Understand the costs of project management and whether they qualify for contributions.
If you're a homeowner repairing your leaky home through the Financial Assistance Package (FAP), this factsheet will give you guidance about associated costs you may expect through the process.
You may incur three types of costs that do not relate directly to construction as you work through the repair process using the Financial Assistance Package. These are:
- associated costs
- other costs, not directly related to construction
- accommodation and storage, and pre-repair valuation fees
1. Associated costs are fees from consultants and your council. They are for:
- design and documentation
- project management
- building and resource consent
2. In your specific situation, you may need other services that may qualify for contributions. To qualify, they must be required as part of repairing weathertight issues. They include:
- contract works insurance, if not provided by your builder
- quantity surveyors, if works are highly complex
- structural engineers, if the structure is contributing to your home leaking.
- remediation specialists, if works are highly complex.
3. In addition, you can claim the following costs:
- Alternative accommodation and storage, if repairs are to your normal home. We will only consider total costs that are less $5000 per home or unit. We will pay 25 or 50 percent of the total cost.
- Pre-repair valuation fee. Half of this fee will qualify for contributions.
Many of the costs for consultants like designers may include services that relate to betterment. This means that only a portion of their fees relates to weathertight repairs, so only a portion of the cost will qualify for contributions.
There are indicative costs for parts of the repair process. They are listed below:
Design and documentation
For a simple reclad with no changes to the design of the building, the fee is likely to be reasonably low. This is because the designer shouldn’t require much time to design and document a straightforward repair:
- Indicative cost: 2-10 percent of total construction value
For a complex project where technical issues are challenging, such as where the designer needs to resolve targeted repairs, the necessary fee will be higher.
If there is a lot of betterment (such as if you’re radically altering the layout or extending your home), the fee may be higher. The fees associated with betterment will not qualify for contributions.
Basic reclads will require less project management than more complex ones like large multi-unit complexes with separate blocks.
- Indicative cost: up to 5 percent of total construction value
In many cases, one consultant may provide project management as well as design and documentation services. If so, their fee will most likely be a combined cost.
- Indicative cost: could be more than 5 percent if justified for a specific project
Project management fact sheet explains the role of a project manager for a building project.
Building and resource consents
The indicative cost of obtaining a building or resource consent will vary from council to council. It will also relate to the nature of your building project (simple or complex; low or high value).
Your council may be able to estimate the cost of your consent before you submit it, or they may have indicative fees available.
A building consent for a weathertight repair may require more inspections than other building projects of the same value, and this may be reflected in the council fees.
It is unusual for a resource consent to be required for a weathertight repair. However, if your weathertight issues require one, you will need to explain this in your repair plan and payment plan applications. If possible, include supporting documentation from the council that confirms the resource consent is required.
- quantity surveyors
- remediation specialists.
You may need a quantity surveyor for highly complex jobs, to assist in reviewing tenders and/or administering the construction contract.
- Indicative cost: up to 5 percent of total construction value, or more if justified for a specific project.
You may require a structural engineer if the structure has contributed to leaking (if it moves too much and that has caused leaks). They may need to redesign the structure.
- Indicative cost: you will need to discuss this with your engineer as it will depend on the specific nature of the project.
You may need a remediation specialist if work is complex, such as targeted repairs. If so, their fee should be considered in conjunction with the general design fee:
- Indicative cost: 2-10 percent of total construction value.
You will not require a privately engaged remediation specialist to assess the extent of damage on-site during construction. MBIE or the council will provide this service at no cost to you. Therefore, if you engage a specialist to inspect damage, their fee will not qualify for contributions.
Alternative accommodation and storage
If you normally live in the home that you are repairing, and need to pay to live somewhere else, and/or store your home’s contents – up to $5,000 qualifies for contributions.
This means a maximum contribution of $2,500 if both the government and council are contributing.
- Indicative cost: up to $5,000 per home or unit will qualify for contributions.
Pre-repair valuation fee
Your bank may require a valuation of your home or complex before approving finance.
- Indicative cost: half of the fee qualifies for contributions.
Associated costs and contributions
The portion of your associated costs that are related to weathertight repairs will qualify for contributions.
When we review your payment plan, the amount of associated costs that qualify for contributions will be determined along with the qualifying amount for construction.
When you complete building work, we will determine the qualifying amount again in your final payment claim. This is when we check the actual cost with invoices and other verifiable documents (typically construction contract documents and statements provided by on-site inspectors) that you provide.
This means that associated costs for:
- Simple repair projects will have a larger portion qualify for contributions, possibly all of it if there is no betterment, and the fee is considered a reasonable market price.
- Projects with more betterment (or other non-qualifying costs) will have a smaller portion qualify.
If your costs are unreasonably high, they will be adjusted to reflect a reasonable market price. You will need to explain in your payment pan application if you believe you can justify a higher than normal cost.
Associated costs and betterment
If there is betterment or other non-qualifying costs in your project, we will identify aspects of your costs which do not qualify and deduct them from the qualifying amount.
If that cannot be done, for example if invoices or estimates are not sufficiently detailed, we may deduct a portion of associated costs. This reflects the value of construction repairs in relation to the total cost of construction.
For example, if your repairs are 80% of the total cost of building work, then your qualifying associated costs could be 80 percent of the total consultant and council fees. This approach is applied if-and-as appropriate.