Building a new home is one of the biggest investments most New Zealanders will ever make. With new builds continuing to gain popularity nationwide, selecting the right builder has never been more crucial. One of the most critical checks homeowners must make before starting a new build is whether their builder is properly licensed.
Working with a licensed builder helps protect your investment, ensures your home meets legal requirements, and gives you confidence that your new build is completed to a professional standard. In this guide, we explain what licensed builders do, why licensing matters for new builds in New Zealand, and exactly what homeowners should check before signing a building contract.
What Is a Licensed Builder in New Zealand?
In New Zealand, a licensed builder is a tradesperson who is registered under the Licensed Building Practitioner (LBP) scheme, which is administered by the Ministry of Business, Innovation and Employment (MBIE). The LBP scheme was introduced to improve building quality and accountability across the industry.
Licensed builders have proven they meet minimum standards of skill, knowledge, and experience in their trade. For new builds, LBPs are particularly important because many parts of residential construction are classified as Restricted Building Work (RBW).
Why Licensed Builders Are Essential for New Builds
New builds involve complex construction work that must comply with the New Zealand Building Code. Certain work, such as structural framing, foundations, roofing, and external weather-tightness, can legally only be carried out or supervised by a licensed building practitioner.
If restricted building work is carried out by an unlicensed builder, it can result in failed council inspections, difficulties obtaining a Code Compliance Certificate (CCC), reduced resale value, and potential legal or insurance complications.
For homeowners, this makes checking a builder’s licence an essential step before committing to a new build.
Restricted Building Work Explained
Restricted Building Work refers to the parts of a new build that are essential to the structure and safety of the home. This includes foundations and structural framing, load-bearing walls, roofing systems, and external cladding and weather-tightness elements. Only licensed builders are legally permitted to carry out or supervise this work and sign off the required Record of Work (RoW) for council compliance. Without these records, your new build may not be considered compliant under New Zealand law.
What Homeowners Must Check Before Choosing a Builder
Not all builders are licensed in the same areas, and not all licences are suitable for every type of new build. Before signing a contract, homeowners should take the time to verify the following.
1. Confirm the Builder’s LBP Status
Always check that your builder is currently licensed under the LBP scheme. Licences must be renewed annually, so it’s important to ensure the licence is active—not expired or suspended.
You can also check the builder’s licence class (for example, Carpentry, Site, or Design), any past disciplinary history, and how long they have held their licence.
For new builds, a licensed carpenter or site licence holder is typically required.
2. Check Experience With New Builds
Not all licensed builders specialise in new builds. Some focus on renovations or small-scale work, while others have extensive experience managing full new home builds.
Ask your builder how many new builds they’ve completed, whether they have experience with similar house designs and if they regularly work with council inspections and compliance.
Experience with new builds helps ensure smoother project management and fewer delays.
3. Verify Insurance and Warranties
Licensed builders should carry appropriate insurance, including public liability insurance and, where applicable, contract works insurance. This protects both the builder and the homeowner during the construction process.
Most new builds in New Zealand are also covered by implied warranties under the Building Act, and many builders offer additional workmanship guarantees.
Homeowners should always request written confirmation of:
- Insurance coverage
- Warranty periods
- What is included or excluded?
4. Understand Who Is Responsible for Compliance
Even when working with a licensed builder, homeowners should clarify who is responsible for building consents, inspections, Records of Work, and obtaining Code Compliance Certificates.
Some builders manage the entire compliance process, while others require homeowner involvement. Understanding these responsibilities early helps prevent delays at the end of the build.
The Risks of Using an Unlicensed Builder
Choosing an unlicensed builder for a new build can expose homeowners to serious risks. While lower prices may seem appealing, the long-term consequences often outweigh any short-term savings.
Potential risks include non-compliant construction, failed council inspections, inability to obtain a Code Compliance Certificate (CCC), reduced resale value, and legal disputes or remediation costs. In some cases, homeowners may even be required to pay for work to be redone by a licensed builder to achieve compliance.
Licensed Builders and Fixed-Price New Build Contracts
Many new builds in New Zealand are delivered under fixed-price contracts. While this provides cost certainty, it also makes it even more important to work with an experienced licensed builder. Licensed builders are more likely to accurately scope the work, understand compliance requirements, manage subcontractors effectively, and reduce costly variations. This ultimately leads to a smoother build process and fewer surprises along the way.
How Licensing Protects Homeowners Long-Term
Using a licensed builder doesn’t just protect you during construction; it also protects your home long after the build is complete. Licensing ensures accountability, traceability, and quality assurance.
If issues arise in the future, having licensed professionals involved in your new build makes it easier to identify responsibility, make warranty claims, resolve disputes, and provide the necessary documentation during resale.
For many buyers, proof that a home was built by licensed builders is a key trust factor.
Final Checks Before You Build
Before committing to a new build, homeowners should confirm their builder’s LBP status, check relevant licence classes, review the builder’s experience with new builds, verify insurance and warranties, and understand compliance responsibilities. These checks take little time but can prevent significant stress and reduce financial risk.
Building With Confidence in New Zealand
New builds offer an exciting opportunity to create a home that suits modern Kiwi lifestyles. However, success depends heavily on choosing the right professionals from the outset. Working with licensed builders ensures your new build meets New Zealand building standards, complies with legal requirements, and delivers long-term value.
By understanding what to check and why licensing matters, homeowners can move forward with confidence, knowing their new build is in safe, qualified hands.