Why do I need to provide the estimated value of building work?
The estimated value of building work is required to work out what levies are due to the Ministry of Business, Innovation & Employment, and BRANZ (Building Research Association New Zealand). Anything with an estimated value of $20,433 or more incurs a Building and Building Research Levies – Refer Building Fees for more information
The applicant becomes liable for the levies when the building consent is issued, and must pay them before the building consent is granted.
What should I include in the estimated value of my project?
Under the Building Act 2004 the definition of estimated value in relation to building work is “the estimated aggregate of the consideration, determined in accordance with section 10 of the Goods and Services Tax Act 1985, of all goods and services to be supplied for the building work.”
The Goods and Services Tax Act clarifies the value further by stating that the value is equal to the aggregate value of any supply of goods and services. This means that the amount of the monetary consideration is treated as being the open market value of the supply of the goods and services regardless of whether any of the goods or services are being provided at no cost to the project.
In the context of your building project, the estimated value should take into account all actual costs and any additional materials or labour provided free of charge to the project. Please ensure you provide an accurate estimated value.