Contractor Took Your Deposit and Didn't Finish? How to Claim Through the Disputes Tribunal in NZ
You paid a deposit for renovation work. The builder either walked off the job, left it half-finished, or delivered work so poor it needs redoing. Now they won't answer your calls. This is one of the most common disputes heard by the Tribunal — and one where preparation makes the difference between getting your money back and walking away frustrated.
Does Your Claim Fit the Disputes Tribunal?
Contractor deposit disputes, unfinished work claims, and bad workmanship complaints all fall under the Disputes Tribunal's jurisdiction. The legal basis is breach of contract, often combined with breaches of the Consumer Guarantees Act 1993 (which requires services to be carried out with reasonable care and skill).
The key requirements:
- The amount must be $60,000 or less (the Tribunal's ceiling since 24 January 2026). If your total loss exceeds this, you can abandon the excess to fit within the limit — but you lose the right to recover that abandoned portion anywhere.
- The dispute must be genuine. If the contractor acknowledges they owe you the money but simply hasn't paid, that's undisputed debt — a District Court matter, not a Tribunal matter.
- The contractor must not be covered by a specialist forum. Standard building-contract and workmanship disputes go to the Disputes Tribunal. Residential tenancy matters and registered motor-vehicle trader disputes go to their specialist tribunals.
Calculating What You're Owed
Your claim amount should reflect your actual financial loss. Break it down clearly:
- Deposit paid for work that was never started or completed
- Cost of remedial work — get at least two independent quotes from other tradespeople to fix or finish the job
- Consequential losses — did the unfinished work force you into temporary accommodation, or cause damage to other parts of the property?
- Minus any value received — if 60% of the work was completed to an acceptable standard, you can only claim for the remaining 40% (or the cost of fixing the defective portion)
Be conservative and precise. Inflated claims lose credibility with the Referee.
Building Your Evidence
Contractor disputes are evidence-heavy. Gather everything before you send the demand letter:
The contract or quote. Whatever written agreement you had — a formal contract, a written quote, even a text message confirming the scope and price. If the agreement was verbal, write down exactly what was agreed, including the price, timeline, and scope.
Photos and video. Document the current state of the work. Take wide shots showing context and close-ups showing specific defects. Date-stamp everything. If the contractor left materials or rubbish on site, photograph that too.
Payment records. Bank statements, receipts, or invoices showing what you've paid. If you paid cash, you need whatever proof of payment exists.
Correspondence. Every email, text, and written communication about the work, the problems, and your attempts to get the contractor to come back and fix things.
Independent quotes. Get quotes from other tradespeople to complete or repair the work. Two quotes from different contractors is ideal — it shows the Referee that your claim amount is reasonable, not inflated.
Free Download
Get the NZ Disputes Tribunal Filing Checklist
Everything in this article as a printable checklist — plus action plans and reference guides you can start using today.
Naming the Right Entity
This is where contractor disputes often go wrong. If the builder trades through a limited company, your claim must name the company's exact registered legal name — not the trading name on their van, website, or invoice.
Search the New Zealand Companies Office register (companiesoffice.govt.nz) using the trading name to find the registered company name and number. An order against the wrong legal entity can be unenforceable.
If the builder is a sole trader (no company registration), the claim goes against them personally: their full legal name, "trading as" the business name.
What Happens at the Hearing
The Referee will want to hear both sides. You explain what was agreed, what went wrong, and what it costs to fix. The contractor explains their version. The Referee examines the evidence, asks questions, and either facilitates a settlement or makes a binding order.
If the contractor doesn't show up after being properly served, the Referee can proceed in their absence — but you still need to prove your case with evidence.
Common orders include a money order for the deposit and/or remediation costs, or a work order requiring the contractor to complete or fix the job (always with an alternative money order if the work isn't done by the deadline).
The NZ Disputes Tribunal filing guide walks through the entire process from demand letter to enforcement, including worksheets for calculating your claim and organising evidence.
Get Your Free NZ Disputes Tribunal Filing Checklist
Download the NZ Disputes Tribunal Filing Checklist — a printable guide with checklists, scripts, and action plans you can start using today.