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Update: Opting out of Fletcher/EQR

Posted 22 Mar 2012 by avonsidechch Popular

Posted in EQR , Rebuild , Suburbs

This is an update on the post made in February last year. Information on the FAQ part of the EQC website has changed since then. The latest version is reproduced below, and is on EQC's website here.

Be aware that choosing to go it alone is a high risk option. Any cost over-runs will be your responsibility, as will compliance costs.

Also be aware that EQC change the content of their FAQ often and DO NOT FLAG THE FACT that there have been changes. Consequently, check regularly if you are relying on the content of their website.

Opting out of using Fletcher EQR

EQC has engaged Fletcher EQR (Earthquake Recovery) to manage the repair of homes with damage between $10,000 and $100,000 (+GST) per event.

This includes some homes that have total damage over $100,000 (+GST) but sustained damage in multiple quakes. If that damage is below $100,000 for each event, the claim will be referred to the Canterbury Home Repair Programme.

What are the benefits of staying with Fletcher EQR?

You will not incur extra costs if the repair works exceed the EQC estimate.

All liabilities around the repairs will be covered by EQR, with any defects in the quality of the repair work put right by the EQR team at no cost to you.

Fletcher EQR will have full responsibility for managing all facets of your project including:

obtaining all building consents and design work
ensuring that all the work is completed to the standards set down in the Building Act
conducting quality audits as the repairs proceed
obtaining and forwarding to you copies of all relevant Code Compliance Certificates (at the conclusion of the work).

If you have a preferred contractor you may still be included in the scheme and retain all the scheme's protections, provided your contractor is accredited with Fletchers. Your contractor can apply for accreditation by emailing contractor<at>eqr.co.nz. For further information visit Fletcher's website: http://www.eqr.co.nz/

Can I opt of using Fletcher EQR? (click the link to continue)

Yes. If you do opt out you are responsible for:

managing all repairs
ensuring that the repairs comply with all relevant laws, including the Building Act
ensuring the necessary consents and building codes are obtained
resolving any disputes which may occur.

How do I opt out of using Fletcher EQR?

To opt out contact EQC on 0800 DAMAGE (0800 326 243) and request an opt out form and supporting information.
Get a quote from your contractor - this must cover all the areas detailed in the repair strategy completed by the EQC estimators and must be approved by EQC before any repair work can begin. The quote must provide a full breakdown of labour and material costs.

Obtain necessary building consent and ensure all repairs comply with the Building Act.

Progress payments can be made on completed work only, not in advance, and must be correctly invoiced for GST. All invoices must be either:

addressed to you and sent c/- EQC, or
sent to you direct for forwarding to EQC

It is important to ensure the invoice is prepared in your name.

EQC will pay the contractor directly on your behalf. As part of EQC’s audit processes, an EQC estimator may need to sight the repairs before any payment is made.

When the repairs are completed, and before the final payment is made, you will need to obtain either:

a Code Compliance Certificate where a building consent is required, or
a Producer Statement from your contractor where no building consent is required. A Producer Statement is a document prepared by your contractor confirming all work has been completed and the work complies with the Building Act.

Any disputes regarding non-performance of the contractor or substandard repair work are the responsibility of the property owner.

What to do if you find further damage

If you discover further damage during the repair process, you must notify EQC immediately and stop all work until the additional damage has been inspected and authorised by EQC and the cost agreed.

EQC excess payable by you

The excess for EQC claims for damage to contents and/or dwelling is 1% of the claim value, subject to a minimum excess of $200.

EQC will deduct the applicable excess from the first payment made to your contractor if the excess has not already been deducted in full from your contents claim. You are responsible for paying the excess on your repairs.

For more information see Consumer Build's website (a partnership between Department of Building & Housing, and Consumer).