Receiving a builder's invoice that doesn't match what you expected can be stressful, but in New Zealand there are well-established processes to help you resolve the dispute fairly. Whether it's a billing error, unexpected charges, or a disagreement over completed work, you have real options — and knowing the right steps can save you time, money, and frustration.
Start With Your Contract and Records
Before doing anything else, pull out your written contract (or any written quotes, emails, and variations you agreed to) and compare them carefully against the invoice. Key things to check:
- Does the invoice match the scope of work in the contract?
- Were any variations (changes to the original scope) properly authorised in writing?
- Are the quantities, materials, and labour hours consistent with what was agreed?
- Are there any charges for work you believe wasn't completed or wasn't up to standard?
Keep a clear paper trail — photos of the work, dated emails, text messages, and any site notes are all valuable evidence.
Raise the Issue Directly With the Builder First
In most cases, the fastest resolution comes from a calm, direct conversation. Contact your builder in writing (email is best, so you have a record) and:
- Clearly identify the specific line items you dispute.
- Explain why you believe each item is incorrect, referencing your contract or agreed variations.
- Ask for a written response within a reasonable timeframe (7–14 days is fair).
Many invoice disputes are genuine misunderstandings that can be sorted out at this stage. Keep the tone professional — you want a resolution, not an argument.
Understand the Construction Contracts Act 2002
If direct negotiation doesn't resolve things, New Zealand's Construction Contracts Act 2002 (CCA) gives you important rights. This law governs payment disputes on construction projects and sets out a formal process:
- A payment claim is a formal invoice issued under the CCA.
- You have the right to issue a payment schedule (sometimes called a payment response) disputing all or part of the claim, stating the amount you intend to pay and why.
- There are strict timeframes — typically you must respond within the period specified in your contract, or within 20 working days if no period is stated. Missing this deadline can affect your rights, so act promptly.
If you receive a formal payment claim, it's worth getting legal advice quickly. A construction lawyer or Licensed Building Practitioner familiar with the CCA can help you respond correctly.
Adjudication: The Formal Dispute Process
If you and the builder can't agree, adjudication under the CCA is the main formal dispute resolution pathway for construction payment disputes in NZ. It's faster and cheaper than going to court.
- Either party can apply for adjudication.
- An independent adjudicator reviews the evidence and makes a binding decision.
- The process is designed to be resolved within weeks, not months.
- Adjudicators are appointed through approved nominating bodies — MBIE Building Performance has information on how this works.
For smaller disputes (up to the Disputes Tribunal's current jurisdictional limit — check the Disputes Tribunal website for the current threshold), the Disputes Tribunal (sometimes called the Small Claims Tribunal) can be a simpler and lower-cost option. You don't need a lawyer, and hearings are informal.
Workmanship Disputes vs. Invoice Disputes
It's important to distinguish between two types of disagreements:
| Type | Description | Pathway |
|---|---|---|
| Invoice dispute | Charges don't match agreed contract or variations | CCA payment schedule, adjudication, Disputes Tribunal |
| Workmanship dispute | Work is defective or incomplete | Negotiation, adjudication, Disputes Tribunal, or court |
If you're withholding payment because the work is defective, document the defects thoroughly with photos and, if needed, get an independent assessment from another qualified builder or an independent assessor.
Protect Yourself Going Forward
Whether or not your current dispute is resolved quickly, these habits will protect you on future building projects:
- Always get a written, itemised contract before work starts.
- Agree on a process for variations in writing before any extra work begins.
- Keep copies of all communications.
- Check that your builder holds a current Licensed Building Practitioner (LBP) licence for the work being done — restricted building work must be carried out and supervised by an LBP.
- Consider using a progress payment schedule tied to completed milestones rather than paying large lump sums upfront.
When to Call a Professional
If the disputed amount is significant, the builder is threatening legal action, or you've received a formal payment claim under the CCA, get professional advice promptly. A construction lawyer can help you respond correctly and protect your position. For general guidance on your rights as a consumer, Consumer NZ is a useful starting point.
If the dispute involves questions about whether the building work meets the NZ Building Code or relevant standards, a qualified building inspector or LBP can provide an independent assessment. You can find qualified local builders and building professionals on tradedirectory.co.nz.
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