this Agreement limits liability that cannot legally be limited, including liability for fraud or wilful misconduct.
25. INDEMNITY
25.1 The Client indemnifies the Contractor against all loss, cost, claim, damage, liability, expense, or proceeding arising from inaccurate information supplied by the Client, unsafe site conditions not disclosed to the Contractor, Client-supplied materials, instructions given by the Client, interference with the Works, breach of this Agreement by the Client, failure to obtain required consents or approvals, or acts or omissions of the Client, tenants, visitors, other contractors, or third parties under the Client’s control.
26. SUSPENSION OF WORKS
26.1 The Contractor may suspend the Works immediately if any invoice is overdue, the Site is unsafe, access is not provided, the Client fails to provide instructions, required consents or approvals are not in place, the Client interferes with the Works, a dispute materially affects the Works, or the Contractor reasonably considers suspension necessary.
26.2 Any suspension entitles the Contractor to an extension of time and payment of all additional costs caused by the suspension.
27. TERMINATION
27.1 Either Party may terminate this Agreement by written notice if the other Party commits a material breach and fails to remedy that breach within 5 working days after receiving written notice.
27.2 The Contractor may terminate this Agreement immediately if the Client fails to pay an overdue invoice, becomes insolvent or bankrupt, refuses access, creates unsafe conditions, gives unlawful or unreasonable instructions, the working relationship has irretrievably broken down, or the Client repeatedly breaches this Agreement.
27.3 Upon termination, the Client must immediately pay the Contractor for all Works completed, materials ordered or purchased, subcontractor costs, supplier costs, demobilisation costs, administration and project preparation costs, and reasonable loss or cost arising from termination.
28. CANCELLATION BY CLIENT
28.1 If the Client cancels the Works after accepting a quotation or signing this Agreement, the Client must pay all costs incurred by the Contractor up to the date of cancellation.
28.2 These costs may include labour, materials, subcontractor charges, supplier cancellation fees, administration, site visits, quoting and project preparation time, and loss arising from cancelled bookings or allocated resources.
28.3 Any deposit may be applied toward the costs listed above.
29. DISPUTE RESOLUTION
29.1 If a dispute arises, the Parties must first attempt to resolve the dispute in good faith.
29.2 A Party raising a dispute must provide written notice setting out the nature of the dispute, relevant facts, outcome sought, and supporting documents.
29.3 If the dispute is not resolved by negotiation, either Party may refer the dispute to mediation, adjudication, the Disputes Tribunal, the District Court, or any other lawful dispute resolution process.
29.4 Where the Construction Contracts Act 2002 applies, either Party may use the payment and adjudication processes available under that Act.
30. CONFIDENTIALITY AND PRIVACY
30.1 Each Party must keep confidential all commercially sensitive, financial, technical, operational, and personal information obtained from the other Party.
30.2 The Contractor may collect, use, store, and disclose the Client’s personal information for providing the Works, invoicing and payment, project administration, health and safety, insurance, legal compliance, debt collection, dispute resolution, and business record-keeping.
30.3 This clause does not prevent disclosure where required by law, court order, debt recovery, professional advice, insurance, compliance, or enforcement of this Agreement.
31. PHOTOGRAPHS, VIDEOS, AND MARKETING
31.1 The Contractor may take photographs and videos of the Site and Works for project records, evidence of work completed, quality control, health and safety, insurance, or dispute purposes.
31.2 The Contractor may use photographs or videos for marketing only with the Client’s consent recorded in Schedule 3.
32. NOTICES
32.1 Any notice under this Agreement must be given in writing and may be delivered personally, by email, or by post to the contact details recorded in this Agreement.
32.2 A notice sent by email is deemed received when sent, provided no bounce-back or delivery failure message is received.
33. FORCE MAJEURE
33.1 The Contractor is not liable for failure or delay caused by events beyond its reasonable control, including natural disaster, extreme weather, fire, flood, pandemic, government restriction, strike or labour shortage, transport disruption, supply chain disruption, war, civil unrest, emergency, power outage, or any other event outside the Contractor’s reasonable control.
33.2 If a force majeure event occurs, the Contractor is entitled to a reasonable extension of time and payment of additional costs reasonably incurred.
34. ASSIGNMENT AND SUBCONTRACTING
34.1 The Client must not assign, transfer, or subcontract its rights or obligations under this Agreement without the Contractor’s prior written consent.
34.2 The Contractor may assign or subcontract any part of the Works, provided it remains responsible for performance of the Works under this Agreement.
35. SEVERABILITY, WAIVER, AND ENTIRE AGREEMENT
35.1 If any clause is invalid, unlawful, or unenforceable, that clause shall be severed to the extent necessary and the remaining clauses shall continue in full force.
35.2 A failure or delay by either Party to enforce any right does not amount to a waiver. A waiver must be in writing to be effective.
35.3 This Agreement contains the entire agreement between the Parties in relation to the Works. The Client confirms it has not relied on any representation, promise, statement, or assurance not expressly recorded in this Agreement.
35.4 Any amendment must be recorded in writing and accepted by both Parties.
36. GOVERNING LAW AND JURISDICTION
36.1 This Agreement is governed by the laws of New Zealand.
36.2 The Parties submit to the non-exclusive jurisdiction of the courts and tribunals of New Zealand.