The New Zealand roofing industry is under immense pressure. Data from BRANZ in February 2025 showed construction business liquidations are up 37% year-on-year. Material costs have surged, while demand has fallen dramatically due to economic conditions and a huge reduction in consent submissions. Margins are razor-thin and companies without a financial buffer are high risk. That risk is invariably transferred to homeowners. In this environment, some roofers are desperate enough to use deposits from new customers to complete previous jobs. It's a death spiral that often ends in liquidation, leaving deposit payers as unsecured creditors.
In recent months I've worked with six customers who'd lost deposits to a single roofing company that took money from 20 homeowners while trading insolvent. My team was able to help get the jobs completed at no additional cost to these customers, but this isn't sustainable and it shouldn't be necessary. I'm sympathetic to the pressures that affect all parties to a transaction, having been involved with a company that later went into liquidation during Covid.
A key issue is the relatively unregulated nature of the re-roofing sector. You would never allow someone without the requisite qualifications and experience to perform open-heart surgery on you. But while replacing a roof on a house is likewise a precise and exacting process, this is not considered restricted building work. Thus there are no minimum requirements for skills, experience, or qualifications to do that work, even though the primary residence is most people's single biggest asset and shelter is top dog on Maslow's hierarchy of needs.
Kiwi homeowners therefore need to be savvy about using consumer protection and fair trading laws to their advantage – but the law can't help you if you don't know it exists. So what are your protections?
Your legal rights are greater than you might think
Most homeowners don't realise the Consumer Guarantees Act provides powerful protections. Work must be carried out with reasonable care and skill, completed within agreed timeframes, and materials must be of acceptable quality. You have the right to withhold payment until work is satisfactory, hire someone else and recover certain costs, or claim compensation for consequential losses.
The Fair Trading Act protects you from misleading conduct and unfair contract terms. The written quote you receive from a tradesperson, once you accept it, is a binding contract under the Contract and Commercial Law Act.
Yet every week I see homeowners who do not know about these protections and have compromised themselves: they have paid in full before the work is complete, accepted verbal variations, or accepted the cheapest quote without checking credentials. In doing so, they are playing Russian roulette with their most valuable asset.
Recourse to these rights is available via the Disputes Tribunal. The Tribunal is accessible, fair, reasonable, low cost and requires no legal training or representation. Mediators are experienced at circling the square between consumers and companies, getting to the crux of the matter.
Red flags you mustn't ignore
We have processed more than 4,200 roofing transactions through the Roofbuddy marketplace in the last three years and seen every warning sign and edge case. If you're getting work done on your property, watch out for:
- Excessive deposit requests
- Pressure to pay immediately
- Quotes substantially below others in price
- Delays or slow communication after taking deposits
- Excuses about materials
- No fixed business premises
- Recent company incorporations or name changes
One Christchurch company left an $850,000 hole after liquidation. Another took deposits while knowingly insolvent. A homeowner suffered $40,000 damage when incomplete work failed during a storm – they'd paid in full despite substandard work.
These aren't isolated incidents. They're symptoms of an industry where anyone can pick up a drill and call themselves a roofer.
Your prevention playbook
Before signing anything:
- Verify trade qualifications via the LBP register
- Review a current public liability insurance certificate for the correct entity
- Get recent reference sites and visit them
- Speak to homeowners if you are able
- Search the Companies Office register and Insolvency register
- Check directors' histories
Deposits should be between 20–30% and come with a firm commitment to timeframe. Get everything in writing – scope, dates, materials, warranties. Consider independent quality assurance before making final payment.
Don't approve variations verbally. Address concerns immediately and follow up in writing. Before final payment, conduct thorough inspection, verify all work quoted is complete, get warranty documentation, and consider an independent check.
When things go wrong
If your roofer disappears before the job is done:
- Document everything immediately
- Secure your property from weather damage
- Contact your insurance company
- Consider the Disputes Tribunal for claims up to $30,000
For defective work:
- Give written notice
- Allow reasonable time to remedy
- Get an independent assessment
- Obtain repair quotes from another roofer
- Send a formal demand with deadline
- Proceed to the Disputes Tribunal if needed
The reform we desperately need
Currently, anyone can re-roof your house without qualifications. This is absurd. Re-roofing is complex, technical work protecting your most valuable asset. We need:
- Mandatory Licensed Building Practitioner requirements for all re-roofing work, not just new builds
- Independent quality assurance with compliance certification on completion of every job
- Accessible and effective enforcement of directors' obligations regarding trading insolvent or obtaining by deception
Reform moves at glacial pace while homeowners suffer. The government says existing laws are sufficient. Perhaps they're right – but only if people know about them and companies are qualified to do the work properly.
What you can do today
- Vote with your wallet – choose qualified roofers even if they cost more
- Demand proper documentation and warranties
- Support platforms that vet and guarantee work
- Write to your MP supporting reform
- Share your experiences to help others
Knowledge is power. The law provides protections, but you must know how to exercise them. By following prevention strategies, you dramatically reduce risk. By knowing your rights, you're equipped to act when things go wrong.
Your home is your castle. In a market where good operators are being squeezed while cowboys operate with impunity, you must be your own advocate. Be informed, be vigilant, and be prepared to stand up for your rights.
The government thinks there's enough legislation. Let's prove them right by using it.
About the author
James Logan has spent his entire career as an entrepreneur and company director. His extensive experience in the property development and trade industries inspired his founding in 2021 of the state-of-the-art marketplace Roofbuddy, which brings together homeowners and quality roofers to transact and create better roofing experiences by removing the hassle from roofing work. Roofbuddy has to date processed more than 4,200 roofing transactions worth more than $86 million in marketplace revenue while advocating for consumer protection and industry reform. James has since founded the Guardian Steel and Guardian Seal businesses to bring healthy competition and greater choice to the New Zealand roofing industry.