A written quote from a builder is more than just a price — it's a foundational document that protects you as a homeowner and sets clear expectations for the job. While there is no single law that prescribes every line item a quote must contain, consumer protection principles, building regulations, and good trade practice all point to what a thorough quote should include. Here's what to look for before you sign anything.
Why a Written Quote Matters
A verbal agreement is hard to enforce if something goes wrong. A written quote (or estimate) creates a paper trail and forms the basis of your contract with the builder. If the work involves restricted building work — such as structural alterations, additions, or work on weathertight envelopes — the builder must be a Licensed Building Practitioner (LBP), and this should be reflected in the quote documentation. Always ask to see a builder's LBP licence number before engaging them.
Essential Information a Builder's Quote Should Include
1. Builder's Details
- Full legal name of the business or sole trader
- Physical and postal address
- Phone number and email
- LBP licence number and licence class (e.g., Carpentry, Design, Site)
- GST registration number (if GST-registered)
- Any relevant trade association memberships
2. Your Details and the Project Address
The quote should clearly identify you as the client and state the full address where the work will be carried out.
3. Detailed Scope of Work
This is the most critical section. A vague scope leads to disputes. Look for:
- A clear description of every task to be completed
- Specific materials, brands, or product specifications (e.g., framing timber grade, cladding type)
- What is excluded from the quote — this is just as important as what's included
- Any work that will be subcontracted, and to whom
4. Pricing Breakdown
A good quote will itemise costs rather than just give a lump sum. This might include:
| Item | Detail |
|---|---|
| Labour | Hours or fixed rate per task |
| Materials | Itemised list with quantities |
| Subcontractors | Electrician, plumber, etc. |
| Consent fees | If applicable |
| GST | Clearly stated (15%) |
| Contingency | If included, explain why |
Be cautious of quotes that bundle everything into one number with no breakdown — it makes it very difficult to compare quotes or query costs later.
5. Fixed Price vs. Estimate
Make sure the quote clearly states whether it is a fixed-price quote (the price won't change unless the scope changes) or an estimate (the final cost may vary). These are legally different. If it's an estimate, ask how variations will be priced and approved.
6. Variations Process
The quote should explain how variations (changes to the original scope) will be handled. Ideally, any variation should require written approval from you before work proceeds and should include the additional cost.
7. Payment Terms
- Deposit amount (if any — be wary of large upfront deposits)
- Progress payment schedule tied to milestones
- Final payment conditions
- Accepted payment methods
Under the Construction Contracts Act, builders on residential projects have specific rights around payment claims, so understanding the payment schedule upfront is important.
8. Timeframes
- Estimated start date
- Estimated completion date or project duration
- Key milestones if it's a larger project
Note that weather, consent delays, and material supply can all affect timelines — a good builder will flag this rather than promise unrealistic deadlines.
9. Building Consent Responsibilities
If the work requires a building consent, the quote should state:
- Who is responsible for lodging the consent application (usually the builder, but confirm this)
- Whether consent fees are included in the quote or additional
- That the work will comply with the NZ Building Code
Not all building work requires consent — some falls under Schedule 1 exemptions — but always confirm with your local council rather than assuming.
10. Warranties and Defects
- Builder's workmanship warranty period (commonly 12 months, but this varies)
- Manufacturer warranties on materials
- How defects identified after completion will be addressed
Under the Building Act, homeowners have rights around defective building work, so it's worth understanding what recourse you have.
11. Health and Safety
For larger projects, the builder should reference their obligations under WorkSafe NZ guidelines, particularly around site safety and whether you as the homeowner have any responsibilities as a Person Conducting a Business or Undertaking (PCBU).
Comparing Multiple Quotes
Always get at least two or three quotes for significant building work. When comparing, make sure each quote covers the same scope — a cheaper quote may simply exclude items the others have included. Ask each builder to clarify anything that seems vague.
Resources like BRANZ provide useful guidance on building standards and good practice that can help you ask the right questions.
When to Call a Professional
If a quote seems incomplete, unusually cheap, or the builder is reluctant to put things in writing, treat that as a red flag. For any restricted building work — structural, weathertightness, or design work — you must use a licensed professional. Check a builder's LBP status at lbp.govt.nz before signing anything. You can find qualified, reputable local builders on tradedirectory.co.nz.
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