Most tradies in New Zealand are honest, skilled, and professional. But enough problems occur each year — incomplete work, cowboy contractors, disputes over scope — that knowing what to watch for is genuinely useful. These are the red flags that indicate a higher-risk contractor before work begins.
Red Flags in the Quote Itself
1. No itemised breakdown — just a single lump sum
A professional tradesperson quotes in detail: materials listed separately from labour, specific items called out, provisional sums identified. A lump sum quote with no breakdown makes it impossible to: - Compare fairly with other quotes - Understand what's included and excluded - Dispute scope creep later if the price increases
Not every small job needs a multi-page document. But for any job over $2,000–$3,000, line-item detail is expected.
2. Exclusions are buried or absent entirely
A good quote explicitly lists what's not included (demolition, consent fees, materials by others, remediation of unknown issues). If exclusions are absent or vague, disputes about scope are almost guaranteed.
3. Provisional sums that are suspiciously low
Provisional sums (PS) are budget allowances for work that can't be priced exactly upfront — waterproofing membranes under tiles, hidden structural issues, foundation unknowns. Some PS are legitimate. But deliberately low PS figures are a classic way to win a job with a low headline price, then increase the final invoice significantly.
Ask: "Is this PS realistic? What's your best estimate?" If the answer is vague or defensive, that's a concern.
4. No mention of consent or compliance
For work requiring building consent, plumbing compliance, or electrical certification, a professional quote addresses this explicitly: who lodges the consent, what it costs, who is responsible for inspections. If consent isn't mentioned for work that obviously requires it, ask directly.
Red Flags in How the Tradie Behaves
5. Pressure to start immediately or lose the spot
"I can start Monday but I need a deposit by Friday." Artificial urgency is a classic sales tactic and a warning sign. Genuine high-demand tradies are busy but don't need to pressure customers.
6. Full payment upfront — before any work is done
No legitimate contractor requires 100% upfront payment before starting. A deposit of 10–20% for materials or to secure a start date is normal. Full payment upfront removes all your leverage if the work is poor or incomplete.
What's reasonable: 10–20% deposit on signing, progress payments tied to completed milestones, final payment on completion and sign-off.
7. Cash only with no receipt
While cash payment is legal, a contractor who insists on cash only and can't provide receipts or invoices is indicating they're operating outside the tax system. This is a red flag both for their professionalism and for your records if a dispute arises.
You are entitled to a receipt for all cash payments. If they won't provide one, walk away.
8. Unable or unwilling to provide references
Any established tradesperson should be able to give you 2–3 recent client references. Reluctance to do so, or references who are clearly friends rather than actual clients, is a warning sign.
9. Unlicensed for work that requires a licence
For restricted building work, plumbing, gasfitting, and electrical work — the contractor must hold the relevant licence: - Builders: LBP licence (check at lbp.govt.nz) - Plumbers/gasfitters: PGDB registration (check at pgdb.co.nz) - Electricians: EWRB registration and APC (check at ewrb.govt.nz)
A contractor who says "I don't need a licence for this" when the work clearly requires one is either wrong or lying. Either way, it's a problem — unlicensed work creates consenting issues when you sell and can void your insurance.
10. No verifiable business entity
New Zealand businesses can be checked on the Companies Office register (companies.govt.nz) or via IRD's business register. A contractor with no verifiable company or GST registration, no traceable address, and no online presence is a higher risk. It doesn't mean they're bad — sole traders with no website exist — but it makes recovering from problems much harder.
Red Flags After Accepting a Quote
11. Refusing to provide a written contract
For significant work, a written contract is standard. Any professional contractor will provide one or sign a standard form (NZS 3902, MBA contract, or at minimum a clearly written letter of agreement). Reluctance to put things in writing is a red flag.
12. Requesting additional payment increases that aren't justified by variation
Price increases are legitimate when scope genuinely changes. But increases that aren't tied to specific documented variations — "oh the materials cost more than we thought" with no supporting invoice — are a red flag.
Your right: Any variation to the original price should be agreed in writing before the additional work proceeds. The original contract should specify this.
13. Poor communication and missed appointments
A contractor who doesn't show up when agreed, doesn't return calls promptly, or goes silent during the job is demonstrating how disputes will be handled if they arise. These behaviours during the job don't improve.
What to Do If You've Already Engaged Someone and Red Flags Appear
- Stop further payments until the current work stage is verified complete
- Document everything — photos, written records of conversations
- Write a formal email summarising your concerns and what resolution you require
- Contact MBIE (for building disputes) or your relevant licensing board
- Consumer NZ and Citizens Advice Bureau can advise on options
- Disputes Tribunal handles claims up to $30,000 — relatively cheap and accessible
Resources
- LBP register: lbp.govt.nz/search
- PGDB register: pgdb.co.nz
- EWRB register: ewrb.govt.nz
- Companies register: companies.govt.nz
- Disputes Tribunal NZ: disputestribunal.govt.nz
- Consumer NZ building advice: consumer.org.nz