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Choosing the Right Builder: What to Look For in NZ

25 September 20256 min readBy Jarrod Kirkland
Choosing the Right Builder: What to Look For in NZ

Key Takeaways

  • 1Verify LBP licence and industry body membership before engaging any builder.
  • 2Contact references and visit completed projects to assess quality firsthand.
  • 3Fixed price contracts provide certainty but understand what is excluded.
  • 4Ensure the contract specifies guarantee coverage like Master Build Guarantee.
  • 5Document all communication and address concerns early before they escalate.

How to find and evaluate builders for your new home project. Learn the key questions to ask, warning signs to watch for, and how to protect yourself.

Choosing the right builder is one of the most consequential decisions in your construction project. A good builder delivers quality work on time and maintains clear communication throughout. A poor choice leads to stress, delays, cost overruns, and potentially serious defects.

The decision deserves careful research and evaluation. Taking shortcuts in builder selection often proves more expensive than the time invested in doing it properly.

Types of Builders

Understanding the different types of builders helps narrow your search. Group home builders offer standard designs with fixed prices and established processes. They provide certainty but limited customisation. Companies like GJ Gardner, Signature Homes, and Jennian operate this model.

Independent builders range from small operators to substantial firms. They typically offer more flexibility in design and specifications. Quality and reliability vary considerably, making thorough evaluation essential.

Architect-led design and build arrangements suit complex or unusual projects. Architects manage the design and often the construction contract. This approach costs more but produces distinctive results.

Essential Qualifications

Licensed Building Practitioners are legally required for certain building work in New Zealand. Verify your builder holds the appropriate LBP licence for the work they will undertake. The LBP register is publicly searchable on the MBIE website.

Membership in industry bodies like Master Builders or Certified Builders provides additional assurance. These organisations require standards for membership and offer guarantee schemes. Master Build Guarantee and Certified Builders Association guarantees protect against defects and builder failure.

Appropriate insurance is non-negotiable. Builders should carry public liability insurance, contract works insurance during construction, and professional indemnity insurance. Request certificates of currency before signing contracts.

Evaluating Track Record

Request references from recent clients and actually contact them. Ask about communication quality, timeline adherence, problem resolution, and overall satisfaction. Visit completed projects if possible to assess quality firsthand.

Check online reviews with appropriate scepticism. A few negative reviews among many positive ones may reflect isolated issues. Consistent complaints about the same problems suggest systemic issues.

Investigate any complaints or legal actions. The Building Practitioners Board publishes disciplinary decisions. Court records may reveal disputes with previous clients. This research takes time but reveals important information.

Getting Comparable Quotes

Requesting quotes from multiple builders enables comparison, but only if you are comparing like with like. Provide identical specifications to each builder to ensure their quotes cover the same scope.

Low quotes deserve scrutiny. Builders sometimes quote low to win work then recover margin through variations. Ask how their price compares to similar projects they have completed.

Fixed price contracts provide certainty, but understand what falls outside the fixed price. Allowances for selections like tiles, carpet, and appliances are often inadequate for what clients actually want. Site-specific costs may be excluded.

Warning Signs

Reluctance to provide references or examples of previous work should raise concerns. Established builders have satisfied clients willing to speak positively about their experience.

Requests for large upfront payments beyond standard deposit requirements may indicate cash flow problems. Standard practice is payment at defined stages matching completed work.

Poor communication during the quoting process often predicts poor communication during construction. If responses are slow and unclear before you sign, they are unlikely to improve after.

Unwillingness to sign a proper written contract suggests the builder prefers ambiguity. Professional builders use comprehensive contracts that protect both parties.

The Contract

Written contracts are essential for any substantial building work. The contract should clearly specify the work included, the price, the payment schedule, the timeline, and dispute resolution processes.

New Zealand has standard building contracts developed by industry bodies. These contracts balance the interests of builders and clients and have been tested through disputes. Using modified standard contracts provides better protection than bespoke documents.

Ensure the contract includes your builder's guarantee scheme. Master Build Guarantee or Certified Builders guarantee should be specified, with you named as the beneficiary.

Managing the Relationship

Regular communication throughout the build prevents problems from escalating. Weekly progress updates should be the minimum. Site meetings at key stages allow you to see work in progress and raise concerns.

Document everything. Keep copies of all correspondence, variations, and instructions. Photograph work at key stages. This documentation protects you if disputes arise.

Address concerns early. Small issues identified and resolved during construction are far cheaper to fix than defects discovered after completion. Do not accept assurances that problems will be addressed later.

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Frequently Asked Questions

How do I check if a builder is licensed in NZ?

Search the Licensed Building Practitioners register on the MBIE website. All builders doing restricted building work must hold an appropriate LBP licence.

What is Master Build Guarantee?

Master Build Guarantee is a warranty scheme that protects homeowners against defects and builder failure. It covers remediation costs if your builder goes into liquidation or fails to fix defects.

How many quotes should I get for a new build?

Three to five quotes provide good comparison without becoming unmanageable. Ensure you provide identical specifications to each builder for meaningful comparison.

What are the warning signs of a bad builder?

Reluctance to provide references, requests for large upfront payments, poor communication, and unwillingness to use proper written contracts all suggest potential problems.

Disclaimer

The information on this website is for general guidance only and does not constitute financial or investment advice. Always do your own research and seek personalised advice from a qualified financial adviser or mortgage adviser before making financial decisions. All investments carry risk and past performance is not indicative of future results.

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