Taking the plunge

July 21, 2026

Going out on your own is the easy part. Building a business that lasts takes a little more grit. Two NZCB members share the highs and lows of running their own businesses, and what they’ve learned along the way.

This article featured in the June 2026 issue of the NZCB InHouse magazine.

At some point, almost every builder thinks about going out on their own.

You’re on someone else’s site, working on someone else’s project, building someone else’s margin. Eventually, you start wondering, ‘Would I be better off working for myself?’

But going out on your own means stepping beyond the tools. Suddenly, you’re responsible not just for the quality of the work but for everything that goes along with it: pricing, deadlines, client relationships, compliance, cashflow, staff. The learning curve can be steep, and the pressure, at times, relentless.

Most builders who set up their own businesses think they’re going to get rich. Paul Riedel of Straight Up Construction Taupō – who has been in the industry long enough to know otherwise – puts it plainly: “It’s very, very unlikely that’s going to happen.”

That’s not a reason not to do it. It’s a reason to go in with your eyes open, and a plan that looks beyond landing the next job. The question isn’t really whether to make the move. It’s whether you’re ready for what comes with it.

The why

The reasons for going it alone are rarely just financial.

For Whangārei builder and NZCB regional president Josh Welsh of Welsh Construction, it came down to something more personal.

“I wanted the freedom to have a nice work-life balance rather than working for the man,” he says. “I wanted to be the man. I wanted the luxury of being able to go to work but then when things are good, being able to enjoy more time with family or friends.”

Josh got his qualification in 2022 and made a deliberate decision not to rush into anything. Rather than launching a full company straight away, he started as a sole trader, contracting to others while he found his feet.

“I talked to a lot of people and that’s what they said: do a little bit of time under someone before you dive straight in, because then if you do have any issues, you’ve still got someone there above you so it doesn’t fall solely on you,” Josh says.

For Paul, the path looked different: seven years doing his apprenticeship in the army, three years overseas, then back in New Zealand and running his own business within nine months. That business has since flourished, but the early challenges then were the same ones every new business owner faces now.

“Building up trust with clients is very hard, and I don’t think it’s something that has got any easier,” he says.

“You’re trying to convince clients to spend huge amounts – that’s the most money they’re going to spend on an item, their house – so trying to get them to trust you when you’re very young, that’s the hard part.”

The groundwork

The practical foundations to starting a business matter more than most people expect. Getting your LBP certification; establishing the right company structure; getting contracts that protect you, and insurance that covers the work – public liability and contract works catch people out more than almost anything else.

But perhaps the most important early step is finding an accountant you trust from day one.

Josh is unequivocal on that. “Find a good accountant. If you don’t get your financials in check, you can get into a lot of trouble.”

Beyond the paperwork, it’s about building the right network before you need it. Josh found that his NZCB connections gave him a head start that money couldn’t buy.

“I had the opportunity of talking to a lot of well-established businessmen through the contacts I’ve made through NZCB. They explained what to look out for. So I haven’t really been caught out by anything because I’ve had such a good network to lean on.”

The stuff nobody warns you about

But even with good preparation, there are things you can’t control. For Josh, it wasn’t the business itself that caught him out, it was the market.

“The biggest hurdle probably wasn’t the first year, but the second. The industry was still recovering from Covid, so the workflow was a bit up and down.”

Josh decided to align himself with builders who could offer steady work, trading some independence for stability while he built his foundations.

Cashflow and wearing many different hats can be hard when you’re just starting out. But then there’s the mindset trap that Paul has watched catch out more than a few good operators.

“Most of us can set up a business and earn an income, and that’s great. It’s tempting to just want bigger and bigger jobs – we think we’re going to make more and more money. But the basics have to be right. All you need to do is make enough to live off, plus some extra.”

The long game

So what should you do with that bit extra you’re hoping to earn?

Paul’s philosophy is straightforward, and it starts with a question he reckons most young builders don’t ask themselves early enough.

“Are you going to buy a flash vehicle, a flash boat, and potentially a flash house? Or are you going to invest in something?”

For him, the answer to this question has always been in property, and the logic for builders is hard to argue with.

“I still think property is the best thing for builders to invest in, because you can add value to it and look after it quite easily with all the skills you’ve got.”

