Dealing with Disputes With Tradespeople in New Zealand

Dealing with Disputes With Tradespeople in New Zealand

Hiring a tradesperson for home renovations, repairs, or maintenance can be stressful — especially when things go wrong. Whether it’s shoddy workmanship, unexpected costs, or unfinished jobs, disputes with tradespeople are unfortunately common in New Zealand. This guide walks you through the practical steps to resolve these issues without losing your cool — or your money.

Why disputes happen (and how to avoid them)

Most disputes arise from poor communication or unclear expectations. Common problems include:

• Work that doesn’t meet the agreed standard
• Unexpected price increases or extra charges
• Delays or incomplete work
• Damage to your property during the job

The best way to avoid a dispute is to get everything in writing before work starts. A written contract protects both you and the tradesperson.

Step 1: Check your contract or agreement

Before you escalate, review what you agreed to. In New Zealand, all tradespeople must provide a written contract for work over $30,000 under the Building Act 2004. For smaller jobs, a simple quote or email exchange can still form a binding agreement.

Look for:

• The scope of work (exactly what was promised)
• The total price or hourly rate
• Payment terms and schedule
• Start and completion dates
• Any warranties or guarantees

Tip: If you don’t have a written contract, check your bank records, text messages, or emails — these can serve as evidence of what was agreed.

Step 2: Talk to the tradesperson first

Most disputes can be resolved with a calm, direct conversation. Contact the tradesperson and explain the issue clearly. Stick to facts — what was agreed, what went wrong, and what you want (a fix, a refund, or a discount).

Keep a record of all communication, including dates, times, and what was said. If you speak by phone, follow up with a brief email summarising the conversation.

Tip: Use a neutral tone. Accusations often make things worse. Try: “I noticed the plastering isn’t smooth in the lounge — can we talk about how to fix this?”

Step 3: Put your complaint in writing

If a conversation doesn’t resolve things, send a formal written complaint. Include:

• Your name and contact details
• The tradesperson’s name and business name
• A clear description of the problem
• What you want (e.g., a repair, refund, or partial refund)
• A reasonable deadline for a response (usually 7–14 days)

Send it by email or registered post so you have proof of delivery. Keep a copy for your records.

Step 4: Get an independent opinion

If you disagree about whether the work is substandard, consider getting a second opinion from another qualified tradesperson. They can give you a written assessment of the problem and an estimate of what it would cost to fix.

This independent report can be powerful evidence if you need to escalate the dispute further.

Step 5: Use a dispute resolution service

If direct communication fails, several free or low-cost options are available in New Zealand:

Tip: The Disputes Tribunal is a good option for claims under $30,000. You don’t need a lawyer, and hearings are less formal than court.

Step 6: Consider the Disputes Tribunal

The Disputes Tribunal can order the tradesperson to fix the work, pay compensation, or refund your money. The process involves:

1. Filing a claim online or at your local District Court
2. Paying the filing fee (based on the claim amount)
3. Attending a mediation session (optional but recommended)
4. Having a hearing if mediation doesn’t work

The Tribunal’s decision is legally binding. However, it can only award monetary compensation — it cannot order a tradesperson to complete unfinished work.

Step 7: Know your rights under the Consumer Guarantees Act

The Consumer Guarantees Act applies to most tradespeople in New Zealand. It says services must be:

• Carried out with reasonable care and skill
• Fit for purpose
• Completed within a reasonable time (unless agreed otherwise)

If the work fails these standards, you can ask for it to be fixed or for a refund. This Act applies even if there’s no written contract.

Tip: The Act does not apply if you’re hiring a tradesperson for your business — only for personal or household use.

Key concepts to understand

Liability: Tradespeople are responsible for their work. If they cause damage to your property, they must fix it or pay for repairs.

Warranties: Many trades offer a warranty on workmanship (often 1–5 years). Check if yours does — it can save you money if problems appear later.

Insurance: Tradespeople should have public liability insurance. Ask to see their certificate before work starts. If they don’t have insurance, you may struggle to recover costs if something goes wrong.

Tips to prevent disputes in the first place

• Get multiple quotes — compare prices and scope of work
• Ask for references — check past work and reviews
• Use a written contract — even for small jobs
• Pay in stages — never pay the full amount upfront
• Take photos — document the work before, during, and after
• Check qualifications — use the LBP register for builders, or the Electrical Workers Register for electricians

When to get legal advice

If the dispute involves more than $30,000, or if it’s complex (e.g., structural issues, defective materials), consider speaking to a lawyer who specialises in construction law. Community Law Centres offer free or low-cost advice if you’re on a tight budget.

Our verdict

Disputes with tradespeople are stressful, but most can be resolved without going to court. The key is to act quickly, keep good records, and use the free dispute resolution services available in New Zealand. The Disputes Tribunal is a practical option for most home renovation disputes under $30,000 — it’s affordable and doesn’t require a lawyer.

Remember: prevention is better than cure. A clear written contract and open communication from the start will save you time, money, and frustration.