The dream of a new kitchen, an extension, or a renovated bathroom is exciting. The reality of a cowboy builder — incomplete work, disappeared contractors, and empty bank accounts — is devastating. New Zealand’s building sector has its share of operators who lack the qualifications, skills, or integrity to deliver on their promises, and homeowners who haven’t done their homework are their primary targets.
Here’s how to protect yourself.
Red Flags Before You Sign Anything
Cowboy builders tend to have recognisable characteristics. Watch out for:
- Nothing in writing. A legitimate contractor will provide a written contract that specifies the scope of work, the price, the payment schedule, and the timeline. Anyone who is uncomfortable putting things in writing is giving you important information.
- Suspiciously low quotes. If one quote is dramatically cheaper than the others, it’s worth asking why. Common explanations include planning to use cheaper materials, intending to charge for extras later, or simply not understanding the scope of the work.
- Pressure for large upfront deposits. Legitimate builders don’t need a large deposit before work starts. Progress payments tied to completion milestones are the standard approach for anything beyond small jobs.
- No verifiable track record. Ask for references from previous clients and actually contact them. Look for the contractor’s Licensed Building Practitioner (LBP) licence on the MBIE register.
- Cash-only insistence. This may indicate unregistered business activity and almost certainly means no paper trail if things go wrong.
Verifying an LBP
In New Zealand, certain restricted building work must be carried out by or under the supervision of a Licensed Building Practitioner. The LBP register is publicly searchable at lbp.govt.nz — you can verify whether someone holds a current licence and what work they are licensed to do. An unlicensed person doing restricted building work cannot legally issue the Record of Work that is required for the building consent process.
If Things Go Wrong
If a builder has taken your money and left the job incomplete or done substandard work, your options include: taking the matter to the Disputes Tribunal (for amounts up to $30,000), lodging a complaint with the Building Practitioners Board if the builder is an LBP, or pursuing civil litigation through the courts for larger amounts.
The better outcome is to avoid getting into this position in the first place — check credentials before signing, have a proper contract, and don’t hand over money ahead of completed work.