Building a new home is one of the most significant investments you’ll make across your lifetime. A process that requires significant emotional and financial commitment, and most importantly, a solid foundation – that starts and ends with your builder.
As experienced builders, we understand that selecting the right building company is a really important decision, one of the biggest factors that will determine a successful outcome to the project, in fact. Your residential building company holds the key to the entire project’s success, the wrong choice can lead to cost overruns, project delays, poor workmanship and significant stress! Whereas hiring the right builder can transform the process into a rewarding experience, ensuring your investment is protected and your vision is brought to life! As experienced builders, these are our top tips for how to go about selecting the right builder.
1. Identify Your Needs
The very first step to the build process starts with you – you need to have a pretty good idea of what it is you are trying to achieve. This includes the build location, build type (custom or set plan), and also an understanding of your budget restrictions.
Knowing these things upfront will help with narrowing down your choice of builders, because some builders specialise in certain types of builds, some in certain locations or terrain types (such as hill builds), and some prefer to work on more complicated or high-end projects. Having a good understanding of your aspirations and limitations will reduce wasted time when in discussions with potential builders, but also with other stakeholders such as banks, architects, contractors etc.
Insider Tip: Look for builders with a no-obligation free consultation to discuss your project before committing to anything. They will be able to point out things you may never even have thought of.
2. Do Your Research!
While it may take a bit of time, putting together a decent list of potential builders is a necessary step. The good news is that online searches and AI search platforms can speed up this process for you. Asking for recommendations from friends, colleagues, and family is also a good option, as these real-world experiences can provide valuable insight. Additionally, online reviews and testimonials can be useful for a broader perspective on a builder’s reputation within the wider community. Look out for building companies that have worked on projects similar to what you are hoping to achieve.
Choosing a builder that operates in your local area also offers its advantages. Local building companies often have established relationships with reputable local contractors and suppliers. This trusted network of regulars generally leads to faster response times for site visits and urgent needs, a deeper understanding of local regulations and geographical conditions, and a shared commitment to the wider community.
Insider Tip: Where possible, stick to local build companies as the benefits of hiring a local builder are immense. Many nationwide builders function like franchises, meaning that the reviews associated with the overall company may not accurately reflect the quality of their local teams.
3. Reputation Matters!
This is one instance where what others say does matter! A builder’s past performance is one of the best indicators of their future performance. Don’t rely solely on website testimonials here or company-generated slogans or marketing materials, you will need to dig a bit deeper. Request references from past clients who have recently completed build projects with this builder and ask detailed questions such as: were deadlines met? If not, how was this managed? Did the project come in on budget? How were variations to the budget handled? What was the quality of workmanship like, and how has communication been throughout the project? Don’t forget to ask if they would hire this builder again.
Check out some online reviews and testimonials, such as social media and industry review websites or forums. Keep in mind that some negative reviews are inevitable (people who have something negative to say are often the most vocal). While a few negative reviews aren’t necessarily a big red flag (no body is perfect all of the time), a consistent pattern of complaints especially around communication, delays, or quality should immediately raise concerns.
Insider Tip: If possible, ask to visit a current or recently completed project. Observe the site’s cleanliness, safety practices, and the apparent quality of work. Speak to site contractors if appropriate for insider knowledge. A well-managed work site is often a sign of an efficient company!
4. Verify Credentials
Following on from building up your list of potential builders – it’s time to do a bit of due diligence and verify their credentials. Do not be tempted to skip this step – you need to know your builder is qualified and licensed for the job – this is non-negotiable!
In New Zealand, your builder must be a Licensed Building Practitioner (LBP) to be eligible to sign off on any Building Consent work (ensuring all building work complies with Building Code regulations).
- Check The LBP Register. The Ministry of Business, Innovation and Employment (MBIE) maintains a public LBP register. Verify status, licensing class, and any disciplinary history over the past three years.
- Industry Association Membership. Look for affiliations with reputable industry bodies such as the Registered Master Builders Association (RMBA) or the NZ Certified Builders Association (NZCB). Membership in these associations indicates a commitment to quality, professional development, and adherence to codes of conduct, but also additional peace of mind through their independent building guarantees, such as the Master Build 10-Year Guarantee or the Halo 10-Year Residential Guarantee. These guarantees can cover eventualities like loss of deposit, non-completion, and defects in materials and workmanship, even if the builder ceases trading.
