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Labour only vs full building contracts

Here's some things to consider...

A full contract builder is responsible for managing your building project from go to whoa.  They will keep everything on track, organise all the building materials, make sure that all the sub-contractors turn up when they are meant to and that everything is ready for them to get on with their jobs.

As the owner you will still have some responsibilities. For example choosing appliances, light fittings, flooring, or paving – anything you want to have input into based on your taste and preferences. It's important to make sure that anything that you order is delivered on time and is compatible with the design. If contractors are left waiting it will cost you time and money!

It's crucial to have clear open communication with your builder. Ask his opinion and expect him to ask yours occasionally too. Try to avoid major mind changes too often.

A labour-only contract puts the organisational responsibility back onto the owner, or alternatively, a project manager. The builder is selling his labour ‘only', so it's up to the owner to organise everything needed to keep the building project on track.

Engaging a builder on a labour-only contract should not be undertaken lightly. Managing a large building project is a time-consuming job. Not only do you have to organise the contractors and the building materials, you will also be responsible for getting building permits and consents. It takes time, energy, diplomacy and an ability to get stuff done! 

Most people who engage a labour-only builder do so to save money. Before you make that decision ask yourself these questions.

  1. How much is my time worth?  
  2. Is that more or less than the builder's time? 
  3. Do I honestly have the project management skills and building know-how to make this work? 
  4. Do I have good communication skills and a good relationship with the builder and sub-contractors I will be using? 
  5. Will I actually enjoy doing this?

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