2:18 pm today

How can you keep yourself safe when putting down a deposit for building work?

2:18 pm today
Patrice Lobb looking at the former site of works at her property

Photo: RNZ / Samuel Rillstone

Homeowners need to seek out personal recommendations when getting building work done, an industry expert says, as one way to help keep themselves and their money safe.

It comes after a group of homeowners in Wellington sounded the alarm about a construction company who they said took tens of thousands of dollars before its director disappeared.

So what can homeowners do to protect themselves when dealing with construction companies and tradespeople?

John Tookey, a Professor of construction management at AUT told Afternoons, while there were many solo tradies who wanted to do their best for clients they were getting lost by the "bad eggs", who spoiled things with bad behaviour.

"Some [builders] do ask for money upfront, a deposit of some description as a commitment... but one of the more typical [bad] behaviours is they'll come in hot to trot, work like hell for a week and then you won't see them for three or four.

"What that is, is they have multiple projects on and move from one place to another place which just pads out the process."

Tookey said unfortunately this was not uncommon practice, but it was not good practice and could cause a lot of stress and issues for clients.

If homeowners were asked for a deposit, it would normally be of relatively minimal value, up to 10 or 15 percent of the price, Tookey said.

Homeowners should look for personal recommendations from people they know, he said.

Tookey said good builder would often have various different testimonials from past clients and you could always follow up with these people to learn more.

Getting advice from a friend who had connectivity with the building industry or was a tradie themselves was also helpful, he said, especially for people who had no background in construction.

Using a registered builder was another way of weeding out "bad eggs", Tookey said as people behaving in such a way were unlikely to bother getting themselves registered.

"They are the bottom feeders, trying to pile it high, sell it cheap.

"Listen to the people who are there to actually help you. If it sounds too good to be true, it's probably too good to be true."

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