He says futureproofing comes down to two things.

“One is to work for clients and to make some money. The second thing is to gain assets.” And he believes more people in the trade should consider this angle.

“Sometimes as builders we’re a bit downbeat. We’ve got to look after the subbies, we’ve got to do this, we’ve got to do that. Well, you’ve also got massive ability to create assets.

“A Ford Ranger is not an asset, by the way.”

None of it happens fast, though, and Paul cautions that many young builders might go into business for themselves expecting miracles.

“You have to be really patient. Even now, I’ve just done a development and it’s taken two years. Trying to get things across the line is so hard sometimes.

“We’ve also just finished a $2.5million project for ourselves – it’s four industrial units. But it’s taken us 25 years to get here. You don’t do that in your first year of business.”

Josh agrees building a name takes patience and perseverance.

“Building a company is good, but it’ll take you ten years to just be recognised within the community.”

His answer to business ownership has been to look at buying into an established business with a proven track record and reputation, rather than building that from scratch.

“If you can shortcut that, then you’re already ahead of the game.”

The network

Both Josh and Paul point to the advantages the NZCB community offers if you know how to make the most of it.

“It’s nice to be part of NZCB and attend the conferences and know there are people out there doing either similar stuff to you or who have had the same problems,” says Paul.

“Locally, we’ve got quite a tight-knit group of guys – about four or five of us – and we’ll ring each other up about problems. And if one of us has too much work, we can pass it on to the others.”

Paul’s advice to anyone starting out is clear: don’t just join the Association, but get actively involved in it.

“Go to meetings and rub shoulders with people that have been in the industry for 20 years. In New Zealand, a huge number of builders are going to retire in the next 10 to 15 years. There’s a massive opportunity for young guys to take that over.”

Josh says taking on the NZCB Whangārei regional presidency was a deliberate move to put himself outside his comfort zone and keep expanding his network.

“I said, I want a little bit of a challenge. I knew it would be scary, but I try and keep a positive spin on things so I don’t get so overwhelmed.”

Having the National Support Office behind him hasn’t hurt either. “If you’ve got any issues, they’ll sort them out – or they’ll know the right person for you to talk to.”

The bottom line

Out at One Tree Point Marina, Josh recently worked on a 630-square-metre home build on what had been just a bare patch of grass.

“It’s cool to see something come out of nothing. It was just a slice of grass, and now it’s a multi-million-dollar home, so it’s pretty rewarding,” says Josh.

“I’ve always been a firm believer that life throws what it wants to throw at you. So I think it’s all about how you take what comes towards you, not being afraid of opportunities, and putting yourself out there.”

Paul adds that it’s important for all potential business owners – actually, anyone in the trades – to take a step back and not to become too consumed by work and the push for success.

“Don’t just limit yourself to just getting old and tired. Find something outside of work that you’re passionate about, too. Take care of your mental health.”

Josh and Paul’s tips for new business owners:

Get your LBP qualification sorted before you go out on your own
Find a good accountant early on
Get your insurance in place from day one
Build a network of quality tradies you trust
Use your NZCB membership actively: go to meetings, talk to experienced people, gain mentors in the industry
Consider marketing and social media time and costs
Make the most of NZCB Learn’s online and in-person courses on the Toolshed
Separate your business and personal finances from the start
Think beyond income: what assets are you building alongside your business?