- Industry Awards Or Recognition. Not essential but sometime it helps! Recognition by way of industry awards or feature such as the Master Builders House of the Year for example show recognition from industry peers.
Insider Tip: Always personally verify that your prospective builder and their key subcontractors hold the appropriate LBP licenses.
5. Read The Contract Thoroughly
Having narrowed down your list of builders to perhaps three strong contenders, you might wish to get a quote and then contract from all three in order to properly compare pricing and deliverables. Keep in mind a comprehensive and transparent written contract protects both you and your builder. If in doubt, always have a legal professional review the contract before signing. When reviewing and comparing contracts pay special attention to the following:
- Pricing Structure. A “fixed-price contract” provides the most certainty, but even these can have variations. Avoid estimate-based pricing as this can lead to budget overruns and financial pressure. Ensure your contract states exactly what payments are necessary and when.
- Inclusions And Exclusions. What exactly is covered? Does the quote include council fees, utility connections, landscaping, driveways, and appliances? Be wary of vague “allowances” or “provisional sums” for significant components. Unrealistic provisional sums are a common source of budget blowouts.
- Material Specifications. Ensure you are comparing like for like when looking at building quotes. Brand, quality and specifications do vary between builders for everything from framing timber through to fixtures and fittings. If you have specific preferences, ensure they are clearly noted and priced.
- Variations And Changes. Changes made during the build process are fairly common. Your contract must clearly outline the process for variations (changes to the original scope). This should include how changes are proposed, priced, approved, and how they might impact the timeline. Get all variations in writing!
- Completion Timelines. The contract should clearly state realistic timelines, with provisions for delays (e.g., weather, material shortages) and what this could mean for the build completion dates.
Insider Tip: Payments should be tied to completed work stages (e.g., foundations, framing, roof-on, practical completion). A reasonable deposit (typically no more than 10% of the build cost) is pretty standard. Avoid contracts where builders demand large upfront payments or payments scheduled ahead of work completed.
6. Address Communication And Availability
Clear lines of communication should be established early on, if the builder isn’t replying to your emails or returning phone calls and you haven’t even signed the contract yet – then this is a bit of a red flag.
During the hiring phase, find out specifically who will be your primary contact? How often can you expect updates? And how do their project management updates work? One of the biggest reasons why homeowners and builders end up in conflict is misunderstandings arising from poor communication.
Insider Tip: Good builders are transparent about problems and challenges. They will openly discuss potential issues, offer solutions, and keep you informed, even when things don’t go as planned!
7. Double Down On Workmanship Guarantees And After-Sales Support
Always ask about guarantees and warranties provided by the builder. A reputable builder will likely offer guarantees that cover poor workmanship, any structural or weathertightness issues and post-completion defects (usually for a period of 12 months).
As previously mentioned, one common third-party guarantee available here in New Zealand is the Master Build 10-Year Guarantee. The Master Build Guarantee provides peace of mind through an unbiased third-party process making it useful for resolving issues that may occur in the residential building industry and offers a level of consumer protection (over and above that of the Building Act and Consumer Guarantees Act). Note, this guarantee is not automatic upon hiring any builder; it must be added to your project before commencement.
Insider Tip: Look for a Registered Master Builder (who offers the Master Build Guarantee) or a builder who is a member of the New Zealand Certified Builders Association.
Key Takeaways For Choosing The Right Builder
Choosing the right builder ultimately comes down to a careful blend of practicality and intuitiveness. After all the research, reference checks, and contract reviews, you still need to feel comfortable and confident in the team that you will be working with for the best part of a year. Keeping these 6 things in mind will set you on the right track – always ensure your builder:
- Demonstrates a clear understanding of your vision and needs
- Communicates openly, honestly, and proactively
- Has a proven track record of quality workmanship and project delivery
- Offers transparent pricing and a robust contract
- Is appropriately licensed (and insured)
- Provides reputable guarantees for peace of mind
Investing time and effort in choosing the right building company means you’re not just securing a contractor, you’re securing a reliable professional partner who will guide you through the exciting, complex, and ultimately rewarding journey of creating your new home! Don’t hesitate to reach out to the team at JAR Builders for more advice, we are your local builders in the Christchurch and Canterbury area.
