How much deposit should a builder ask for in NZ?
Short answer
As a rule of thumb, a builder's deposit shouldn't exceed about 10% of the contract price — 5–10% is the NZ industry norm. Deposits above 10% can even void a Master Build Guarantee, and requests for 30–50% upfront are a red flag. Payments after the deposit should be tied to completed stages of work.
Key facts
- 5–10% of the contract is the typical NZ deposit
- Above 10% can void a Master Build 10-Year Guarantee
- 30–50% upfront is a serious red flag
- Later payments should be tied to completed milestones, not dates
What's normal
Most NZ builders ask for a deposit of 5–10% of the contract value. Under Master Builder contracts, a deposit over 10% can make the homeowner ineligible for the Master Build 10-Year Guarantee — a useful sanity check on what's reasonable.
Why a big deposit is risky
If a builder takes a large deposit and then fails or walks off the job, you're often an unsecured creditor with little chance of getting the money back. The bigger the upfront payment, the more of that risk sits with you, not them.
Protect yourself
Insist on a written contract (required for work of $30,000 or more including GST), a payment schedule tied to completed milestones, and a clear variations process. And before you pay anything, check the company's public record — court action, insolvency history and director track record.
Knowing the rules is half the job. The other half is knowing who you're hiring — check any NZ builder's court action, insolvency history, director track record and AI risk score in 30 seconds.
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Related questions
Sources: MBIE / Building Performance — residential building contracts; Registered Master Builders — homeowner guidance. General information for NZ homeowners, not legal advice — building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.