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How to Choose a Builder for Your New Home

17 September 20259 min readBy Jarrod Kirkland
How to Choose a Builder for Your New Home

Key Takeaways

  • 1Get recommendations and verify credentials before shortlisting builders.
  • 2Obtain at least three detailed quotes on the same plans for fair comparison.
  • 3Check LBP licences, RMB membership, and references actually exist.
  • 4Fixed-price contracts provide cost certainty for most homeowners.
  • 5Have a lawyer review the contract before signing.
  • 6Trust your instincts if something feels wrong during the selection process.

Your choice of builder affects everything from build quality to whether your project finishes on budget. Here is how to find the right one.

Choosing a builder is one of the most important decisions you will make when building a home. A good builder delivers quality work on time and on budget. A poor choice can mean delays, cost overruns, defects, and in the worst cases, an unfinished project and legal battles.

This guide walks through how to find and select the right builder for your project.

Types of Builders

Understanding the different types of builders helps you search in the right places.

Group home builders (also called volume or franchise builders) construct many homes to standardised designs. Companies like GJ Gardner, Platinum Homes, and Golden Homes offer plans you can customise within limits. They typically offer fixed prices and established processes, but less flexibility than custom builders.

Custom builders work on individual projects, building from architect-designed plans. They offer more flexibility but require more involvement in design and may have less predictable pricing. Some specialise in particular styles or price points.

Registered Master Builders are members of a trade organisation with certain standards and a guarantee scheme. This provides some protection but is not a guarantee of quality.

Licensed Building Practitioners (LBPs) are licensed for specific types of building work. Most building work in New Zealand must be done or supervised by LBPs. This is a legal requirement, not a quality endorsement, but it provides a baseline of qualification.

Starting Your Search

Begin by understanding what you want to build and what you can afford. This helps you target builders who work in your style and price range.

Get recommendations from friends, family, or colleagues who have built recently. First-hand experience is valuable, though remember that building needs vary.

Check industry directories like Registered Master Builders or your local Home Show exhibitors. Drive around new developments and note which builders' signs appear on homes you like.

Ask your architect or designer if you are using one. They often have relationships with builders whose work they know and trust.

What to Look For

Once you have a shortlist, evaluate each builder carefully.

Experience and track record matter. How long have they been building? How many homes have they completed? Have they built in your area (important for understanding local council requirements and conditions)?

Licensing and membership provide baseline assurance. Check they hold appropriate LBP licences. Registered Master Builder membership adds a guarantee scheme.

Financial stability is crucial. A builder who goes bust mid-project leaves you in a nightmare situation. Look for established businesses with apparent stability. Be wary of new entrants or one-person operations on large projects.

Communication style affects your experience. Building takes months. You need a builder who communicates clearly and regularly. How responsive are they during the quoting process? That often indicates how they will be during the build.

References from recent clients give real insight. Ask for contacts and actually call them. Ask about quality, timeliness, communication, and whether they would use the builder again.

Getting Quotes

Obtain detailed quotes from at least three builders. Ensure they are quoting on the same plans and specifications so you can compare fairly.

Fixed-price contracts give you cost certainty. The builder takes the risk of cost increases. Most group builders and many custom builders offer fixed-price options.

Cost-plus contracts mean you pay actual costs plus a margin. This offers flexibility for changes but puts cost risk on you. It suits projects with uncertain scope.

Understand exactly what is included. Land costs, design fees, council fees, landscaping, driveways, and fencing may or may not be in the quote. Ask for a detailed breakdown and clarify inclusions.

Be wary of quotes significantly below others. Building has real costs. A very low quote may indicate cut corners, unrealistic expectations, or a builder who will seek variations later.

Questions to Ask

Before committing, ask builders specific questions.

What is your current workload and when could you start? Builders in demand may have long wait times. Builders with no work might be struggling for a reason.

Who will supervise my project day to day? The person you meet is not always the person managing your build. Meet the site supervisor if possible.

How do you handle variations and changes? Changes during construction are common. Understand the process and how they affect price and timing.

What warranties do you provide? Beyond the statutory guarantees, what does the builder stand behind? Master Builder guarantees provide additional protection.

How do you handle defects after completion? A clear process for addressing snags gives confidence.

Can I visit one of your current sites? Seeing a builder in action tells you a lot. Is the site tidy? Do workers seem competent and professional?

Checking Credentials

Do not just take the builder's word for their credentials.

Verify LBP licences on the Building Performance website. You can search by name and see what licences a person holds.

Check Registered Master Builder membership if claimed. The RMB website lists current members.

Search for disputes or disciplinary history. The Building Practitioners Board publishes disciplinary decisions. Court records may reveal litigation history.

Look for online reviews and complaints. While some complaints are inevitable for any business, patterns of similar problems are concerning.

The Contract

A written contract is essential. Never proceed on a handshake or verbal agreement.

Standard contracts like the Registered Master Builders standard contract or similar provide balanced terms. Heavily customised contracts favouring the builder deserve legal review.

Key elements include detailed description of the work, plans and specifications referenced, total price and payment schedule, start date and anticipated completion, process for variations, warranty provisions, dispute resolution process, and insurance requirements.

Have a lawyer review the contract before signing. The few hundred dollars this costs can save tens of thousands in disputes.

Warning Signs

Certain patterns should make you cautious.

Pressure to sign quickly without time to consider or take advice.

Reluctance to provide references or details of recent projects.

Significantly lower prices than competitors without clear explanation.

Requests for large upfront deposits. Progress payments tied to completed stages are normal. Large deposits before work begins are concerning.

Poor communication or disorganisation during the quoting process.

Negative reviews or patterns of complaints for similar issues.

Making Your Decision

After due diligence, the decision often comes down to confidence and fit. Building is a long relationship. You need to trust your builder and feel comfortable communicating with them.

Price matters, but the cheapest quote is not always the best value. Quality, reliability, and a smooth process have value too.

If something feels wrong, trust your instincts. Walking away from a builder who raises concerns is easier before signing than after construction begins.

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Frequently Asked Questions

How do I find a good builder in NZ?

Get recommendations from people who have built recently, check industry directories like Registered Master Builders, drive around new developments, and ask architects or designers. Verify credentials and call references.

Should I use a Registered Master Builder?

RMB membership provides access to a guarantee scheme that protects you if the builder goes bust or fails to fix defects. This is valuable protection, though membership alone does not guarantee quality.

How many quotes should I get?

At least three quotes on the same plans and specifications. This allows fair comparison and helps identify outliers. Be wary of quotes significantly below others.

What is the difference between fixed price and cost plus contracts?

Fixed price means the builder takes the risk of cost increases. Cost plus means you pay actual costs plus a margin, taking the cost risk yourself but gaining flexibility. Most homeowners prefer fixed price for certainty.

What are warning signs of a bad builder?

Red flags include pressure to sign quickly, reluctance to provide references, significantly low prices, large upfront deposits, poor communication, and patterns of negative reviews.

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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