Key points at a glance
- The Consumer Guarantees Act requires services to be done with reasonable care and skill.
- The Fair Trading Act bans misleading and deceptive conduct by traders.
- The Building Act provides automatic implied warranties on residential building work.
- A 12-month defect repair period applies after residential building work in many cases.
Consumer Guarantees and Fair Trading Acts
Under the Consumer Guarantees Act 1993, services must be carried out with reasonable care and skill, be fit for any particular purpose made known, and be completed within a reasonable time and price where not agreed in advance. If they are not, you are entitled to a remedy.
The Fair Trading Act 1986 prohibits misleading or deceptive conduct and false representations — for example, a trader claiming to be licensed when they are not. The Commerce Commission enforces this law.
Building Act warranties
The Building Act 2004 sets implied warranties for residential building work that apply automatically, whether or not they are written into your contract. They cover matters such as good workmanship, suitable materials, compliance with the plans and the Building Code, and fitness for purpose.
A 12-month defect repair period commonly applies, during which the builder must fix defects you notify them of that are their responsibility. Longer limitation periods can apply for other claims. A written contract is required for residential building work above a set value.
For homeowners
- Use a written contract and keep all quotes, invoices and correspondence.
- Report defects in writing during the 12-month defect period.
- If a trader misled you, you can raise it with the Commerce Commission or Disputes Tribunal.
For tradespeople
- Provide the required written contract and disclosure for residential work over the threshold.
- Honour implied warranties and the defect-repair period.
- Never make misleading claims about licensing, products or outcomes.
Official sources
The information on this page is provided as a general guide only. tradedirectory.co.nz makes no representations or warranties regarding the accuracy, completeness, or suitability of this information for your specific situation. Costs, timeframes, and recommendations vary significantly depending on your location, property, and individual circumstances. Always obtain multiple quotes from qualified tradespeople and seek independent professional advice before undertaking any home improvement or building work. tradedirectory.co.nz accepts no liability for any loss or damage arising from reliance on the information provided on this site.