Contributions and in-kind arrangements factsheet

If you’re a homeowner repairing your leaky home through the Financial Assistance Package, this factsheet will give you information about parties to your claim who offer contributions.

Other parties to your claim may offer contributions towards repair costs by way of cash, materials or labour. We accepts these “in-kind” contributions, and they can reduce your direct costs.

You (or a relation or friend) can also contribute labour if you are appropriately qualified to undertake weathertight repair work, as described below.

You and your parties can negotiate the level of contribution. It should be included in the Payment Plan application form.

Additional contributing parties

“In-kind” contributors are called additional contributing (AC) parties under the FAP scheme.

You will not be able to take legal proceedings against a party who is making an additional contribution to your claim under the FAP scheme.

You, the additional contributor and MBIE need to sign an additional contributor addendum to your homeowner agreement.

You and the additional contributor (AC) also need to complete and sign an AC contribution plan, which records the details and timing of contributions to be made.

If you need help, download a sample additional contributor addendum.

If your additional contributor is contributing cash, you must document the agreed amount in your payment plan application.

If your additional contributor is contributing goods or services, called work in-kind, you can find more information below.

Work in-kind

You need to ensure that anybody offering labour as a work in-kind contribution has the necessary ability and qualifications to do the work.

We will assess the value of the work at normal labour rates for tradespeople with the relevant qualifications.

Certain building work (including most work relating to primary structure and exterior cladding of houses) is restricted building work and must be undertaken by:

  • licensed building practitioners
  • people supervised by practitioners who are licensed in the relevant field.

Materials in-kind

You need to make sure any materials being contributed:

  • meet the requirements of your building consent
  • meet the specifications of the repair plan
  • align to the building consent application.

You should estimate the value of materials supplied in-kind based on the best trade rate available to the supplier of the materials (including any prompt payment discount).

Documenting work or materials in-kind contributions

You need to make sure any parties providing work or materials in-kind:

  • sign a contractor’s statement, unless they are a sub-contractor included on a main contract
  • provide a quote, unless their work is subject to the main contract (in which case, the information needs to be passed to the main contractor for inclusion in the quote covering the main contractor’s work).

You need to price any work in-kind to the same level of detail as “paid” work, and in the same format as other quoted work.

Check that the quote shows the full chargeable cost, the rebated amount and the net amount payable by you.

You need to provide invoices when work is complete. These must also show the full chargeable cost, the rebated amount and the net amount payable by you.

Download and complete the contractor’s statement form.

This information is published by the Ministry of Business, Innovation and Employment’s Chief Executive. It is a general guide only and, if used, does not relieve any person of the obligation to consider any matter to which the information relates according to the circumstances of the particular case. Expert advice may be required in specific circumstances. Where this information relates to assisting people: