Buyer Created Tax Invoices: A Practical Guide for Principals and Asset Owners
BCTIs are becoming more common in New Zealand construction contracts. Used correctly, they reduce administrative friction and align tax documentation with certified payment amounts. Used incorrectly, they generate contractor disputes and expose principals to serious compliance risk under both the Construction Contracts Act 2002 and the Goods and Services Tax Act 1985.
This guide is written for those procuring and administering construction contracts. It covers how the traditional payment process works, what a BCTI is and is not, where the risks arise in practice, and what principals need to do to implement BCTIs correctly.
Buyer Created Tax Invoices are becoming more common in New Zealand construction — but most principals implement them wrong. A BCTI is a tax document, not a payment schedule, and confusing the two creates exactly the disputes it was meant to avoid. This free guide from BPM explains what BCTIs are, what IRD requires for them to be valid, how they sit alongside the Construction Contracts Act 2002 payment process, and what good implementation actually looks like — so you can use them to reduce administrative friction without creating compliance risk.
What you'll learn:
How the Construction Contracts Act 2002 payment process works — and why BCTIs don't replace any part of it
What IRD requires for a BCTI to be a valid tax invoice
The most common implementation mistakes — and their contractual consequences
How to structure the BCTI arrangement in your contract from the outset
How to coordinate finance and contract administration so the process stays compliant
What documentation you need to support each BCTI and protect your position in adjudication
Get BPM's Buyer Created Tax Invoices guide and implement a compliant, well-structured BCTI process on your next project — before the disputes arrive and the options narrow.
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