1. Performance Standard

The Consultant will perform the Services exercising the degree of skill, care, and diligence normally provided by a competent building inspector in the same circumstances. For residential buildings, the inspection is a visual assessment conducted generally in accordance with NZS 4306:2005 (Residential Property Inspection), except where modified or limited by these Engagement Terms.

2. Scope of Inspection (Visual, Health & Safety, and Invasive Testing)

2.1 Visual Inspection: Unless expressly agreed otherwise in writing, the inspection is a non-invasive, visual examination of readily accessible areas of the specified building at the date and time of the inspection. The inspection focuses on identifying significant apparent defects and is not technically exhaustive.

2.2 Access, Concealed Areas, and WorkSafe NZ Limits: The Consultant will not move heavy furniture, floor coverings, insulation, appliances, stored items, vehicles, vegetation, debris, or soil, nor dismantle any building element or excavate. All components and conditions that are concealed, camouflaged, behind finished surfaces (such as framing, plumbing, drainage, heating, ventilation, or wiring), or unsafe to access are excluded from the inspection and report. In accordance with WorkSafe New Zealand health and safety guidelines, exterior roof inspections are limited to safe 3.6-metre ladder access (single-storey height), and entry into roof spaces or subfloor areas is subject to unobstructed clearance, adequate lighting, and the absence of electrical, biological (vermin), or friable asbestos hazards.

2.3 Authorised Invasive Testing: Invasive testing (such as moisture probes, drilling test holes, or opening linings) will only be undertaken by prior written agreement with the Client and subject to the current property owner’s written consent.

(a) Any invasive testing is strictly limited to the specific locations agreed in writing, and findings at a test point do not guarantee the condition of untested areas.

(b) Unless explicitly quoted in writing, the Consultant is not responsible for repairing, patching, painting, or “making good” any holes, cuts, or minor damage resulting from authorised invasive testing.

3. The Inspection Report

3.1 General Guide Only: The report expresses the professional opinions of the Consultant based on visual impressions at the time of inspection. It is intended solely as a general guide to assist the Client in evaluating the overall condition of the property and does not reflect market value or make any representation regarding the advisability of purchase.

3.2 No Warranty or Code Compliance: Neither the inspection nor the report constitutes a Building Code compliance inspection, structural assessment, or an express or implied warranty or guarantee of the present or future adequacy, merchantability, life expectancy, or performance of the structure, its systems, or its appliances. Descriptions of systems or appliances relate to visible existence only.

4. Client Responsibilities, Agents, and Information

4.1 Access and Identification: The Client is responsible for accurately identifying the building (including any accessory units in a multi-unit complex) and arranging safe, reasonable access to all inspectable areas, including the roof space and subfloor space.

4.2 Disclosure and Reliance: The Client must disclose to the Consultant any known defects (apparent or concealed) or issues affecting the building prior to the inspection. Unless verification is expressly part of the Services, the Consultant is entitled to rely on the accuracy and completeness of all information provided by the Client or obtained from public or other reasonable sources without independent verification.

4.3 Client’s Agent: Where this Agreement is entered into by an agent (or a person purporting to act as agent) on behalf of the Client, the agent and the Client will be jointly and severally liable for payment of all amounts due to the Consultant under this Agreement.

5. Confidentiality, Copyright, Privacy, and Third-Party Reliance

5.1 Copyright and Permitted Use: The Consultant retains copyright in all reports and documents prepared in performing the Services. Subject to full payment of all fees due, the Client is granted a licence to use the report solely for the purpose of evaluating the property for this inspection. The Client has no right to use any report or document while in payment default.

5.2 No Third-Party Reliance: All written or oral advice and the inspection report are confidential and prepared solely for the Client’s exclusive use. The Client must not distribute, sell, or allow any third party to rely on the report without the Consultant’s prior written consent. The Consultant accepts no responsibility or liability to any third party who relies wholly or partially on the report.

5.3 Privacy Act 2020 Notice: In accordance with the Privacy Act 2020, personal information (including Client contact details, property records, and inspection photographs) is collected and stored securely by the Consultant solely for the purposes of performing the Services, issuing invoices, maintaining insurance and audit records, and complying with legal obligations. Personal information will not be sold or disclosed to unrelated third parties without consent, except as required by law or to the Consultant’s professional insurers and debt recovery agents.

6. Specific Exclusions

In addition to the general scope limits above, the following are excluded from the inspection and report:

6.1 Any area, site, system, or component not specifically identified in the report as having been inspected.

6.2 Specialist engineering, architectural, geotechnical, geological, hydrological, land surveying, or soil examinations.

6.3 Specialist testing or dismantling of electrical, plumbing, air conditioning, heating (including fireplaces and chimneys), security, fire warning and control, sewerage, stormwater, or ducted vacuum systems (other than general visual observation).