12.1	Part G of the Schedule contemplates that the Parties will elect who is responsible for arranging the contract works insurance. If the Parties have not made that election or if their intention is unclear, then the Owner must arrange contract works insurance if the Building Work involves changes, alterations, renovations, restoration, repairs or maintenance to existing structures, and the Builder is responsible for arranging contract works insurance if the Building Work involves constructing an entirely new stand-alone structure. Irrespective of who arranges the contract works insurance, the excess on a contract works claim is payable by the Owner. Given that such insurance typically expires on Practical Completion, the Owner must ensure that the Building is insured from that point onwards.
12.2	The amount insured must be at least as much as the Original Contract Price, plus an allowance for Owner-supplied materials, expediting expenses, removal of debris, professional fees, increased costs during construction, increased costs during reconstruction, and materials in storage (off the Project site). Unless otherwise agreed, the allowances for these items shall be those shown in Part G of the Schedule, and if no allowance is made in that Part for any item then the allowance must be reasonable in the circumstances.
12.3	The Owner must arrange contract works insurance against loss or damage to the Owner’s existing structures made available by the Owner to enable the performance of the Building Work, or existing structures adjacent to the Building, and to the Owner’s contents. This insurance must be for the full replacement value, and for consequential loss arising from loss or damage to those structures and contents.
12.4	The Builder must arrange public liability insurance for loss or damage to any property, or illness, injury or death to any person, that arises from the performance of the Building Work.
12.5*	In the event of loss or damage to any part of the Building which is not caused by the Builder or any party for whom the Builder is responsible:
	a.	The Builder is not required to carry out any restoration work at the Builder’s own expense.
	b.	The Builder will restore all loss or damage to the Building and the restoration work will be treated as a Variation.
	c.	The restoration work will be paid for from the proceeds of the contract works insurance.
	d.	If the delay in confirming insurance cover after loss or damage to the Building has occurred is such that the Builder can no longer reasonably afford to maintain spare capacity to perform the Building Work when required, the Builder may suspend the Building Work as if clause 20.2 applied, and if the Builder has not cancelled the contract in the meantime, the Builder shall not be obliged to resume the Building Work until the Builder’s commitments reasonably allow for a resumption.
12.6	If this Contract is completed on-line, and either Party has selected the option to apply for a contract works policy marketed under the “REDi” brand, then an application for such a policy will be automatically generated from the information entered into the Schedule of this Contract.
12.7	The insurance broker responsible for arranging the REDi contract works policy and the underwriter(s) to whom the application is submitted together with their respective representatives or agents are authorised to obtain from, and disclose to, any other party any information they consider relevant to the assessment of the application for the policy.
12.8	For the purpose of section 12 of the Contract and Commercial Law Act 2017, the provisions in this Part 12 are intended to create obligations enforceable by the insurance broker and the underwriter(s) referred to in clause 12.7 and their respective representatives or agents, whether or not they are parties to this Building Contract.

