ORDER PROCESS

BUILDING CONTRACTS

As every project is different, ECOTECH offers a range of building contract options – each providing varying levels of involvement at the 3 different stages of a build

 
order process diagram.jpg
 

Option 1: CONVENTIONAL BUILD CONTRACTS

This option allows experienced Developers to maintain strong control of the build process by contracting directly with vendors for all 3 stages of the build.  ECOTECH is contracted to manufacture and the supply of the modules to site.  The commissioning and assembly of the Ecotech modules is contracted directly by the customer using ECOTECH CONSTRUCTION & CIVILS under a separate building contract.

Option 2: MANAGED BUILD CONTRACTS

Managed Build contracts are commonly used by larger Developers that have access to their own professional building teams and would prefer to use them to complete the site preparations. Once the foundations are completed and signed off, the site is passed over to ECOTECH CONSTRUCTION & CIVILS to fully manage the project though to the issue of the Code of Compliance.  ECOTECH CONSTRUCTION & CIVILSprovides a fixed priced contract for manufacture, transport, installation and completion of the product. 

Option 3: Full Turnkey

Full Turnkey building contracts provides our Customers with the highest level of certainty.  ECOTECH CONSTRUCTION & CIVILS wil issue you with a fixed priced contract for the full build - with payment conditional on the successful issue of the Code of Compliance.

Full Turnkey contracts are ideal for Customers new to Modular building or Developers that would prefer to trade margin for higher levels of certainty.

 

Payments

To provide customers with the best safe guards, Letters of Credits (LCs) are used to fund the overseas production of Modules.  The LC system offer buyers two significant advantages:

1. Excellent Fraud Protection
LCs provides very high levels of protection against non-supply or delivery of sub-standard product. This is because payment is conditional upon vendors providing:

  • proof of shipment (Bill of Lading); 

  • proof of your acceptance of the goods (Pre-shipment Acceptance certificate)

  • a compliance certificated from SGS certifying that the modules have been manufactured in accordance with the MultiProof certificate conditions.

If any of the LC conditions are not fully met, you don’t pay.

2. Interest free money
LCs work a little bit like a pre-approved home loan, with payment of the funds timed for when the project is fully completed. LCs are set up at the commencment of manfacturing, however payment is not until after shipment of the goods from China. Typically the deferred payment terms are 45 days following shipment - as this provides sufficent time for the modules to get to NZ and be on the foundations before the funds are transferred. It may be possible to negotiate longer terms for sites further from a port.

 
 

DEPOSITS

The following deposits are payable:

  • 5% Design Deposit - covering the design, engineering and shop drawings needed to secure a MultiProof Certificate

  • 15% Procurement Deposit - covering the cost of procuring and testing the componentry needed for manufacturing the modules

  • 15% Production Deposit - to secure a confirm place and date on the factory production schedule

 

Shown below is a diagram summarising the typical payment process.

LC payment process.JPG