Build Advice
BUILD ADVICE RESPONSE — Example BA-000033
- Case reference:
- Example BA-000033
- Customer:
- Lucy Parker
- Property:
- 42 Sample Lane, Example Suburb, Auckland, 1010
- Service:
- Progress Claim & Variation Review
- Issue:
- You have requested a review of Progress Claim 04 totalling NZ$31,800.00 incl. GST for your residential renovation at 42 Sample Lane, Auckland. The claim comprises NZ$25,000.00 incl. GST for Stage 04 (roof covering and associated framing works) and NZ$6,800.00 incl. GST for proposed Variation V-03 (stormwater drainage pipe replacement). You are seeking clarity on the contractual scope boundaries, the requirement for written variation sign-off, the necessary supporting documentation, and the completion status of the milestone stage.
- Date issued:
- Demonstration example
Your Question / Issue
You have requested a review of Progress Claim 04 totalling NZ$31,800.00 incl. GST for your residential renovation at 42 Sample Lane, Auckland. The claim comprises NZ$25,000.00 incl. GST for Stage 04 (roof covering and associated framing works) and NZ$6,800.00 incl. GST for proposed Variation V-03 (stormwater drainage pipe replacement). You are seeking clarity on the contractual scope boundaries, the requirement for written variation sign-off, the necessary supporting documentation, and the completion status of the milestone stage.
Information Reviewed
- Customer submitted information
- Progress claim, invoice or variation: Build_Advice_Campaign3_Fictional_Progress_Claim_Documents.pdf
- Other: Campaign3_Clarification_Document_Bundle_FICTIONAL.pdf
- Other: Campaign3_Variation_Evidence_and_Status_FICTIONAL.pdf
- Other: Campaign3_Earlier_Progress_Claims_and_Invoices_FICTIONAL.pdf
- Other: Campaign3_Full_Building_Contract_FICTIONAL.pdf
- Other: Campaign3_Original_Accepted_Quotation_FICTIONAL.pdf
- Additional information supplied after submission
- Customer response to our request for more information
Build Advice — what we found and what it means
Based on the documentation supplied, our assessment covers two distinct items within Progress Claim 04: proposed Variation V-03 for stormwater drainage replacement, and the milestone claim for Stage 04 roof and framing works.
- Stormwater Drainage Replacement (Variation V-03 — NZ$6,800.00 incl. GST)
Under contract EX-2026-014 and accepted quotation Q-014, the base contract sum of NZ$210,000.00 covers connecting new roof-water downpipes to the existing stormwater network, based on the express assumption that downstream pipes are suitable for reuse. The replacement of pre-existing defective underground drainage pipework is excluded from the base scope.
However, under Clause 6 of your contract, the contractor is required to describe the changed work, provide pricing, and obtain your written approval before carrying out any variation. That written sign-off was never obtained. Based on the claim details and site correspondence, it appears the work has already been carried out on site. In proceeding with the work and invoicing for it without prior written approval, the contractor has made an error and has not fulfilled their contractual obligations.
From a practical on-site perspective, underground drainage discoveries can create urgent situations where decisions must be made quickly. An open trench presents an immediate site safety hazard and typically requires backfilling on the same day or the following day depending on weather conditions. While the contractor may point to site safety and weather factors as reasons for acting swiftly, this operational urgency does not eliminate the requirement for proper documentation and communication.
Before Variation V-03 can be signed off or considered for payment, the contractor must substantiate what was in the ground, why it required replacement, and what was actually installed. Specifically, they must provide:
- CCTV footage or diagnostic inspection logs verifying that the original pipe was crushed, deformed, or blocked.
- Clear site photographs showing the damaged pipework in place before it was removed.
- An as-built plan and clear photographs showing the replacement pipe installed in the trench and backfilled.
- If in-ground photographs of the pre-existing defect cannot be produced, a post-work CCTV video and report showing the completed, operational line to establish genuine trust before proceeding.
Furthermore, if the contractor seeks payment for this work without prior written sign-off, they must provide an open-book reconciliation of actual incurred costs rather than theoretical estimates. This requires supplying a transparent breakdown of every hour of labour with descriptions of work done, subcontractor and trade dockets, material receipts, and the specific margin applied.
- Stage 04 Milestone: Roof Covering and Associated Framing Works (NZ$25,000.00 incl. GST)
While you have observed that roof sheets are in place and the majority of framing is visible, simply having roof sheets laid does not make this milestone complete.
In practical building terms, the roof finish, all associated flashings, and detailing must be fully completed before this stage can be signed off. Until the roofing sheets, flashings, and detailing are finished, this does not represent a claimable milestone. Additionally, Claim 04 currently lacks quality assurance sign-offs and Auckland Council inspection pass notices (such as framing or pre-wrap). We do not recommend signing off on this stage payment until the complete roof installation and all flashings are fully finished.
Recommended Next Steps
- Request written confirmation from the contractor clarifying whether the 18 metres of stormwater drainage pipe has physically been excavated and installed, or if the claim is based entirely on estimate ES-03 and supplier quote SQ-18 before work took place.
- Request solid diagnostic and photographic proof of the drainage defect, including CCTV footage or logs showing the crushed or blocked pipe, photographs before removal, and as-built photos of the replacement installation.
- Request that if defect photographs are unavailable, the contractor provide a post-work CCTV inspection video and report of the completed drainage line.
- Request an open-book cost breakdown for Variation V-03, including actual trade dockets, labour hours with task descriptions, material receipts, and the applied margin, rather than provisional estimates.
- Ask the contractor to confirm whether Auckland Council has carried out and passed the required framing or pre-wrap inspection for Stage 04.
- Clarify whether the underground drainage alteration required a building consent amendment or a licensed drainlayer's Producer Statement (PS3) and test record under the New Zealand Building Code.
- Withhold sign-off on the Stage 04 milestone until all roofing sheets, flashings, and detailing are fully completed and council inspection pass notices are provided.
Important Considerations
- Under Contract Clause 6, variations must be described, priced, and approved in writing by the homeowner before work commences; proceeding without written sign-off is a failure to meet contractual obligations.
- Although site safety and weather considerations may require open drainage trenches to be backfilled rapidly, operational urgency does not waive contractual communication and documentation requirements.
- Replacement of pre-existing defective underground drainage is contractually excluded from the base scope, but entitlement to an additional charge depends entirely on proving the defect existed and substantiating actual costs incurred.
- A roofing milestone is not achieved by sheet laying alone; full completion requires all flashings, detailing, and council inspections (such as framing or pre-wrap) to be signed off.
- This review provides practical building advice based on the supplied documents and does not constitute quantity surveying certification or a legal determination regarding payment obligations.
Scope of this advice
This is a practical review of the claim or variation material supplied by the customer. It is not quantity surveying certification and it is not a determination of whether a payment is legally due.