In New Zealand, completely refusing to pay a tradesman or withholding full payment arbitrarily is illegal and exposes you to legal action, debt collection agencies, or a claim in the Disputes Tribunal. You can only withhold payment if there is a genuine, legally justified dispute—such as incomplete work, severe defects, or unauthorized variations exceeding agreed contract terms—and even then, you should only withhold a reasonable sum proportionate to the disputed work. Under the Construction Contracts Act, contractors have formal dispute adjudication rights, so open communication or mediation is always legally safer than unilateral non-payment.
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