Yesterday EQC sent an e-mail to those on their newsletter list with the following information on Opting Out:
‘Opting out’ has been in the media lately. What is opting out and why is it offered? EQC explains.
All properties with total damage over $15,000, but with no one claim over $100,000 + GST are referred to EQC’s Canterbury Home Repair Programme, project managed by Fletcher EQR. Customers who choose to, can ‘opt out’ and manage repairs themselves, using their EQC entitlement, but organising all the logistics involved in the repair process. Before work begins, EQC and the customer agree the scope and cost of repair work.
Recently, EQC has made a number of changes to the opting out process. These changes have been made in order to streamline the process for customers; making it easier for them to take control of their own repairs should they choose to do so.
When a customer opts out, they are taking over the role of project manager from Fletcher EQR. With this role comes the responsibility to oversee the repairs of their house, and this includes payment of their contractor of choice.
As repair work is completed, the customer (as project manager) presents invoices to EQC and these are paid. If, for whatever reason, the invoice falls due before EQC has paid the funds, then it becomes the project manager’s responsibility to pay the invoice and then to be reimbursed. EQC’s standard payment terms are the 20th of the month following invoice (although in practice we usually pay within two to three weeks of presentation of the invoice). Provided the invoice is correctly completed and received on time, the customer/project manager should have no difficulty paying the contractor on time.
Project management is not the most appropriate solution for everyone, which is why the Fletcher EQR project management option exists: to give customers the peace of mind by taking care of all the building consent requirements, financial responsibility and quality control.
Did you know?
More than 18,000 houses have already been repaired under the Canterbury Home Repair Programme. This is the equivalent of repairing all houses in Nelson city.