7 Essential Questions to Ask Before Hiring a Builder in NZ

Hiring a builder in New Zealand? Here’s what you need to know upfront:

1. Check Licensing and Insurance: Ensure the builder is Licensed Building Practitioner (LBP) certified and has adequate insurance like public liability and contract works.
2. Review Past Work: Look at portfolios and client references to confirm quality and expertise in similar projects.
3. Match Experience to Your Project: Verify their experience aligns with your project type – new builds, renovations, heritage, or commercial.
4. Understand Contracts and Payments: Use a written contract for projects over $30,000 and follow a clear, milestone-based payment plan.
5. Ensure Building Code Compliance: Discuss permits, inspections, and compliance processes with your builder.
6. Set Clear Timelines and Communication: Agree on a detailed project schedule and regular progress updates.
7. Know Warranty Terms: Confirm coverage under NZ’s 10-year implied warranty and the 12-month defect repair period.

Quick Tip: Always verify credentials, speak to past clients, and have contracts reviewed by a legal expert before signing. These steps can save you from costly mistakes.

Starting a Build Is Harder Than You Think – Here’s Why!

1. Licensing and Insurance Requirements

Before starting any project, it’s essential to confirm that your builder has the proper licensing and insurance. The first step? Checking for LBP certification.

What Is LBP Certification?

The Licensed Building Practitioner (LBP) certification is required for builders handling Restricted Building Work (RBW). This certification ensures that the builder meets current standards and has the necessary skills for the job.

"The New Zealand Government licence building practitioners so that the New Zealand public can have confidence that LBPs working on their homes and buildings are competent, and that homes and buildings are designed and built right." – Licensed Building Practitioners

Hiring an unlicensed builder can result in:

• Fines reaching up to $50,000 for unauthorized work
• Safety hazards
• Voided building warranties
• Issues with compliance when dealing with local authorities

How to Verify Builder Credentials

Take these steps to confirm your builder’s qualifications:

• Check the LBP Register
  The public LBP register lets you verify:
  • Current licensing status
  • Licensing class
  • Disciplinary history over the past three years
  • Company affiliations
  • Relevant qualifications
• Review Insurance Coverage
  Insurance protects both you and the builder during the project. Here’s a quick breakdown:

  Insurance Type	Covers	When Needed
  Contract Works	Damage to work, theft, vandalism, natural disasters	For all full contracts
  Public Liability	Third-party property damage and injuries	For all projects
  Professional Indemnity	Design and advisory services	If design services are involved

Always document insurance details in your contract. As Building Performance highlights:

"Find out what insurance cover your builder has, and let your insurance company know as they can suggest any additional cover." – Building Performance

Keep in mind, insurance requirements depend on your contract type. For labor-only contracts, you’ll need to arrange insurance yourself. On the other hand, full contracts usually include coverage provided by the builder.

Once you’ve confirmed licensing and insurance, the next step is to evaluate the builder’s past projects and client reviews to ensure their expertise.

2. Past Work and Client References

After verifying licensing and insurance, take a closer look at your builder’s portfolio and references to assess their reliability.

Tips for Reviewing a Builder’s Portfolio

Here are key areas to examine:

Pay attention to projects similar to yours. Request detailed photos that showcase foundations, structures, finishes, and even before-and-after comparisons.

After evaluating their portfolio, take it a step further by speaking directly with their previous clients to verify performance.

How to Check References

When contacting past clients, ask specific questions about the builder’s project management, work quality, and professionalism.

• Project Management
  • Were deadlines met?
  • Was the budget maintained?
  • How were issues handled?
  • Was communication clear and timely?
• Work Quality
  • Did they pay attention to detail?
  • Were quality materials used?
  • How well did they manage subcontractors?
  • Was post-completion service satisfactory?
• Professional Conduct
  • Was the site kept clean?
  • How was noise managed?
  • Were neighbors considered?
  • Was the staff professional?

"When a contractor is hesitant to provide information in writing, or engage in proper digital communication, this is a definite red flag that he or she doesn’t want a paper trail of evidence, or isn’t legally licensed to do the work requested." – Mike Jackson, Builder and HGTV Host

Be on the lookout for warning signs:

"If you don’t see any reviews at all about a company, chances are they have dissolved previous companies and reestablished under a new name." – Egypt Sherrod, Real Estate Broker and HGTV Host

These steps help ensure your investment is in capable hands. Keep detailed notes from reference calls and portfolio reviews to guide your final decision.

3. Project-Specific Experience

Matching Skills to Your Project

When choosing a builder, focus on their experience with projects like yours. This helps you determine if they have the right skills for your needs. For example, someone who specializes in modern apartments might not be the best choice for restoring a historic building.

Here are some examples to guide your evaluation:

Ask for examples of how they’ve handled challenges in similar projects. A skilled builder should show:

• Technical Knowledge: Familiarity with local building materials and conditions
• Problem-Solving Skills: Ability to handle unexpected issues effectively
• Quality Control: Consistent attention to detail across projects
• Modern Techniques: Combining new approaches with proven methods

A strong portfolio of comparable, well-executed projects is a key indicator of their expertise. Up next: how to spot warning signs of insufficient experience.

Warning Signs to Watch For

Be cautious of these red flags, which may indicate a builder lacks the experience you need:

Pay close attention to how they discuss the technical aspects of your project. A knowledgeable builder will:

• Clearly explain building codes relevant to your project
• Recommend materials suited to your local climate
• Identify potential challenges early on
• Share solutions based on their past successes

These discussions can reveal whether they’re prepared to handle your project with confidence and expertise.

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4. Contract and Payment Terms

After verifying credentials and confirming expertise, it’s essential to establish a clear and well-documented contract.

NZ Construction Contract Types

In New Zealand, any residential building work costing over $30,000 (including GST) legally requires a written contract. Even for smaller jobs, having a formal agreement is a smart move to protect everyone involved.

Your contract should cover key details like:

• The project scope
• Timeline, including how delays will be handled
• Roles and responsibilities, such as obtaining necessary consents
• Insurance coverage
• Warranty terms

Additionally, ensure it includes:

• Names and contact details of all parties
• Site-specific information
• Consent and supervision responsibilities
• Procedures for handling changes (variations)
• Methods for resolving disputes

Once these terms are outlined, a structured payment plan can help safeguard your financial investment.

Payment Structure Guide

The Construction Contracts Act 2002 (updated in 2015) supports milestone-based payments, giving homeowners the option to submit a payment schedule.

A good payment schedule should align with project milestones and include:

• Payment amounts and due dates
• Definitions of milestones
• How payments are calculated
• Steps to follow if issues arise

For added security:

• Tie payments to specific milestones
• Request detailed, itemized invoices
• Keep thorough transaction records
• Have the contract reviewed by a legal professional

Payment claims should clearly state:

• The contract reference
• Description of the work completed
• Amount being claimed
• Payment due date
• How the amount was calculated

In case of disputes, respond quickly with a payment schedule to avoid being held responsible for the full claimed amount.

5. Building Code Compliance

NZ Building Code Basics

In New Zealand, all construction work must meet the standards outlined in the Building Code. Builders are required to show how their work complies with these standards.

Here’s what you should discuss with your builder:

• Code Compliance Methods: Your builder should explain how they ensure compliance using:
  • Acceptable Solutions
  • Verification Methods
  • Alternative solutions
• Documentation Process: Builders must keep detailed records, including:
  • Building consent applications
  • Inspection schedules
  • Compliance certificates
  • Any changes to approved plans

"All building work in New Zealand must meet the performance standards of the Building Code, even if it doesn’t require a consent." – Building Performance

Make sure you understand who handles permits and inspections. This will help ensure every step of the process is properly documented and certified.

Permit and Inspection Checklist

Before signing any contracts, clarify who is responsible for permits and inspections. While building owners are legally required to apply for consents, builders should assist throughout the process.

Key Questions to Ask Your Builder:

1. How do you stay updated on changes to the Building Code?
2. What’s your process for managing council inspections?
3. How do you document compliance during the project?
4. What’s your experience working with the local Building Consent Authority?

