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Queenstown Law

Four Things to Consider When Building in Queenstown

With town continuing to grow and several new subdivisions around, it’s a popular time to build in Queenstown. Unlike larger cities, this small, beautiful town has limited resources and builders, and at a time the building industry is already under strain.


Though we don’t think you should stop planning your dream build, it’s important to be realistic in these times and get clued up about the timescale of projects. Curveballs may be thrown your way, so we think there’s no better way to prepare than having your property lawyer at Queenstown Law at hand. It’s a reassurance for you to proceed correctly, with us here to offer independent advice.


Read on to discover the four best ways to prepare for your build with your property lawyer.


Produce a Rigorous Plan with your Architect

When your architect supplies you with your design, make sure it is what you want. It’s important that they’re using correct, available materials. With the high influx of dwelling consents adding more strain to the council’s workload, there’s already a significant wait for granted consents.


If materials are unavailable, or a design is incorrect and needs amending, you may need to send those plans back to Council to be verified again, adding to wait times.

Also, any changes you decide to make later are going to cost you. They will be treated as variations. Talk to us so you understand how this can affect you.


Be realistic with timing, and pricing.

Now that you have a rigorous plan, it’s time to consider a realistic time frame and pricing plan.

Start with your materials; a large chunk of Queenstown’s properties are standalone buildings, which typically require more materials than townhouses and apartments, meaning potentially longer waits on the materials becoming available.


Queenstown is rural, a difficult location for the supply chain, and subject to disruptions and severe labour shortages. It only takes a couple of bad days of weather for major setbacks.

Consider the variables. Wholesale material prices can change, meaning suppliers are frequently communicating cost increases to their customers, and can't retain existing price lists for long.


Determine your Builder’s Solvency

Now you’re familiar with timing issues, consider that a lot of builders may be hampered, waiting for materials to proceed, or they may not have the staff in place. Or they may have underpriced other jobs and been caught by price increases which they may struggle to pass on.


Typically, with building projects, the builder will be paid by way of progress payments when they reach different stages of the project. However, you need to make sure that they are up to that stage before you pay them. Because if you pay them for work they haven’t done yet, and they become insolvent you are not likely to get your money back.


Just beware that, in this environment, some people are slower to pay. If your builder is waiting to be paid on other projects is he at risk of insolvency? Be careful.

Document everything

Another task to complete with your property lawyer throughout this stage is to record your conversations and key dates. Verbal discussions are going to be next to useless if a dispute emerges later.


The key document is the Building Contract itself. You should definitely get us to check this and discuss it with you because there are usually some surprises in it. Did you know, for example, that there are usually at least six ways in which the price under a Fixed Price Contract can be altered?


Also, understand what insurance cover is in place and what warranties and building guarantees you can get.


Now you’re clued up and more the wiser, the business of building won’t be a stressful one.


With Queenstown Law in your corner, your dream build isn’t far away. Contact russell@queenstownlaw.co.nz or claire@queenstownlaw.co.nz to discuss any questions you have.

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