What kind of contract will I be asked to sign?
Group home builders use one of four: NZS 3902 (the standard residential building contract), a Master Build–branded variant, a Certified Builders–branded variant, or their own bespoke document. The first three are well-understood. The fourth is a flag to take to a lawyer.
Should I sign a fixed-price or a cost-plus contract?
Fixed price, for a first home in a group-home setting. Fixed price means the contract sum is the contract sum, save for variations and PC sums. Cost-plus means you pay actual costs plus a margin — usually higher trust required, usually higher cost in practice.
What is a PC sum, and who pays if it isn't enough?
A provisional or PC sum is a line item the builder has costed as a placeholder — tiles, light fittings, kitchen appliances, sometimes flooring. The amount is in the contract; the actual cost is not. If the PC sum is $8,000 for tiles and you spec tiles costing $14,000, you pay the difference.
Make sure every PC sum is realistic for the spec you actually want.
How should variations be handled?
In writing, before the work starts. A variation is any change you, the council or the engineer ask for after signing, and each one should be priced and signed off before it proceeds. If your builder is doing variations on a handshake, document them yourself in writing the same day.
When do progress payments fall due?
At defined milestones, which most contracts set as deposit, foundation, roof on, lock-up and practical completion. Match that payment schedule against the build sequence, and don't pay for stages that haven't started. Five milestones is the common shape; your contract may name more or fewer.
What happens if the build runs late?
That depends on the liquidated damages clause, and it is worth reading before you sign rather than after. It sets who pays whom, and how much, if the build runs past the agreed completion date. Many group-home contracts are one-sided here: the penalty on the builder may be capped low, or absent.
Is it worth paying a lawyer to read the contract?
Yes. A residential build lawyer will read the contract for an hour or two of their time and flag the things that matter — the bespoke clauses, the PC sums, the variation process and the late-completion penalty. The cost is small relative to the build cost. Spend it.