4.1	This is a building contract in which the total price payable for the Building Work is not fixed, specified, or known at the time of entering into the Contract. Instead, the progress payments and the Final Contract Price are to be calculated by reference to the actual costs incurred by the Builder in carrying out the Building Work, plus a Margin for the Builder’s Off-site Overheads and profit. The Parties may have chosen to enter into this form of building contract for any number of reasons, including that it is too difficult for the Builder and/or the Owner to accurately predict the precise scope of the Building Work at the outset, or the Building Work involves innovative systems or materials the cost of which is largely unknown, or to avoid the administrative burden of having to recalculate a fixed contract price each time a component of the work changes, or simply because it is their preference to do so. While this inevitably involves some uncertainty as to what the Final Contract Price will eventually amount to, it has the advantage that at the conclusion of the Building Work the Owner will have become liable to pay no more and no less than the value of the Building Work and materials the Owner has actually received.
4.2	The progress payments and the Final Contract Price payable to the Builder shall therefore be calculated by reference to the hours of work expended by the Builder and the Builder’s employees and contractors in carrying out the Building Work, plus the materials and other direct costs incurred by the Builder in carrying out the Building Work, using the rates set out in Part F of the Schedule. Onto those amounts shall then be added the Margins for the Builder’s Off-site Overheads and profit, calculated by reference to the percentages shown in Part F of the Schedule.
4.3	The Builder shall be entitled to charge for and recover all costs that the Builder would not have incurred but for the Building Work, and that are reasonably necessary to carry out the Building Work to the standard required by this Contract, plus the relevant Builder’s Margins. Those costs include (without limitation):
	a.	The Builder’s own labour and labour performed by the Builder’s employees and contractors.
	b.	Products or services from subcontractors or specialist trades.
	c.	Professional advice such as architecture and engineering.
	d.	Building materials and consumables.
	e.	Hireage of tools, plant, equipment, appliances or vehicles.
4.4	The cost of labour shall be calculated using the labour rates set out in Part F of the Schedule, or where no rates have been specified in any particular case, at the prevailing market rates for the personnel in question. The labour rates set out in Part F of the Schedule apply to normal working hours and days, and in calculating working hours no deduction shall be made for work breaks that are reasonably necessary for the consumption of food or beverages or to ensure the continued health, safety, productivity and efficiency of the relevant personnel. Where in order to comply with the Builder’s obligations under this Contract it is reasonably necessary for the Builder and/or the Builder’s employees and subcontractors to carry out Building Work outside of normal working hours or on weekends or public holidays, and the Builder is required to pay penal or overtime rates as a result, those penal or overtime rates shall be included in the calculation of the cost of the Building Work.
4.5	All the costs of the Building Work apart from labour shall be calculated by reference to the invoice issued to the Builder for the relevant item, or if no invoice was issued, by reference to what the Builder actually paid. Where such costs cannot be separately identified or accurately ascertained through timesheets, invoices or otherwise, the cost of those items shall be calculated having regard to the prevailing market price for the relevant items.
4.6	The rates set out in Part F of the Schedule shall be adjusted for any increase in the rates charged by subcontractors that could not reasonably have been foreseen by the Builder at the time this Contract is signed by the Builder, and which would otherwise have the effect of eroding the Builder’s profit margin. The Builder must be able to substantiate the increase by reference to written evidence such as quotations, communications or invoices from the relevant subcontractor, clearly demonstrating the rates that were first advised to the Builder when Part F of the Schedule was completed, and the rates subsequently charged. The Builder shall whenever reasonably practicable, resist any rate increases and procure subcontracts on the basis of fixed rates that cannot be increased during the course of the Building Work.
4.7	If any of the subcontractor rates set out in Part F of the Schedule decrease for any reason (other than rebates or discounts provided to the Builder as a result of such factors as loyalty, volume of business, enticement to form a new or long term trading relationship, or membership of a trade association or cooperative company), the decreased rate(s) shall be used in the calculation of all progress payments and the Final Contract Price from the time that the decrease takes effect.
4.8	Either prior or subsequent to the Parties entering into this Contract, the Builder may have given or may give to the Owner or the Owner’s representative(s) an estimate, indication, projection, guess, intimation, prediction or similar communication (together referred to as an “estimate”) as to what the Final Contract Price or any component of it is likely to turn out to be. It is common for building owners to request an estimate and it is common for builders, in good faith and out of a desire to be helpful, to comply with that request, or indeed to offer an estimate unsolicited. The Parties acknowledge that even the most carefully calculated estimate can in hindsight prove to be grossly pessimistic or optimistic, and it is impossible for the Builder to accurately predict what the final outcome of the Project will be, given that so many factors are outside the Builder’s control.
4.9	The Parties have chosen this form of contract rather than a fixed price contract because they have agreed that the Final Contract Price will be determined by the hours of work and the materials and other direct costs that are ultimately involved, and the margin applied to those items. By definition, those hours and those costs cannot be known in advance. The Parties therefore expressly record that any such estimate that may have been or may be provided by the Builder – assuming the Builder used the term “estimate” or some reasonably equivalent expression – shall only represent the Builder’s best guess, based on the Builder’s experience and what the Builder knows about the Project itself to date. The Builder agrees to take reasonable care in calculating any estimate that may be given, and to keep the Owner regularly informed, by the provision of periodic invoices or otherwise, of the amount paid and payable to the Builder in respect of the Building Work at any given time.
4.10	A price estimate is fundamentally different from an undertaking, promise, commitment, statement, assurance, warranty or representation (together referred to as a “representation”) that the total contract price will amount to, or will not exceed, a stated or fixed sum. If the Builder has given such a representation, then that will bind the Builder in accordance with its terms. However the representation must be reasonably inferred from the wording used. For example if either of the Parties has, without full knowledge of the legal significance, mistakenly described an estimate as a “quote” or used some other wording that might suggest a representation that would be enforceable in law, then that will not constitute a representation if the Parties did not intend it to have that effect.

13.1	Part H of the Schedule contemplates that the Parties will elect who is responsible for arranging the contract works insurance. If the Parties have not made that election or if their intention is unclear, then the Owner must arrange contract works insurance if the Building Work involves changes, alterations, renovations, restoration, repairs or maintenance to existing structures, and the Builder is responsible for arranging contract works insurance if the Building Work involves constructing an entirely new stand-alone structure. Irrespective of who arranges the contract works insurance, the excess on a contract works claim is payable by the Owner. Given that such insurance typically expires on Practical Completion, the Owner must ensure that the Building is insured from that point onwards.
13.2	The amount insured must be at least as much as the Original Contract Price, plus an allowance for Owner-supplied materials, expediting expenses, removal of debris, professional fees, increased costs during construction, increased costs during reconstruction, and materials in storage (off the Project site). Unless otherwise agreed, the allowances for these items shall be those shown in Part H of the Schedule, and if no allowance is made in that Part for any item then the allowance must be reasonable in the circumstances.
13.3	The Owner must arrange contract works insurance against loss or damage to the Owner’s existing structures made available by the Owner to enable the performance of the Building Work, or existing structures adjacent to the Building, and to the Owner’s contents. This insurance must be for the full replacement value, and for consequential loss arising from loss or damage to those structures and contents.
13.4	The Builder must arrange public liability insurance for loss or damage to any property, or illness, injury or death to any person, that arises from the performance of the Building Work.
13.5	In the event of loss or damage to any part of the Building which is not caused by the Builder or any party for whom the Builder is responsible:
		a.	The Builder is not required to carry out any restoration work at the Builder’s own expense.
		b.	The Builder will restore all loss or damage to the Building and the restoration work will be treated as a Variation.
		c.	The restoration work will be paid for from the proceeds of the contract works insurance.
		d.	If the delay in confirming insurance cover after loss or damage to the Building has occurred is such that the Builder can no longer reasonably afford to maintain spare capacity to perform the Building Work when required, the Builder may suspend the Building Work as if clause 20.2 applied, and if the Builder has not cancelled the contract in the meantime, the Builder shall not be obliged to resume the Building Work until the Builder’s commitments reasonably allow for a resumption.
13.6	If this Contract is completed on-line, and either Party has selected the option to apply for a contract works policy marketed under the “REDi” brand, then an application for such a policy will be automatically generated from the information entered into the Schedule of this Contract.
13.7	The insurance broker responsible for arranging the REDi contract works policy and the underwriter(s) to whom the application is submitted together with their respective representatives or agents are authorised to obtain from, and disclose to, any other party any information they consider relevant to the assessment of the application for the policy.
13.8	For the purpose of section 12 of the Contract and Commercial Law Act 2017, the provisions in this Part 13 are intended to create obligations enforceable by the insurance broker and the underwriter(s) referred to in clause 13.7 and their respective representatives or agents, whether or not they are parties to this Building Contract.

9.1	The Builder shall commence the Building Work within a reasonable time after:
	a.	the Contract has been signed by both parties; and
	b.	any deposit payable in accordance with clause 7.2 has been paid; and
	c.	any necessary Building Consent or resource consent or other requisite consents or licences or consent amendments have been issued.
9.2	Unless otherwise agreed in writing between the Parties, the Owner shall obtain all project information memoranda, Building Consents, resource or other consents or licences, and consent amendments required for the Building Work.
9.3	The Owner shall promptly provide all information reasonably required by the Builder to enable the Builder to comply with the Builder’s obligations under this Contract, whether prior to the commencement of, during the performance of, or after the completion of the Building Work.
9.4	The expected completion date stated in Part B of the Schedule shall be automatically extended by a reasonable time where delays arise due to:
	a.	Variations;
	b.	Any strike, lockout, or other industrial action;
	c.	Loss or damage to the Building Work other than loss or damage caused by the Builder’s breach of its obligations under this Contract;
	d.	Flood, volcanic, or seismic events;
	e.	Inclement weather;
	f.	Failure to obtain consent or approval through no fault of the Builder;
	g.	Failure by the Owner to give timely directions;
	h.	Unforeseen physical conditions;
	i.	The Builder exercising its right to suspend the Building Work under this Contract;
	j.	Act, omission or default by the Owner or any person for whose acts or omissions the Owner is responsible;
	k.	A separate contractor’s act or omission;
	l.	Unavailability or shortage of materials;
	m.	Any other event which is beyond the reasonable control of the Builder and for which the Builder is not responsible.

