What Is A Supply & Install Agreement? (2026 Updated)

If your business supplies products and installs them (or you’re paying someone else to do both), a handshake deal can get messy fast.

Maybe you’re supplying and installing heat pumps, shop fit-outs, security systems, solar panels, flooring, fencing, signage, commercial kitchen equipment, or bespoke joinery. The job usually starts simple: someone agrees on a price and a timeline, and everyone’s keen to get moving.

But once materials are ordered, site access changes, variations pop up, and the client expects “installation” to include a few extra bits, that’s where disputes tend to happen. This 2026-updated guide explains how a supply & install agreement works in New Zealand, what it should cover, and how it protects you from day one.

What Is A Supply & Install Agreement?

A supply & install agreement is a contract where one party agrees to:

• supply goods (the products/materials), and
• install those goods (the on-site labour and services),

for an agreed price and under agreed terms.

It’s common in trades and project-based work where your customer doesn’t want to coordinate separate suppliers and installers. They want one business accountable for the whole outcome.

In practice, a supply & install agreement usually sits somewhere between:

• a pure sale of goods contract (where you only deliver the product), and
• a pure services contract (where you only provide labour).

Because it covers both goods and services, the agreement needs to deal with both sets of risks (product issues, delays in shipping, installation quality, site conditions, and variations).

Supply & Install Vs Supply Only

In a “supply only” arrangement, your responsibility typically ends when the goods are delivered (subject to any guarantees or warranties you give).

In supply & install, you’re often also responsible for:

• measuring and confirming specifications (or clearly stating what you’re relying on)
• site coordination and installation scheduling
• quality of workmanship
• sign-off and commissioning (where relevant)

That added scope is exactly why the contract matters.

When Do You Need A Supply & Install Agreement?

You don’t always need a long, highly negotiated contract for small jobs. But you do need clear written terms whenever the job has meaningful cost, lead times, or risk.

Supply & install agreements are especially important when:

• The goods are expensive (or custom-made, imported, or non-returnable).
• The job involves multiple site visits or relies on other trades being ready.
• The timeline matters (for example, a retail fit-out before opening day).
• The scope might change (variations are common in real-world installs).
• There are safety or compliance risks (electrical, gas, structural, or high-risk sites).
• You’re using subcontractors and need to align responsibilities.

A Quick “Real Life” Example

Let’s say you supply and install a commercial refrigeration unit. The client later says the unit is “too loud” and demands replacement. You say it’s within manufacturer specs and the noise is coming from the building’s ducting and layout.

If your agreement clearly sets out:

• what was supplied (including model and specs)
• what installation includes (and doesn’t include)
• site responsibilities (like ventilation requirements)
• acceptance testing and sign-off

you’re in a much better position to resolve the dispute quickly (and avoid paying for problems you didn’t cause).

What Should A Supply & Install Agreement Include?

There’s no single “one size fits all” supply & install contract. The right terms depend on your industry, the type of goods, the site risks, and whether you’re dealing with consumers or businesses.

That said, most well-drafted supply & install agreements in NZ will cover the following core areas.

1) Scope Of Works (Supply + Installation)

This is where you get specific. Your agreement should clearly describe:

• the goods being supplied (brand/model/specifications/quantities)
• what “installation” includes (and any exclusions)
• any assumptions you’re making (for example, that the site is ready, power is available, access is provided, existing structures are fit-for-purpose)
• who is responsible for disposing of old materials or waste

If you use a proposal or quote, your contract should state whether that quote forms part of the agreement, and what happens if there’s a conflict between the documents. It’s also worth checking whether a quote is legally binding in your situation, because misunderstandings here are very common.

2) Price, Payment Terms, And Deposits

Payment clauses are where you protect your cash flow (and reduce the risk of doing a big install and then chasing payment).

Your agreement can address:

• deposit amounts and when the deposit is due
• progress payments (especially for longer projects)
• milestones (for example, deposit on signing, payment on delivery, payment on completion)
• late payment interest or recovery costs (where appropriate)
• what happens if the customer delays the project after goods are ordered

For example, if goods are custom-ordered, you may want a non-refundable deposit that covers supplier costs once an order is placed.

