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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22887
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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What is a labour Only Contract a house,and secondly if it

Customer Question

What is a labour Only Contract for building a house,and secondly if it had specific clause like getting the builder to order materials and work out quantities of materials,something which i believe a contractor would normally do.does this alter the nature of the contract./
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

A labour only contract is, as you say, simply provision of labour. Any issues with relation to ordering of materials and other subcontractors, and issues such as measuring quantities, would be extra to the labour only contract. The proper course would be to either decline to take on these tasks, or issue a formal variation to the contract which set out the additional requirements, together with the estimates where appropriate or the charge out rate for doing the services. If you just talk on these extra jobs at the request of the owner, then you are entitled to get paid but it can get difficult because you then have a claim on a quantum meruit basis. So if it is not too late I would suggest that you prepare an appropriate variation document which sets out the basis for the extra work, and negotiate with the owner as to the terms.

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