7.1	The Builder is not obliged to commence the Building Work until any deposit payable in accordance with clause 7.2 has been paid.
7.2	The Deposit shall be paid by the Owner upon signing the Contract. The Deposit shall be held by the Builder and applied towards payment of the final invoice, or as provided by clause 20.9 or clause 21.4. The Deposit is therefore not to be treated as a progress payment. If the final invoice is less than the Deposit then the Builder shall pay the Owner the balance of the Deposit upon issuing the final invoice.
7.3	The Owner shall make progress payments to the Builder for Building Work completed and materials supplied, including any adjustments for Provisional Sums, cost fluctuations or Variations, up to the end of the applicable period or stage of work. The payments shall be made into a bank account provided by the Builder via internet banking or direct deposit, unless the parties agree on a different payment method.
7.4	Where the parties have agreed to progress payments at completion stages (Option A in Part E of the Schedule) the Builder may issue an invoice at any time after a relevant stage of completion is reached. If a completion stage cannot be reached due to matters beyond the Builder’s reasonable control, and one month has elapsed since the previous invoice, the Builder may invoice for the proportion of that completion stage that has been reached.
7.5	Where the parties have agreed to progress payments at the end of defined periods of time (Option B in Part E of the Schedule) the Builder may issue an invoice for the Building Work completed up to the end of each such period. Any invoice issued in advance of the end of the relevant period (other than a final invoice) shall be deemed to have been issued on the last working day of that period.
7.6	The Owner must pay the invoiced amount in full within 5 Working Days of the invoice being delivered or sent to the Owner or such other time as is stated in Part F of the Schedule. If the Owner does not consider that all or any part of the invoiced amount is payable, the Owner must, within 5 Working Days after the invoice was delivered or sent to the Owner:
	a.	reply in writing to the Builder stating the amount that the Owner considers payable (the undisputed amount), and
	b.	specifying the reasons why any part of the invoiced amount is disputed, and the method in which the disputed amount has been calculated; and
	c.	pay the undisputed amount.
7.7	If the Builder’s invoice is or is accompanied by a payment claim made under the CCA, then any payment schedule as defined in section 5 of that Act must be provided to the Builder within 5 Working Days of the payment claim being served on the Owner.
7.8	The Owner shall pay progress payments on the due dates, irrespective of when the Owner’s bank or financier is prepared to advance any monies required by the Owner in order to meet the Owner’s payment obligations under this Contract. It is the Owner’s responsibility to ensure that sufficient funds are available to comply with the Owner’s payment obligations under this Contract. The issue of a Code Compliance Certificate is not a prerequisite to Practical Completion or the Builder’s entitlement to payment of the final invoice.
7.9	The Owner may at any time request the Builder to provide a receipt or statement recording or evidencing the payments received from the Owner.
7.10	The Parties will comply with their obligations (if any) under Subpart 2A of the CCA (which requires certain retention monies to be held on trust or otherwise secured) to the extent that Subpart 2A applies to this Contract. The purpose of this provision is to ensure that an adjudicator appointed under the CCA or an arbitrator appointed under the Arbitration Act 1996 has jurisdiction to make a determination in respect of any such obligations, as if they were expressly incorporated into this Contract.

Taking the plunge

The why

The groundwork

The stuff nobody warns you about

The long game

The network

The bottom line

Josh and Paul’s tips for new business owners:

Latest News

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What does a Homestar Rating mean for your home?

The 10 most common issues found during a building inspection in New Zealand

The complete guide to building a house in New Zealand

Thinking about adding a room to your home? Start here

How to start a building business: A builder’s guide to going out on your own

Being a NZCB member is good for business.

The website is undergoing maintenace, please come back later.

Make a technical enquiry

Taking the plunge

The why

The groundwork

The stuff nobody warns you about

The long game

The network

The bottom line

Josh and Paul’s tips for new business owners:

Latest News

Why Builders Should Join a Membership Association

What does a Homestar Rating mean for your home?

The 10 most common issues found during a building inspection in New Zealand

The complete guide to building a house in New Zealand

Thinking about adding a room to your home? Start here

How to start a building business: A builder’s guide to going out on your own

Being a NZCB member is good for business.

The website is undergoing maintenace, please come back later.

12 Insurance

4. Calculation of Progress Payments & Final Contract Price

13 Insurance

9. Commencement and Completion of Work

Make a technical enquiry

7 Invoices and payments

4 Calculation of Progress Payments & Final Contract Price

6. Invoices and Payments

8 Commencement and Completion of Work

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