3) Lead Times, Installation Dates, And Delays

Timelines are a huge source of conflict. A supply & install agreement should set out:

• estimated lead times for goods (and whether they are estimates only)
• conditions for installation dates (such as “site must be ready”)
• how delays are handled if the customer isn’t ready or can’t provide access
• what happens if the supplier (or installer) is delayed due to events outside reasonable control

It can also help to define what a “business day” means in your contract (for example, excluding public holidays), particularly for notice periods and payment timeframes. If you’ve ever had a dispute about deadlines, business day definitions can be surprisingly important.

4) Variations (Changes To Scope)

Variations are normal. The legal problem is when the parties don’t agree on:

• what counts as a variation
• who can approve it
• how it is priced
• whether it impacts the timeline

A good variations clause typically requires variations to be approved in writing (even if that “writing” is an email confirmation), and it explains how the variation will be charged (fixed price, time and materials, or a schedule of rates).

This is also a good time to think about contract change mechanics generally. If you want a clear and practical approach, your contract can reflect the basics in how to change a contract so neither side assumes a casual conversation became a binding variation.

5) Risk, Title, And Damage To Goods

When you’re supplying goods, you’ll want to clearly state:

• when risk passes (for example, on delivery to site, or after installation/sign-off)
• when title (ownership) passes (often after full payment)
• who is responsible if goods are damaged on site before installation (this depends on site control and storage)
• how goods must be stored if delivered early

This matters because goods can be damaged by other trades, weather, theft, or site conditions. If your agreement doesn’t cover it, you can end up wearing the cost even when it’s not your fault.

6) Warranties, Defects, And Workmanship Standards

Most customers assume there’s a “warranty” - but what that actually covers can vary.

A supply & install agreement should clarify:

• manufacturer warranties (and whether you’re passing them through)
• your workmanship warranty period (if any)
• the process for reporting defects
• timeframes to inspect and notify issues
• what remedies you’ll provide (repair, replacement, re-installation, etc.)

It’s also important to ensure your warranty wording aligns with New Zealand consumer law. If you’re dealing with consumers, you generally can’t contract out of key protections under the Consumer Guarantees Act 1993.

Even in business-to-business jobs, you should be careful with how warranties and limitations are written, because they need to be fair and clear to actually help you in a dispute. If you’re uncertain how far you can go, concepts like limitation of liability are a good starting point (and a lawyer can tailor it to your risk profile).

7) Health And Safety, Site Access, And Customer Responsibilities

Supply & install work often happens on someone else’s site, which creates shared responsibilities.

Your agreement can set out:

• site access requirements (hours, induction requirements, supervision)
• who provides safe access and a safe working environment
• what happens if the site isn’t ready (for example, extra charges for wasted trips)
• who is responsible for permits, approvals, or building access

While your contract doesn’t replace your obligations under health and safety law, it helps set expectations and reduces grey areas.

What Laws Affect Supply & Install Agreements In New Zealand?

One of the tricky parts of supply & install arrangements is that multiple legal “layers” can apply at the same time.

Here are the most common ones to keep in mind.

Consumer Guarantees Act 1993 (CGA)

If you’re supplying and installing goods for a customer who is buying for personal, domestic, or household use, the CGA is likely to apply.

In plain terms, the CGA implies guarantees that the goods and services will meet certain standards (like acceptable quality and reasonable care and skill). You typically can’t simply write “no refunds” or “no warranty” and expect it to override the CGA.

If you’re dealing with business customers, it may be possible to contract out of the CGA in some circumstances, but it needs to be done properly (and it won’t be suitable for every situation).

Fair Trading Act 1986 (FTA)

The Fair Trading Act 1986 is a big one for anyone quoting and selling goods and services in NZ. It prohibits misleading or deceptive conduct.

That means your marketing, quotes, and representations about things like performance, lead times, and “included installation” need to be accurate and not likely to mislead.

A well-drafted agreement helps here because it clearly records what’s included, what’s excluded, and what assumptions the price is based on.

Contract And Commercial Law Act 2017 (CCLA)

This Act is part of the broader framework that governs contracts in NZ, including how certain terms may be enforced and remedies for breach.

You don’t need to know the Act inside out to run a business, but it’s worth understanding this: if your agreement is vague, incomplete, or inconsistent with what was promised, it’s harder to enforce and easier to argue about.

Construction-Adjacent Rules (Where Relevant)

Not every supply & install job is “construction” in the technical sense. But many are closely tied to building works, subcontracting, and site management.

If your work is part of a larger project (for example, fit-outs or trades work), your contract might need to align with the head contractor’s requirements and clearly allocate responsibility for defects, delays, and access.

