Home Builders Licence Vs. Contractors Licence

Licencing bureaus and regulatory environments vary in many different parts of the world. To avoid confusion about the terms ‘Home Builders Licence’ and ‘Contractors Licence’, we have to look closely at how other countries handle their building licences.

In the US, there’s the ‘State-by-State Contractor Licence’ where the law varies per governing state laws, and surprisingly from their end, there are states which do not require general contractor licences at all.

In the UK, a comprehensive ‘Builder’s Licence’ scheme is currently being developed, and they have yet to align their regulatory requirements.

So in the context of New Zealand, if you are looking to define what a contractor’s license is. That is not the official turn of phrase they use here- you will not find that industry term, no matter how hard you try.

A contractor’s license or home builders license in NZ is more commonly known as the LBP scheme or referred to as the ‘Licensed Building Practitioner’. That is the local title for it, and there is only one governing body that handles the licensing regulations and this is the MBIE.

The Ministry of Business, Innovation, and Employment (MBIE) is the central governing body when it comes to building activity and adherence to the building code in New Zealand.

What is a Licensed Building Practitioner? Why do you even need a Building Licence?

A regular building contractor in New Zealand can find steady work just by having enough years of trade experience and apprenticeships in the building construction industry. However, this is all well and good until that individual comes across a requirement for Restricted Building Work (RBW).

RBW means residential building work that affects the primary structure, weathertightness, fire safety of a construction project.

Not having an LBP license means you are not allowed to take on such work because you are not certified in your Area of Practice (AOP). If you want to be considered as part of the top new house builders in Whangarei, you have to work hard to get a proper building licence, by getting tested and certified for construction competencies.

For aspiring builders, there are 7 areas you can apply to get a licence for and these Area of Practices (AOPs) are:

Ideally, any individual who shows progression and competency in their building skills should be marked with a government certification. This is a recognisable seal of approval which proves that you are qualified and responsible to handle RBWs. In fact, this qualifies you to become one of the best new home builders in Whangarei.

So for any regular building contractor who takes their career seriously, they will have to take the challenge of being formally recognised by an NZ regulation agency. For builders, this is to get their occupation-specific skills certified through the LBP scheme by the MBIE licence board.

How does having an LBP certification help consumers in selecting a builder?

Reliable Whangarei new home builders are hard to find, so to address this issue, the LBP scheme was started in 2007 to make sure that all building work is done correctly and supervised by trustworthy and skilled building practitioners.

The NZ government wanted to create a strong culture of accountability among building practitioners with regard to the quality of the work accomplished. They wanted to ensure public safety, as well as home affordability, and even elevate the overall performance of public and private building work in New Zealand.

For property owners, an LBP seal ensures consumer protection and insurance coverage for Whangarei home builders under the Master Builder guarantee.

There is real harm in dealing with non-licenced contractors who do not have the right skills to implement the needed specifications to make sure that the build is safe. They mainly put lives at risk, and property owners can suffer huge financial losses.

So would you even take that risk?

If you don’t use the right people on an RBW section of your build and your building work does not satisfy the requirements of the Building Code. The Council or BCA can file charges and cost you huge penalties amounting up to $20,000. You are better off hiring an LBP in the first place who is well aware of the NZ building code and personally upholds high workmanship standards.

There are more than 25,000 Licensed Building Practitioners in NZ, so how do you find the right one for your RBW? In selecting a builder, you can check the LBP registry for the right kind of builder.

But look no further, Homeworld is a licensed home builder based in Whangarei.

Build quality matters. Homeworld is an LBP and a Certified Master Builder under a 10-year guarantee, so you can be rest assured that your property is covered if anything goes array.

Many homeowners in Whangarei can attest that Homeworld is the best licensed building practitioner they’ve worked with, as they have the skills and proper licences to execute development and construction jobs.

When it comes to home builders in Whangarei, don’t delay any longer, work with an experienced and professional design-build contractor and feel free to discuss everything you want your dream home to have.

For cost estimates on your home build and Restricted Building Work needs, get in touch with Homeworld at 0800 86 89 86.


Home Designs

Have a question?

We'd love to hear from you.


What Our Clients Say


Latest Post