Not understanding types of procurement or contract
Failing to understand the implications of different procurement and contract options may lead to unexpected delays and rising costs. As you did during the Plan stage, you should again consider if you have the required knowledge and time to undertake the tasks you are committing to, or if it is better to let others help out.
You should be aware that using contracts without fixed pricing carries more risk than those with, as costs may increase over the course of the project.
It is very important to fully understand what is, and is not, included in the contract, how the contract covers disputes, and what happens in case of any delays.
Selecting a builder based solely on cost
There is also great risk in choosing a builder based solely on price. Lower bidders may, for example, include fewer guarantees if the job is unsatisfactory and may have excluded items that higher bidders did not. You shouldn’t assume coverage by a builder’s guarantee, as cover is not always automatic and might not be fully comprehensive. Usually a premium based on a percentage of the works will need to be paid. Master Builders and the Certified Builders Association of New Zealand can provide comprehensive private building guarantees that are only available to builders that belong to these associations. Make sure these items are clear and specifically listed in the contract.