Payment plan application factsheet

If you're a homeowner repairing your leaky home through the Financial Assistance Package (FAP), this factsheet will help you complete your payment plan application form, including remediation costs, milestone payments and betterment-related work.

You will receive a personalised payment plan application form from us with your repair plan approval. It is an Excel spreadsheet, and you will need to fill it out.

For reference, you can also download a blank payment plan application form.

You will need basic Excel skills to complete this spreadsheet.

Complete your payment plan form

Work your way from left to right across the 10 green tabs at the bottom of the spreadsheet. You need to complete the pale blue fields. Other fields are locked.

There are user notes explaining each tab and the information you need to provide. You will also find other handy tips for completing the spreadsheet.

Tab A: Claim Details

You should list the details personal to your claim.

Tab B: Building Costs

You should list your building costs. These are normally obtained from your builder’s quote.

The quote (or the combination of quotes from all contractors who will be on site) must be comprehensive and cover all the work identified in the repair plan.

Tab B1: Monetary

You need to enter any monetary allowances included in your builder’s quote.

Monetary allowances are sums included within your builder’s quote for use towards the cost of parts of the work which are provisional at the time of tender. A common example is a sum set aside for timber replacement, which cannot be easily measured until cladding is removed and the extent of damage is known.

You need to show the amount and purpose of all monetary allowances included in your builder’s quote. We will review the actual amounts expended against these allowances when your repair is complete.

Variations and change requests factsheet has information on monetary allowances.

Tab B2: Betterment

You need to enter details of the value of all betterment items described in your repair plan approval letter.

In most cases, we will require detailed cost information on each betterment item. This includes:

  • The cost of the ‘proposed work’ (the cost of the work you are actually doing), compared to the value you believe is the cost of the ‘approved work’ (the ‘like-for-like’ repair that is typically as described in your assessor’s report).
  • If the proposed work costs more than the approved, then the additional cost is your valuation of the betterment. This valuation should be entered in the ‘Claimant valuation’ entry in the betterment tables that appear in this section.
  • If there is no additional cost, and therefore no betterment, you should enter ‘0’ (zero) in the ‘Claimant valuation’ entry.
  • An explanation and breakdown of how the betterment figure was derived.  Enter this in the ‘Claimant’s comment’ entry.

This information is best provided by your builder, or someone who can quantify your costs. You will need to give a copy of your repair plan approval letter to people who are providing information for the payment plan. This will be necessary for them to properly separate the cost of betterment items.

If the comparison is complex, you may need advice from an appropriate professional, such as a quantity surveyor. They will be able to estimate the betterment for you. Their fee for this service qualifies for contributions.

If you have more information than the payment plan spreadsheet can accept, you should cross-reference to a separate document, notably to explain your betterment valuations. Make sure the ‘Claimant valuation’ entries are still completed in the spreadsheet.

Betterment factsheet tells you what qualifies as betterment.

Tab B3: Other Repairs

You will need to refer to your repair plan approval letter.

This lists the ‘other repair’ items (which are not approved repairs). You should include the costs of the ‘other repairs’ in a similar way to betterment items. They should be sourced from your builder’s quote.

Tab B4: Contributions in kind

You need to enter details of the nature and value of any in-kind or cash contributions.

You need to show the value of any in-kind contributions in your payment plan application. This includes:

  • cash
  • work in-kind
  • materials in-kind.

Cash and in-kind contributions by third parties can only be made after negotiation with the homeowner, or by the homeowner themselves.

Download the Contributions and in-kind arrangements factsheet.

Tab C: Associated Costs

You will need to enter details of associated costs incurred towards your repair, such as professional fees and consent fees.

Associated costs factsheet has details about these fees.

Tab D: milestone schedule

You will need to list when you think your repairs are going to meet construction milestones.

You will be entitled to submit payment claims when approved milestones are met.

The milestones will be verified by our inspector or the council. Contribution payments will then be authorised for release and paid to you.

In most cases, we expect milestones to follow its default settings, and you will only need to provide the expected dates.

However, you may propose a “customised” set of milestones if the complexity or scale of the job demands it.

Milestone payments factsheet has information to help you understand milestone payments and contributions.

Tab E: Schedule of Rates

You will need to give us information about any changes to work after construction has started.

We requires this information to review and agree on the price of any changes to the work (such as additional or reduced work) necessary after construction has started.

You will need to complete:

  • a schedule of rates for items of building work (e.g. replacing typical wall framing members)
  • a schedule of hourly rates for contractors (to assess the value of variations).

Tab F: Checklist

This is a checklist of documentation to include when you submit your completed application to us.

If your application does not include all necessary documentation, your payment plan may not be able to be reviewed until this has been provided.

Submit your payment plan

Once you have completed the payment plan application and obtained all of the documentation as per the checklist, submit your completed application to your claims advisor.

MBIE reviews your payment plan

1. MBIE will review the information you submit in your payment plan application.

We will review your submission and determine an amount that qualifies for FAP contributions.

Note that any amounts specified in the payment plan for work and materials “in-kind” will be factored into the total approved costs on which the contribution payments from the government and council, if contributing, will be based.

2. Your proposed associated costs will be considered to ensure they are reasonable.

If there is any betterment in your repair plan, your associated costs will be adjusted to reflect this. This may involve factoring your associated costs by looking at the value of betterment as a proportion of total costs. Where this is not appropriate to the situation, we will determine a reasonable allowance for associated costs relating to betterment.

3. Your schedule of rates will be reviewed to ensure that any changes required to the scope of work will be priced in a reasonable manner.

We may need to make some changes to line items if they do not reflect fair and reasonable market rates, before approving your payment plan.

Outcome of review

You will be sent a payment plan approval letter from us to advise you if your payment plan is accepted and the amounts contributions will be based on.

These amounts may vary from those you submitted, for the following reasons:

  • betterment costs may not be clearly separated, we may value betterment differently to your valuation
  • costs may be adjusted because they don’t reflect the current market.

Any adjustments will not affect your arrangements with your preferred builder – you remain free to accept or reject your preferred quote.

However, adjustments will affect contribution levels from the government and council which may increase your share of costs if you accept the quote.

Rates may be adjusted because they don’t match the quote or don’t reflect the current market:

  • if there are significant variations in the course of the work, variation prices will only be approved for contributions based on the approved rates.

You are free to accept or reject your preferred quote, but such adjustments may increase your share of any variation costs if you accept the quote.

The payment plan approval letter will also advise you if your proposed milestones are accepted (if changed from default milestones).

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: