Your legal rights when chasing unpaid invoices in NZ

You have real legal options

Most tradies either write off unpaid invoices or spend months sending unanswered emails. Both outcomes are unnecessary. New Zealand law provides clear, accessible legal tools to recover what you're owed - and most of them don't require a lawyer.

This guide covers your primary options: the Construction Contracts Act 2002, the Disputes Tribunal, and the District Court. Understanding which tool to use, and when, is the difference between getting paid and writing it off. None of these routes protect you from the other side of the ledger - a client claiming your work caused damage. That's what tradie insurance is for.

The Construction Contracts Act 2002

If you're doing building or construction work - including electrical, plumbing, drainage, HVAC, landscaping with earthworks, and painting - the Construction Contracts Act 2002 (CCA) is your most powerful tool. Most tradies don't know about it, or assume it only applies to large commercial projects. It doesn't - it covers most residential and commercial construction contracts in NZ.

What the CCA gives you

Under the CCA, you can issue a payment claim - a formal invoice that triggers a legally defined timeline for the other party to respond. Once you serve a valid payment claim:

1. The client (the "respondent") must provide a payment schedule within 20 working days - or earlier if your contract specifies a shorter period
2. A payment schedule must state how much they agree to pay, and if less than claimed, why
3. If they don't provide a payment schedule, the full claimed amount becomes due automatically
4. You can then apply to the District Court to enforce that amount without a full hearing - it's treated like an unpaid debt, not a disputed claim

CCA adjudication

If the client provides a payment schedule but pays less than claimed, you can refer the dispute to adjudication. This is a fast, relatively private dispute resolution process:

• Typically resolved within 20-35 working days
• The adjudicator is a qualified construction professional, not a judge
• Lawyers are not required (though parties may use them)
• The adjudicator's decision is binding and immediately enforceable
• Costs are borne by the losing party in most cases

Adjudicators in NZ are appointed through bodies like the Arbitrators' and Mediators' Institute of New Zealand (AMINZ) or the Resolution Institute. Filing fees typically range from $500-$1,500 depending on the value and complexity of the claim.

What counts as a valid payment claim under the CCA?

Your payment claim must:

• Be in writing
• Identify the construction contract it relates to
• Identify the relevant period for the claimed work
• State the claimed amount and the due date for payment
• Indicate it is made under the Construction Contracts Act 2002

A standard invoice with that final statement added is usually sufficient. Consult the CCA directly (available at legislation.govt.nz) or seek brief legal advice if you're doing this for the first time.

Who does the CCA cover?

The CCA covers construction work as defined in section 6 of the Act. This includes:

• Construction, alteration, repair, restoration, maintenance of buildings
• Demolition
• Earthworks
• Civil engineering and infrastructure
• Mechanical and electrical engineering works on construction sites
• Plumbing, drainage, and HVAC
• Painting and decorating
• Landscaping involving earthworks or structures

The CCA does not cover:

• Supply of materials only (no labour component)
• Professional services (architecture, engineering design) unless they also involve physical work
• Contracts for residential occupants doing work on their own home (the owner-occupier exclusion - but this applies to the owner, not the tradie)

The Disputes Tribunal

For amounts up to $60,000, the Disputes Tribunal (New Zealand's equivalent of a small claims court) is available to any person or business. It is fast, cheap, and does not require legal representation.

Filing fees (current, from January 2026)

Files are submitted online at disputes.govt.nz or at any District Court registry.

What you need to file

• Your invoice(s) and the original quote or contract
• Evidence that the work was completed: photos, completion messages, sign-off emails
• Records of your attempts to collect: emails, call logs, written demands, courier receipts
• The respondent's full legal name and address (for a company, the registered company name from the Companies Register at companiesoffice.govt.nz)

What to expect at a hearing

Hearings are usually scheduled within 6-8 weeks of filing. Both parties are contacted and given a hearing date. You can appear in person, by phone, or by video - the tribunal is flexible, particularly for parties outside the main centres.

The hearing is informal. A trained referee hears both sides and asks questions. There are no formal rules of evidence. You explain your claim, show your documentation, and respond to any defence. The referee makes a binding decision, usually on the day or within a few days.

Importantly: the respondent's failure to show up does not prevent a decision. The referee can make an order in your favour even if the other party doesn't attend.

Enforcing a Disputes Tribunal order

If the client still refuses to pay after a tribunal order, you can enforce it through the District Court. The order is treated as a court judgment. Enforcement options include:

• A collections warrant (the bailiff can collect money owed from the debtor)
• Attachment of earnings (money deducted from wages)
• Charging orders over property

Enforcement adds cost and time, but a binding tribunal order gives you real legal leverage that an unpaid invoice alone does not.

The District Court

For invoices above the $60,000 Disputes Tribunal limit, the District Court is the appropriate venue. The process is more formal and typically involves legal costs.

Filing in the District Court

For undisputed debts (where the client doesn't deny owing the money, they just haven't paid), a summary judgment application is the most efficient path. If successful, it results in a court judgment without a full trial.

For disputed claims, a full civil proceeding may be required. This takes longer (typically 6-18 months) and the legal costs can be significant relative to the amount claimed. Get a fixed-fee quote from a solicitor before proceeding.

Statutory demands for company debtors

If the debtor is a company (not an individual or sole trader), and the amount owed is over $1,000 and is not genuinely disputed, you can issue a statutory demand under section 289 of the Companies Act 1993.

A statutory demand requires the company to either pay the debt or apply to have the demand set aside within 15 working days. Failure to respond is grounds to apply for the company to be put into liquidation.

This is a powerful tool that gets attention - but it should only be used for undisputed debts. Issuing a statutory demand for a genuinely disputed amount exposes you to a costs order. Take legal advice before using this process.

What you need to prove your case

Regardless of which process you use, your chances of success are directly related to your documentation. Collect and keep:

Before the job:

• A signed contract or accepted quote (email acceptance is sufficient)
• Written scope of work
• Any agreed variations in writing

During the job:

• Progress photos showing work completed at each stage
• Text or email messages confirming milestones
• Delivery receipts for materials

After the job:

• Completion notification (text, email, or sign-off form)
• The invoice itself with due date and bank details
• All follow-up communications: emails, texts, call records
• Your formal written demand and proof of delivery

A well-documented claim is rarely contested successfully. Most clients who dispute invoices in the tribunal do so verbally - "the work wasn't finished" or "there were defects" - without the documentation to support it. Your documentation is your case.

The 6-year limitation period

Under the Limitation Act 2010, you have 6 years from the date the debt became due to take legal action. The clock starts from the payment due date on the invoice, not the invoice date.

This means invoices from 2-3 years ago may still be recoverable. Don't assume time has run out - check the due date. Recovery rates fall significantly after 30-60 days, but the legal right to pursue persists for 6 years.

Using a professional follow-up service

Legal action is a last resort - it costs time and energy even when you win. A professional calling service often resolves debts faster and with less collateral damage.

A trained third party calling on your behalf sends a clear signal: the debt is being managed professionally, and legal action is the next step if it isn't resolved. Many clients who have been ignoring your calls will respond to a third-party contact - because it changes the dynamic from personal to professional.

This approach is most cost-effective for invoices in the $500-$15,000 range, where the Disputes Tribunal is available but the time investment may not feel proportionate.

FAQ

Does the CCA apply to residential work? Yes. The Construction Contracts Act applies to both commercial and residential construction contracts in NZ. The owner-occupier exclusion means individual homeowners cannot use the CCA's payment claim process against each other - but it does not restrict tradies from using it against residential clients.

Can I use the Disputes Tribunal against someone in another city? Yes. You can file in the tribunal nearest to where you live or where the contract was performed. The other party will be notified and can attend by phone or video if they're in a different location.

What if the client has already paid part of the invoice? You can file a claim for the outstanding balance only. Make sure your claim clearly states the original invoice amount, payments received, and the remaining balance.

Can I recover my legal costs if I win? In the Disputes Tribunal, you can ask the referee to award costs, but they are rarely awarded in full. In the District Court, the successful party can typically recover a portion of legal costs on a "party-party" basis. CCA adjudication costs are usually borne by the losing party.

What if the company has been struck off? If the company has been dissolved (struck off the Companies Register), you cannot sue it directly. However, if you believe the directors transferred assets to avoid paying creditors, you may have a claim against the directors personally. Get legal advice if this is your situation.

Update log

• 16 June 2026 - Updated the Disputes Tribunal jurisdiction limit to $60,000 (was $30,000) and refreshed the filing-fee table to current figures ($61-$468). Why: the Tribunal's financial jurisdiction rose from $30,000 to $60,000, effective 24 January 2026, and filing fees changed. Sources: Ministry of Justice - Disputes Tribunal jurisdiction, Disputes Tribunal forms & fees.
• 15 April 2025 - Guide first published.

Last reviewed: 16 June 2026.