Also, ask about their approach to:

• Keeping up with code updates
• Organizing compliance records
• Coordinating with council inspectors
• Resolving compliance issues during construction

Your builder should actively work with the local council, ensuring all documentation is submitted and inspections are completed to meet final compliance standards.

6. Timeline and Communication Plans

Project Timeline Planning

Work with your builder to lock in a clear schedule, avoiding delays and unexpected costs. Request a detailed timeline that covers key milestones, dependencies, and any potential challenges.

A solid project timeline should outline:

• Site preparation and foundation work
• Major construction phases
• Delivery schedules for materials
• Inspection dates
• Weather-related delays
• Target completion dates

When discussing the timeline, focus on these points:

1. How the builder sets realistic deadlines for each phase
2. How crew schedules and material deliveries are managed
3. What backup plans are in place for weather or supply chain issues
4. How the different phases of construction are coordinated

Additionally, make sure your builder has a plan for keeping you informed about progress throughout the project.

Progress Updates and Reports

Many builders now use client portals to provide real-time updates. For instance, Buildertrend highlights:

"We love the Client Portal because it provides our clients with real-time updates and visibility into their projects."

Daily logs can include crucial details such as:

• Number of workers on-site
• Tasks completed
• Weather-related delays
• Material deliveries
• Safety inspections

Digital tools are transforming how projects are tracked. For example, Skanska‘s team cut photo documentation time in half by using advanced tracking solutions.

"We used to capture pictures, with HoloBuilder we capture progress." – Ashley Dawson, BIM Coordinator, Major Projects

To ensure smooth communication, ask your builder:

• Who will be your main contact?
• What tools or platforms will they use for updates?
• How often will you hear about progress?
• How will delays be communicated and resolved?

These strategies will help build a strong foundation for managing warranty and post-construction services.

7. Warranty and Post-Construction Service

NZ Building Warranty Types

Under the Building Act, all residential building work is automatically covered by an implied warranty. This ensures that the work is completed to a high standard, materials are new and appropriate, and the project complies with the Building Act and Code. Additionally, the home must be suitable for living in and the work must be carried out with care and skill.

This warranty includes a 10-year implied coverage period and a 12-month defect repair period.

While these legal protections are in place, it’s essential to carefully review the specific warranty terms outlined in your contract.

Warranty Terms to Check

Pay attention to the following key details to ensure you’re fully protected:

• Defect Notification: Your contract should clearly state how to report defects, expected response times, repair obligations, and steps for resolving disputes.
• Documentation: Keep written proof of the project’s completion date. Also, retain all building documents, contracts, and warranty certificates.
• Coverage Details: Verify that the contract requires work to follow approved plans, use new and compliant materials, and ensure the home is fit for living.

If your contractor breaches the warranty and doesn’t address issues within a reasonable time, you can hire another professional to fix the problems and claim the costs back.

"The Consumer Guarantees Act also provides additional protection for building services by requiring tradespeople to work with reasonable skill and rectify any deficient work at no extra cost. Along with the Fair Trading Act, these regulations help ensure comprehensive consumer protection during and after construction".

Conclusion

Hiring the right builder is crucial for ensuring your project runs smoothly and your investment in New Zealand is secure. By asking the right questions, you can set expectations early and reduce potential risks.

While licenses and portfolios are important, don’t overlook the importance of solid credentials and valid insurance. A builder’s history of completed projects and happy clients is often the best way to gauge their skill and professionalism.

Clear, detailed contracts are another key element. They should cover payment terms, timelines, and warranty details to protect both you and the builder, laying the groundwork for a successful project.

"Builder Connect is committed to revolutionizing New Zealand’s home improvement and construction industry by creating an exclusive directory of only the most reputable and thoroughly vetted service providers." – Builder Connect

Before finalizing your choice, take these steps:

• Document Review: Check all credentials and certifications.
• Reference Verification: Speak with past clients to confirm the builder’s performance.
• Contract Analysis: Have a legal expert review the terms and conditions.

The Lead Guy

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