Reading a builders report together at the table - how to read a builders report NZ

How to Read a Builders Report: An Inspector Explains

Most builders reports get read multiple times: first in a panic when the report hits the inbox and is opened on a mobile phone, then again properly, and sometimes several more times while the buyer tries to understand exactly what the building inspector is saying.

Building reports are often associated with technical language, vague explanations and comments that can appear contradictory when read out of context. Pro-Spect reports are deliberately written in clear, consistent language, explaining what was observed and what action is recommended.

Even a well-written report can feel overwhelming when it concerns one of the biggest purchases most people will ever make. This guide explains how to read a builders report, how the information is organised and how the summary, detailed findings and recommendations relate to one another.

As an Accredited Building Surveyor, I have prepared many residential building reports. Before moving into building surveying, I spent years repairing the types of defects described in these reports, including removing cladding from leaky homes and replacing decayed framing. This combination of surveying knowledge and practical construction experience influences how observations are assessed and explained in every Pro-Spect report.

Reading a builders report together at the table - how to read a builders report NZ

What a Builders Report Tells You (and What It Doesn’t)

A builders report is a visual, non-invasive assessment of a property’s condition at the time of the inspection. When completed in accordance with NZS 4306:2005, it covers the accessible parts of the site, subfloor, exterior, interior, roof exterior, roof space and services.

Most reports prepared under NZS 4306:2005 are written on an exceptions or information basis, sometimes described as reporting in the negative. This means the building surveyor assesses the required areas but reports the significant defects, particular attributes, gradual deterioration and significant maintenance requirements identified during the inspection.

The report does not need to list every item found to be in acceptable condition or commend the builder for work that appears satisfactory. If a component is not mentioned, this generally means no reportable exception was identified during the visual inspection, subject to the scope and accessibility recorded in the report.

A builders report describes the observed condition of the property. It does not decide whether you should purchase it. For more information about the inspection itself, see what a pre-purchase building inspection checks.

The Anatomy of a Builders Inspection Report

A Pro-Spect building inspection report is divided into a summary, detailed inspection sections, photographs, recommendations and a Certificate of Inspection.

The Certificate of Inspection confirms which of the eight principal inspection areas were inspected and that the inspection was carried out in accordance with NZS 4306:2005.

The summary provides an overview of the property’s general condition and key findings, but it does not replace the detailed report. Other items recorded within the report may also be significant to you, so start with the summary and then read every detailed section carefully.

Read each observation together with its heading, photograph and recommendation. Removing one sentence from its surrounding context can change how the observation appears.

You can learn more about Pro-Spect’s reporting process on our building inspection page.

Translating Builder-Speak: Common Terms Explained

Building surveyors use specific language to distinguish between an observation, a defect and a recommendation.

  • Serviceable: The item was performing its intended function at the time of the inspection. It does not mean the item is new or maintenance-free.
  • Consistent with age: The observed condition is typical of a component of that age and type.
  • Monitor: No immediate action has been specified, but the item should be observed for further change or deterioration.
  • Minor fault or defect: A reported issue that does not meet the report’s definition of a significant fault or defect.
  • Significant fault or defect: A fault or defect meeting the criteria used by NZS 4306:2005 and defined within the report.
  • Further investigation required: The building surveyor observed something that could not be fully assessed through a visual, non-invasive inspection. The complete recommendation should identify the appropriate next step.
  • Weathertightness risk: An observable design, construction detail or exposure feature associated with an increased potential for moisture entry.

These terms should always be read within the full inspection comment rather than treated as standalone conclusions.

Understanding Weathertightness Risk

A builders report completed in accordance with NZS 4306:2005 should consider the property’s observable weathertightness risk features. This consideration is not limited to properties from a particular construction period or homes with a particular cladding type.

NZS 4306:2005 applies to residential buildings generally. A property’s age provides useful context, but it does not remove the need to consider its design, construction and exposure.

Observable weathertightness risk features can include wind exposure, the number of storeys, roof-to-wall intersections, limited or absent eaves, building-envelope complexity and deck design. The building surveyor may also comment on visible cladding clearances, penetrations, flashings, junctions and other relevant construction details.

A weathertightness risk feature does not mean that a house is a leaky home or that moisture damage is present. It means the property has one or more design, construction or exposure features that may increase its susceptibility to moisture entry. Generally, the more risk features a property has, the greater the potential for weathertightness issues.

The importance of reporting observable weathertightness risks was considered in Hepburn v Cunningham Contracts Ltd [2013] NZHC 210. The High Court gave NZS 4306:2005 considerable weight when considering the building inspector’s duties. The decision included the need to identify significant observable weathertightness risk factors and communicate their implications, even when there was no observable moisture entry at the time. The case is discussed in this article about the High Court ruling over a leaky home.

