Getting paid: a practical guide for NZ tradies.

Get it in writing

Every job should follow the same paper trail: a quote first, setting out the scope and price; client acceptance in writing — an email reply, a signed copy, or a clear text message confirming they want you to go ahead; then, for anything beyond a small job, a contract that formalises the terms — price, payment stages, timeframe, and what happens if either side wants to make changes along the way.

For smaller jobs, an accepted quote plus a page of written terms is usually enough to protect both sides. But it's worth knowing the line isn't just good practice — it's the law.

Under the Building Act 2004, residential building work priced at $30,000 or more (including GST) legally requires a written contract. Say you're quoting a $35,000 bathroom-to-kitchen reno in Khandallah — a written contract isn't optional there, it's a legal requirement, regardless of how well you know the client.

Take a deposit upfront

A deposit before you start covers your materials cost and shows the client is genuinely committed — not just collecting quotes to compare. It also protects you from being left out of pocket if a job falls through after you've already ordered supplies or turned down other work to fit them in. A standard deposit sits somewhere between 10% and 40% of the job total, depending on how materials-heavy the work is and how long the job will run for.

Use progress payments on larger jobs

For anything that runs over a few weeks, don't wait until the very end to get paid. Break the job into agreed stages — deposit, framing or rough-in complete, lock-up, final completion is a common structure — and invoice at each one. This keeps the amount of money you've got tied up in materials and labour at any given point manageable, and it means a dispute late in the job is over one stage of payment, not the whole contract.

Invoice promptly and clearly

Send the invoice as soon as the stage or job is done — same day if you can manage it. The longer an invoice sits unsent, the easier it is for the client to forget the work was even finished, and the more likely they are to query it when it finally does turn up. Make sure it's clear: what was done, the amount owing, when payment is due, and your bank account details right there on the page so there's no back-and-forth just to pay you. (For what has to legally appear on a compliant NZ tax invoice, see our invoices and quotes guide.)

Follow up overdue invoices early

The moment an invoice goes past its due date, send a short, friendly reminder — most late payments are a busy client who forgot, not a refusal to pay, and a quick nudge sorts it out. Don't let it drift for weeks hoping it'll sort itself out; the longer unpaid money sits, the harder it gets to recover and the more awkward the conversation becomes. If a polite reminder or two doesn't get a response, follow up with a firmer written notice before you consider the options below.

When it goes wrong

If a client simply won't pay, you've got real options. The Disputes Tribunal handles claims up to $30,000 — it's quick, informal, doesn't need a lawyer, and is designed for exactly this kind of dispute between a tradie and a homeowner.

You've also got rights under the Construction Contracts Act 2002, which sets out a formal payment claims and payment schedules process, a fast adjudication route for resolving disputes, and — importantly — the right to suspend work on a job if you haven't been paid what you're legally owed. Knowing this process exists, and that it's there to protect you specifically, is often enough on its own to get a stalled payment moving again.

Resources

A few places worth bookmarking before you need them:

• Building Performance — building.govt.nz ↗

  The government's official guidance on building contracts, consents, and the rules around residential building work.

• Standards New Zealand — free NZS 3902 contract template ↗

  NZS 3902 is the standard housing, alterations, and small-buildings contract used across the industry — a free template is available from Standards New Zealand.

Recommended: The Building Hub (buildinghub.nz) is a great one-stop shop for contracts, payment templates, and general business support for NZ trades businesses.