(If this isn't you, check out our Tradespeople FAQs)
Is your job worth less than $30,000 inc GST?
You do not need to have a contract in place if your job cost will be under $30,000 inc GST.
However, it’s still worth considering a contract. When you have a contract in place you have a document which clearly states the expectations of the job, payments and the timing of the work.
Is your job worth over $30,000 inc GST
Under New Zealand law, jobs valued over $30,000 including GST require a written contract. When a job is over this value it’s reasonable for a tradesperson to ask for a 10% deposit.
Creating a contract
Your tradesperson may have a contract template that they use, however it is worth familiarising yourself with what it should contain. The Consumer Protection website is an excellent place to start, they detail the requirements for a contract, supply a free base template and it’s all content created for consumers to use.