A well-written carpentry contract is your best protection when undertaking any building or renovation work in New Zealand. Whether you're adding a deck, fitting a new kitchen, or framing an extension, having everything in writing before work begins saves disputes, protects your money, and ensures the job meets the NZ Building Code. Here's what to look for — and what to insist on.
Why a Written Contract Matters
Verbal agreements are legally enforceable in New Zealand, but they're very hard to prove when things go wrong. A written contract sets clear expectations for both parties and is strongly recommended by MBIE Building Performance for any significant building work. Even for smaller jobs, a simple written agreement is good practice.
1. Full Details of Both Parties
The contract should clearly state:
- Your full name and address as the homeowner (client)
- The contractor's full legal name, trading name, and contact details
- Their Licensed Building Practitioner (LBP) licence number, if the work is restricted building work (more on this below)
- Their GST number and company or sole trader registration details
You can verify a tradesperson's LBP status at any time through the Licensed Building Practitioners register.
2. Detailed Scope of Work
This is the heart of the contract. A vague scope leads to disputes. The scope should describe:
- Exactly what work will be done — framing, cladding, decking, joinery fitting, etc.
- Materials to be used, including brand, grade, and specification where relevant (e.g. H3.2 treated timber for exterior framing, or specific sheet products)
- What is NOT included, so there are no assumptions
- Reference to any plans or drawings attached as appendices
- Whether the work requires a building consent and who is responsible for obtaining it
For structural or weathertight work, the NZ Building Code sets minimum standards — your carpenter should be working to these as a baseline.
3. Consent and Compliance Responsibilities
Many carpentry jobs require a building consent from your local council. Schedule 1 of the Building Act lists exemptions for minor work, but always confirm with your council whether consent is needed — don't rely solely on the contractor's word.
The contract should state:
- Who applies for and pays for the building consent
- Who is responsible for arranging council inspections
- That the work will comply with the NZ Building Code and relevant standards (such as NZS 3604 for timber-framed buildings)
- That a Code Compliance Certificate (CCC) will be obtained on completion where required
Restricted building work — including structural and weathertight work — must be carried out or supervised by a licensed LBP. The contractor must provide you with a Record of Work on completion.
4. Price and Payment Terms
Be clear on how you'll be charged:
- Fixed price (lump sum) — you know the total upfront; variations must be agreed in writing
- Charge-up (time and materials) — you pay for actual hours and materials; ask for a budget estimate
- Progress payments — common on larger jobs; the schedule should be tied to milestones, not just dates
The contract should specify:
- The total price or hourly rate (plus GST)
- A payment schedule with clear milestones
- How variations (changes to scope) are priced and approved — always in writing
- Retention arrangements, if applicable
- What happens if payment is late
As a rough guide, a deposit of 10–20% is common for larger jobs, but be cautious of contractors asking for large upfront payments before work begins.
5. Timeframes and Programme
The contract should include:
- An expected start date and estimated completion date
- Key milestones for larger projects
- What happens if there are delays (weather, consent delays, material supply)
- Notice requirements if the programme changes significantly
6. Variations Process
Scope creep is one of the most common causes of cost blowouts. The contract must explain:
- How variations are requested and approved
- That no variation work begins until a written variation order is signed by both parties
- How variations affect the price and timeline
7. Insurance and Liability
Check that your contractor holds:
- Public liability insurance — ask your contractor what level of cover they hold and confirm it is appropriate for the scale of your project
- Contractor's all-risk insurance for larger projects
Ask for a certificate of currency before work starts. Also check your own home and contents insurance — some policies require you to notify your insurer before major building work begins.
8. Defects and Warranty
The contract should state:
- A defects liability period (commonly 12 months after practical completion)
- The process for notifying and rectifying defects
- Any manufacturer warranties on materials used
Note that under the Building Act, homeowners have statutory rights regardless of what a contract says — a contract cannot remove your legal protections.
9. Dispute Resolution
Even with the best intentions, disputes happen. The contract should outline:
- A negotiation or mediation step before escalating
- Reference to the Construction Contracts Act 2002, which governs payment disputes in NZ
- How adjudication or arbitration would work if needed
When to Call a Professional
If you're unsure whether a contract is fair or complete, consider having a lawyer review it before you sign — especially for projects over $10,000. For any work involving structural framing, weathertightness, or alterations to your home's envelope, always use a Licensed Building Practitioner. You can find qualified, vetted carpenters in your area through tradedirectory.co.nz.
For guidance on your rights as a consumer, Consumer NZ has useful plain-English resources on building contracts and disputes.