Where subcontractors are involved, it’s worth having a proper Sub-Contractor Agreement so your obligations to the client are mirrored in your subcontract terms (and you’re not stuck in the middle if something goes wrong).

Common Risks (And How A Good Agreement Helps)

Most disputes in supply & install work don’t come from “bad intentions”. They come from unclear expectations and poor documentation.

Here are some of the most common risk areas we see, and how the contract can help keep things on track.

Scope Creep And “While You’re Here…” Requests

If the customer assumes extra work is included, and you assume it’s chargeable, you can end up in a “he said, she said” dispute.

Contract solution: a clear scope, exclusions, and a variations process.

Delays Caused By The Site Or Other Trades

Even if you’re ready to install, you might arrive and find the site isn’t ready, access is blocked, or another trade hasn’t finished.

Contract solution: site readiness obligations, re-attendance fees, and clear scheduling terms.

Damage Or Theft Of Goods On Site

If the product is delivered early and stored on site, who wears the cost if it’s damaged or disappears?

Contract solution: risk and storage clauses (and a clear handover point).

Non-Payment Or Slow Payment

Installation work can be labour-intensive, and the supplier costs can hit before you’ve been paid.

Contract solution: deposits, progress payments, title retention (where appropriate), and enforcement rights.

Disputes About Quality Or “Defects”

Sometimes the product is fine but the customer expected something different. Other times there’s a genuine defect, and you need a clean process to fix it without it turning into a wider dispute.

Contract solution: acceptance/sign-off procedures, defect reporting timeframes, and warranty alignment with consumer law.

How Do You Set Up A Supply & Install Agreement That Actually Works?

A supply & install agreement is only useful if it matches how you run jobs in the real world.

Here’s a practical way to approach it.

1) Map Your Typical Project Lifecycle

Before drafting, list your usual stages:

• site visit and measurements
• quote acceptance
• deposit
• ordering materials
• delivery to site
• installation
• testing/commissioning
• handover and final payment

Your agreement should support these stages (especially payment timing and what triggers installation).

2) Decide What You’ll Standardise Vs What You’ll Customise

Some terms can be consistent across all jobs (like payment terms and variations). Others should be tailored job-by-job (like scope, site requirements, and installation dates).

Many businesses use a “framework agreement” with a job-specific schedule or statement of work. If you already use broader service terms, it can also be helpful to align your supply & install agreement with your other client documents, such as a Service Agreement.

3) Get Clear On Who Your Customer Is (Consumer Vs Business)

This changes what you can (and can’t) include, especially around warranties and liability.

If you sell to both consumers and businesses, you may need different versions of terms - or at least carefully drafted clauses that handle both scenarios.

4) Don’t Rely On Templates For High-Risk Jobs

It’s tempting to download a template and “fill in the blanks”, but supply & install work is full of moving parts. If the contract doesn’t reflect your actual risks, it won’t protect you when it matters.

Getting a contract drafted or reviewed is a lot cheaper than dealing with an installation dispute, a withheld final payment, or a claim that the whole job needs to be redone.

5) Make Signing And Variations Easy

A contract that’s hard to use won’t get used. Keep it practical:

• use clear, plain English
• build in a simple approval process for variations
• confirm key changes in writing (email is often enough, depending on your contract terms)

If you regularly sign contracts electronically, it’s worth making sure your signing process is valid and consistent, especially when jobs start quickly or are agreed remotely. In some situations, electronic witnessing of documents may be relevant (particularly for deeds), so it’s good to get advice on what your particular document requires.

Key Takeaways

• A supply & install agreement is a contract covering both the supply of goods and the installation services, which means it needs to address risks on both sides (products and workmanship).
• Clear scope wording (including exclusions and assumptions) is one of the best ways to prevent disputes about what was “included” in the price.
• Strong payment terms (deposits, milestones, and late payment rights) help protect your cash flow, especially where goods are ordered upfront.
• Variation clauses are essential because scope changes are common in installation work, and a written approval process prevents “surprise invoices” and disagreements.
• New Zealand consumer and commercial laws like the Consumer Guarantees Act 1993 and Fair Trading Act 1986 can apply, so your warranties and representations need to be compliant and accurate.
• Templates can be risky for supply & install work, because the details (risk, title, defects, site access, delays) need to match how your projects actually run.

If you’d like help drafting or reviewing a supply & install agreement (or tightening up your quoting and variations process), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.