Payments are in Coin not Timber: c15 September 2023

I have been told not to put up too many ‘negative’ posts because I will be seen as a complainer. I should be saying positive things.

I do say a lot of positive things about residential NZ property development but it is not all a bed of roses. It is a sandpit of tensions grating against each other. The strongest and most nimble get the nicest playing spot (sometimes being big means you aren’t nimble).

Today I am not being ‘nice and kind’ because the payment system in the industry is absolute rubbish. The Goliath’s of this industry destroy the David’s (if we let them because it is the easy way out).

I have spent $6,000 so far trying to get payment from a major merchant.

The merchant supplied appalling frames (not even compliant with 3604 in some parts).

The merchant agreed that their work was bad (100% they agreed) but sadly could not remediate for several weeks. They engaged my builder directly and specifically to do the repairs naming his company and asking that he invoice them for his work (your company to our company), detailing the hours and rate.

I as the merchant’s customer (having signed the supply contract) was excluded from all of this and was not aware of the agreement.

The merchant’s supply contract says they get the final say in price. But they did not contract remediation with me, it was with the builder.

Roll forwards several months. Lawyer to lawyer letters have been sent, strictly in compliance with the Construction Contracts Act 2002. A payment schedule was received from the merchant agreeing to pay. They paid ONE FULL DAY late and even worse that was into a trade account (not the builders).

The project’s construction is finished.

Payments are in coin not timber. Tell me how a labourer feeds themself on a length of premium pine.

I have emailed the merchant politely requesting payment – a black hole as usual they don’t reply.

It is Saturday evening, following a day of working on site to install fencing and drainage.

I am preparing YET ANOTHER full set of emails, text messages, compilation of lawyer’s letters, photos, and correctly issued invoices, received payment schedules. I am tired.

Now I will go to the small claims (it is under $30,000). I hope the person appointed to our case knows the law.

No wonder our houses are expensive. For this project I am wearing 1 x subcontractor having pierced my sewer line and not being prompt on following up on his insurance claim. 1 x major merchant owing $16,000, one professional group having falsely signed documents leading to a ‘real’ 7 week delay and they don’t have to pay because the contract has the ‘no consequential damages’ clause.

Why don’t more of us speak up and out.

It isn’t all ‘pat on the back’ and say the nice stuff.

About the author
Kirsty Merriman
For years I would plan houses, travel widely and observe communities. I also had the privilege of working for New Zealand's largest dairy company in both New Zealand and Malaysia. All the while supported by my husband and young daughter. After a while, our roles swapped and we moved to the Arabian Gulf. Meanwhile my passion for property and communities continued to simmer.

Along came COVID and had no choice but to pivot... in the words of Robert Frost, I looked for and "found the road less travelled by" and decided that maybe I could "make [a] the difference".

I look for to find insights and built a few of the houses that we need. This means a saleable house and a profitable and sustainable business.

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