In a Pro-Spect report, observable weathertightness risk features are considered regardless of the property’s age. These features should be read alongside any moisture readings, observations, photographs and recommendations recorded elsewhere in the report.

Where additional assessment is recommended in relation to weathertightness concerns, Pro-Spect is suitably qualified to provide invasive moisture testing and weathertightness investigations.

Inspector on the roof of a house - checking cladding, flashings and fixings during a building inspection

“Further Investigation”: What to Do Next

This wording means the building surveyor has identified an observation that cannot be fully explained or assessed within the scope of a visual, non-invasive inspection.

Read the complete recommendation carefully. It should identify the type of additional investigation or specialist assessment recommended. Depending on the observation, this could involve a qualified electrician, plumber, structural engineer, roofing contractor or suitably experienced weathertightness specialist.

The recommendation does not confirm what the additional investigation will find. It records that more information is required before the observation can be properly assessed.

If you are uncertain about the wording, contact the building surveyor who prepared the report and ask them to explain the observation and recommendation within the scope of the inspection.

What a Good NZ Builders Report Looks Like

Quick quality checklist for the report itself: carried out by a BOINZ accredited surveyor, compliant with NZS 4306:2005, written in plain language, accepted by banks and insurers. Government guidance at settled.govt.nz says the same thing in more official language: an accredited inspector and a written report are non-negotiable parts of due diligence.

Frequently Asked Questions

What would fail a building inspection?

A pre-purchase building inspection does not have a pass or fail result. It records the property’s observed condition, significant defects, particular attributes, gradual deterioration and significant maintenance requirements. The report provides information for your due diligence, but the decision to proceed should be made with advice from your solicitor and any other relevant specialists. Learn more about building reports and due diligence.

What does a builders report tell you?

A builders report describes the observed condition of the accessible areas and components included within the inspection scope. This generally covers the site, subfloor, exterior, interior, roof exterior, roof space and visible services. A Pro-Spect report also includes photographs and non-invasive moisture readings at selected locations, along with recommendations where further investigation is appropriate. See what our pre-purchase building inspection checks.

How much should a builders report cost?

Building report prices vary considerably. A basic report from a house inspector without recognised accreditation or professional institute membership may cost only a few hundred dollars. A comprehensive building survey completed by an Accredited Building Surveyor will generally cost around $700 to more than $1,000 for a three-bedroom home, depending on its age, construction type, complexity, location and accessibility.

The difference in cost is negligible when considered against the value of the property and the difference in qualifications, inspection scope, professional accountability and quality of reporting provided. When comparing prices, also compare the surveyor’s professional institute membership, professional indemnity insurance and compliance with NZS 4306:2005.

See our building inspection pricing guide.

Can I use the vendor’s builders report?

A vendor-supplied report may provide useful information, but it was commissioned for the vendor. As the buyer, you will generally have no contractual relationship with the building surveyor who prepared it and may not have the same right to rely on it if something was missed. Commissioning your own independent report establishes a direct professional relationship between you and the building surveyor. Settled.govt.nz provides further guidance about relying on a seller’s building report.

Is a builders report worth it on a new build?

Yes. New and recently constructed homes can still contain visible defects, incomplete work and workmanship concerns. A new-build or handover inspection provides an independent record of the property’s condition before or around completion, while a pre-purchase inspection can identify observable concerns in a recently constructed home being offered for sale.

The value is in bringing these issues to light before you purchase the property. This gives you the opportunity to request that the current vendor addresses any available warranty or workmanship claims, and arranges the necessary repairs before settlement, rather than leaving you to deal with them after taking ownership.

New Zealand residential building work has an automatic 12-month defect repair period. Defects identified during this period should be notified to the main contractor in writing. The assessment may also refer to the Government’s Guide to tolerances, materials and workmanship in new residential construction. More information about the statutory period is available from Building Performance.

Can I see a sample report before booking?

Of course. Get in touch and we will send you an example so you know exactly what you are paying for.

The Short Version

Start with the summary, but do not stop there. Read every detailed section, including the photographs and recommendations.

Remember that the report is generally written on an exceptions or information basis. It focuses on reportable observations rather than listing everything found to be in an acceptable condition.

Read each finding in context, pay attention to any recommended further investigation and contact the building surveyor if you need clarification about the wording used. If that is me, even better.

Booking an inspection in Tauranga or the Bay of Plenty? Call 07 985 9532 or book online.