6.4 Environmental hazards or conditions, including asbestos, toxic fungi or moulds, timber pests or termites, electromagnetic radiation, toxic or flammable chemicals, air or water contaminants, or geological and flood hazards.

6.5 Sheds, outhouses, detached buildings, swimming pools, spa pools, saunas and associated equipment, or household, leisure, and laundry appliances (other than general visual observation).

6.6 Common property, shared areas, structures, or systems where the building forms part of a multi-unit complex.

6.7 Acoustical or other nuisance characteristics of any system, service, structure, or component of the building, complex, adjoining properties, or neighbourhood.

6.8 Any legal, title, boundary, occupational right, resource consent, planning consent, building consent, Building Code compliance, building warrant of fitness, or heritage obligations.

7. Weathertightness, Moisture, and Mould

The Client acknowledges that the inspection does not assess compliance with the weathertightness requirements of the New Zealand Building Code or the concealed existence of rot or decay. While the Consultant may note visible signs of moisture or mould to assist in assessing general condition, to the maximum extent permitted by law, the Consultant is not liable for any loss, damage, or claim (whether in contract, tort, or otherwise) arising directly or indirectly from concealed rot, decay, mould, fungi, protozoa, moisture ingress, or water penetration, except to the extent directly caused by the Consultant’s failure to exercise reasonable care and skill within the agreed scope of inspection. The Client acknowledges that weathertightness insurance cover is no longer commercially viable for building consultants.

8. Limitation of Liability and Indemnity

8.1 Statutory Rights: Nothing in this Agreement excludes, restricts, or modifies any right or remedy conferred on the Client by the Consumer Guarantees Act 1993 or the Fair Trading Act 1986. Where the Client acquires the Services for business or investment purposes, the parties agree that the Consumer Guarantees Act 1993 does not apply.

8.2 Financial Cap and Proportionate Liability: Subject to clause 8.1, to the maximum extent permitted by law, the Consultant’s total aggregate liability to the Client for all claims, losses, or damages arising out of or in connection with the Services (whether in contract, tort, including negligence, or otherwise) is limited to three times (3x) the fee paid by the Client for the Services. In addition, the Consultant’s liability is strictly limited to the proportion of loss or damage directly caused by the Consultant’s own act or omission.

8.3 Consequential Loss: To the maximum extent permitted by law, the Consultant is not liable for any indirect, special, or consequential loss, including loss of property value, loss of profit, or loss of enjoyment.

8.4 Client Indemnity: The Client agrees to indemnify the Consultant against all claims, losses, damages, and legal costs incurred by the Consultant as a result of the Client’s breach of this Agreement or unauthorised sharing of the report with third parties, except to the extent such claims are caused by the Consultant’s own negligence.

9. Fees, Cancellation, Payment, and Report Release

9.1 Payment Terms: The Client will pay the Consultant all agreed fees and disbursements upon receipt of invoice (sent electronically or by post) and prior to the release of the written inspection report, unless agreed otherwise in writing.

9.2 Cancellation and Aborted Inspection Fee: If the Client cancels or reschedules the inspection with less than 24 hours’ notice prior to the scheduled appointment time, or if the Consultant attends the property and cannot gain safe, reasonable access to carry out the inspection, the Consultant is entitled to charge a cancellation or call-out fee equal to 50% of the quoted inspection fee (plus GST) to cover travel and allocated time.

9.3 Overdue Accounts and Recovery Costs: Invoices remaining unpaid 10 days after the due date will incur default interest at 1.5% per calendar month, calculated daily from the due date until payment is received in full. The Client will pay all costs and expenses incurred by the Consultant in recovering overdue amounts, including debt collection fees, legal costs on a solicitor/client basis, and internal administration costs.

10. Additional Work

If the Consultant considers additional work necessary or advisable while performing the Services, the Consultant will notify the Client in writing and obtain the Client’s prior written approval before proceeding. Unless agreed otherwise in writing, these Engagement Terms will apply to all additional work with reasonable adjustments to the fees and timeframe.

11. Protection of Consultant’s Employees and Agents

The Client acknowledges that while the Consultant operates through directors, employees, and individual agents, no personal reliance is placed on those individuals by the Client. The Client contracts solely with North Star Inspections (NZ) Ltd and agrees that the Consultant’s directors, employees, and individual agents have no personal liability to the Client in contract, tort (including negligence), or otherwise in connection with the Services.

12. Suspension and Termination

12.1 Termination for Non-Payment: If the Client defaults on any payment due for 14 days, the Consultant may issue written notice requiring payment within 7 days. If the Client fails to pay within that 7-day period, the Consultant may immediately suspend the Services or terminate this Agreement without further notice and without liability for any resulting loss or damage.

12.2 General Termination: This Agreement continues until all Services are completed unless terminated earlier by mutual written agreement, under clause 12.1, or by either party if the other party fails to remedy a material breach within 7 days of receiving written notice.

13. Dispute Resolution and Governing Law