Business, contracts and customer management
Business, contracts and customer management
This domain tests quoting, contracting, payment and customer handling. Expect the Consumer Guarantees Act, Fair Trading Act, Building Act implied warranties, Construction Contracts Act 2002, variations and dispute avoidance.
Core rules
- A quote is an offer to do the work for a price; an estimate is an indication, not a fixed price. State inclusions, exclusions, assumptions, GST and validity.
- Put variations in writing before work: describe the change, price, time effect and any effect on other work. Verbal variations are hard to prove.
- The Construction Contracts Act 2002 sets payment claim and payment schedule rules; use them. If retentions are withheld, follow the retention trust requirements where they apply.
- Consumer contracts carry guarantees that work is done with reasonable care and skill and materials are fit for purpose; contracting out is limited.
- Keep records: quotes, contracts, variations, site instructions, test results, invoices and correspondence.
Worked example
A client asks for an extra outdoor tap after the quote is accepted. Treat it as a variation: confirm the tap type, location, isolation and backflow protection, price it, and get written acceptance before installing. Update the programme and invoice separately. Do not bury the cost in the next progress claim without agreement.
Traps
Ambiguous quotes, no deposit or payment terms, oral variations, ignoring payment schedules, and promising a completion date without checking material lead times.