How much deposit should I pay a builder?

Industry best practice is a deposit of no more than 10% of the contract value. Payments should then be tied to completed milestones. Never pay the full amount upfront. The Registered Master Builders and Certified Builders associations both recommend progress-based payment schedules.

What should a building quote include?

A detailed quote should list the scope of work, labour costs, materials and specifications, provisional sums for unknowns, consent fees, project timeline, payment schedule, and any exclusions. For residential work over $30,000, a written contract is legally required under the Building Act 2004.

Hiring a Builder Checklist — What to Check Before You Hire | Call A Tradie NZ

Hiring a builder is one of the biggest decisions you will make as a homeowner. Whether it is a new build, renovation, or structural repair, the wrong choice can cost tens of thousands of dollars and years of stress. This checklist helps you vet builders thoroughly before signing a contract.

Licensing & Qualifications

4 items

Verify LBP registration on building.govt.nz

Under the Building Act 2004, restricted building work (structural, weathertightness, fire safety) must be done or supervised by a Licensed Building Practitioner. Search the public register at building.govt.nz to confirm their licence class and status.

Check their LBP licence class covers your project type

LBP licences have specific classes — carpentry, site management, design, etc. Make sure their class matches the work you need. Site 2 covers residential projects up to 3 storeys.

Ask about relevant trade qualifications or apprenticeship

A National Certificate in Carpentry (Level 4) or equivalent shows formal training. Many experienced builders also hold Site Safe certification.

Confirm they hold a current Site Safe passport

Site Safe certification shows the builder takes health and safety seriously. This is especially important for larger projects with multiple workers on site.

Insurance & Legal

5 items

Request proof of public liability insurance

Public liability insurance covers damage to your property or injuries to third parties. Most reputable builders carry at least $1 million in cover. Ask for the certificate of currency.

Confirm they have contract works insurance

Contract works insurance covers the building work itself against damage during construction (fire, storm, vandalism). Check whether you or the builder provides this cover.

Check they have a written health and safety plan

Under the Health and Safety at Work Act 2015, builders must manage risks on site. Ask to see their site-specific safety plan before work starts.

Ensure they will handle building consent applications

Your builder should manage or assist with the building consent process. Ask whether consent fees are included in their quote or charged separately.

Discuss warranty and defect liability period

Standard building contracts include a defect liability period (usually 12 months). The Building Act also provides a 10-year long-stop for defective building work.

Quotes & Contracts

4 items

Get at least three detailed written quotes

Quotes should break down labour, materials, margins, and provisional sums. For residential work over $30,000, the Building Act requires a written contract.

Check the quote includes a detailed scope of work

A vague quote is a red flag. The scope should detail exactly what is included, what is excluded, and how variations will be priced.

Confirm the payment schedule aligns with progress milestones

Never pay large sums upfront. Standard payment schedules tie payments to completed stages — foundations, framing, lock-up, fit-out, completion.

Review the contract for dispute resolution clauses

A good contract includes a clear process for resolving disputes — usually mediation first, then adjudication. Avoid contracts that skip straight to litigation.

References & Track Record

4 items

Ask for at least three references from recent projects

Contact past clients directly. Ask about quality of work, communication, timeline adherence, and how the builder handled unexpected issues.

Visit a current or recently completed project if possible

Seeing their work in person tells you more than any photo. Look at the quality of finishing, tidiness of the site, and attention to detail.

Read online reviews on Call A Tradie and Google

Check multiple review platforms for a balanced view. A few negative reviews among many positives is normal — look at how the builder responded to complaints.

Confirm they have experience with your type of project

A builder who specialises in new builds may not be the best choice for a heritage villa renovation. Match their expertise to your project.

Red Flags to Watch For

No LBP licence or refuses to share their registration number
Asks for a large upfront deposit (more than 10% of the total)
No written contract or quote — only verbal agreements
Cannot provide references or examples of past work
No public liability or contract works insurance
Significantly cheaper than all other quotes with no explanation
Pressures you to sign immediately or offers a limited-time discount
Unwilling to discuss the building consent process
No fixed business address or professional email

Builders Hiring FAQ

If your project involves restricted building work — structural changes, weathertightness (roofing, cladding, windows), or fire safety systems — it must be carried out or supervised by a Licensed Building Practitioner under the Building Act 2004. Minor cosmetic work like painting or shelving does not require an LBP.