Short guides for getting paid and staying out of trouble.
Plain-English, New Zealand-specific, and free. General information, not legal advice; for a real dispute, talk to your trade association or a lawyer.
In this section
- How to chase an unpaid invoice
- Final demand letter template
- How to check a builder before you subcontract
- Deposits and progress payments
- Taking a customer to the Disputes Tribunal
- Terms of trade: the five lines every tradie needs
- How to invite customers so they say yes
- Selling a house: what the logbook gives a buyer
How to chase an unpaid invoice
Reminders, final demand, then a collector: what to send and when.
Most unpaid invoices aren't a refusal to pay, they're a forgotten email. Work through the steps in order and keep every message polite and short. Keep copies.
- Day 1 after the due date: a friendly reminderReply to your own invoice email: “Hi Sarah, just checking this one didn't get missed. Invoice 1042 for $380 was due 10 October. Here's the link to pay.” Most invoices get paid here.
- Day 7: a second reminder, with a phone callEmail again and phone them. Ask if there's a problem with the work. If there is, deal with that first. If not, agree a date.
- Day 14: a final demandA dated letter (email is fine) stating the amount, the invoice number, a seven-day deadline, and that the account will go to a collection agency or the Disputes Tribunal if it isn't paid. Use the template below.
- Day 21: act on what you saidFor amounts up to $30,000, the Disputes Tribunal is cheap and you don't need a lawyer. For smaller sums a collection agency may be simpler. Pick one and do it.
What not to do: don't threaten anything you won't do, don't add charges your terms of trade don't allow, and don't post about the customer online. It weakens your case and can cost you more than the invoice.
Final demand letter template
A plain seven-day letter you can send today.
Copy this, fill in the brackets, send it by email and keep a copy. Date it.
[Date]
Dear [Customer name],
FINAL DEMAND: Invoice [number]
Our records show [$ amount] is still owing on invoice [number], dated [date], for [brief description of the work], despite our reminders on [dates].
Please pay the full amount by [date seven days from today]. Payment details are on the invoice.
If payment is not received by that date, the account will be passed to a debt collection agency or filed with the Disputes Tribunal without further notice, and collection costs may be added as set out in our terms of trade.
If you have already paid, thank you, and please ignore this letter. If there is a problem with the work, please phone me on [number] so we can sort it out.
Yours sincerely,
[Your name]
[Business name]
How to check a builder before you subcontract
Five minutes on the Companies Office that can save you a year of chasing.
- How old is the company? New companies aren't bad, but a company registered three months ago with a director who has two liquidations behind them is a pattern. Ask for a deposit or progress payments.
- Who are the directors, and what else have they run? Search the director's name on the Companies Office. Liquidated companies with the same director and a similar name are the classic phoenix sign.
- Are annual returns up to date? Companies that stop filing are sometimes winding down. Ask about it before you start.
- Who are you contracting with? Make sure the name on your quote matches the registered company name exactly. A quote to “Coastline Builds” isn't a contract with Coastline Builds Ltd.
- What do other subbies say? On Kepuro, verified subcontractors share whether they were paid on time and how fast. Only good news is shown, so silence is a signal too.
- Agree payment terms in writing. Progress payments at defined stages, a seven-day term, and what happens if a payment is late. Put it on the quote.
Deposits and progress payments
Wording you can paste into a quote, and when to use it.
A deposit protects you against a customer who disappears; progress payments protect you against a job that drags on. Neither is rude, as long as it's on the quote before anyone says yes.
Deposit wording
“A deposit of [20]% ($[amount]) is payable on acceptance of this quote and before materials are ordered. The balance is due within 7 days of completion.”
Progress payment wording
“This job is invoiced in stages: [30]% on acceptance, [40]% at [stage, e.g. first fix], and the balance within 7 days of completion. Each stage is due within 7 days of invoice.”
When to ask: any job over about $1,000 for a customer you don't know; any job with materials you have to buy up front; any company that's new, has a director with past liquidations, or has overdue annual returns. For Trusted and Gold Kepuro members many tradies skip the deposit on smaller jobs; that's your call and your offer.
Deposits for building work: under the Building Act, residential building work over $30,000 needs a written contract and a checklist. If that's you, use the standard contracts from your trade association.
Taking a customer to the Disputes Tribunal
What it costs, what to bring, and what to expect.
- Limit: claims up to $30,000. No lawyers in the hearing, so it's level ground.
- Cost: a filing fee of roughly $59 to $234 depending on the amount, which you can ask to have added to the award.
- Bring: the quote, the invoice, every reminder you sent, photos of the finished work, and your terms of trade. Put them in date order with a one-page summary on top.
- Timing: hearings are typically a few weeks to a couple of months after filing. Many customers pay as soon as they receive the notice.
- After: the order is enforceable through the District Court if they still don't pay.
Terms of trade: the five lines every tradie needs
Put these on every quote and most problems never happen.
- Payment term“Payment is due within 7 days of invoice.” (Not “on the 20th of the month following”, unless you enjoy waiting seven weeks.)
- Deposit and progress paymentsSee the deposit guide for wording. Only if you need it.
- Late payment“Overdue accounts may be referred to a collection agency, and any costs of recovery will be added to the amount owing.”
- Variations“Any work beyond this quote will be agreed in writing (email is fine) before it's done, and charged at $[rate] per hour plus materials.”
- Ownership of goods“Materials remain the property of [business] until paid for in full.”
How to invite customers so they say yes
The three-line message that works, and when to send it.
Send the invitation the day the invoice is paid, while the job is fresh and they're pleased. Not before: Kepuro only counts paid jobs, and an invitation before payment looks like a nudge.
“Thanks for the prompt payment, Sarah. I use Kepuro to keep a record of good customers, and I'd like to add you. You'd get a free home logbook with the certificate for today's job in it, faster quotes, and member deals. It's free and takes a minute. Here's the link.”
- Lead with what they get: the logbook with their certificate in it is the thing people say yes to.
- Say it's free and that only good news is ever shown. That's the question in their head.
- Kepuro sends the invitation by email from you, never a text.
- Don't chase. One invitation, one reminder a week later, then leave it. Some people won't, and that's fine.
Selling a house: what the logbook gives a buyer
Certificates, warranties and the history of the home, in one link.
Buyers ask three things: what's been done, who did it, and is there paperwork. A Kepuro home logbook answers all three.
- Every verified job with the date, the trade, and whether a certificate was issued.
- The certificates themselves: electrical and gas certificates of compliance, plumbing certificates, treatment reports, warranties, with their expiry dates.
- What's due next: the heat pump service, the pest treatment, the roof check, so the buyer knows what to keep up.
- A share link you can give your agent or a buyer, which you can switch off after settlement.
More guides when Kepuro opens.
Members get the final-demand letter and the Disputes Tribunal steps built into the app. Join the waitlist to hear when.
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