Why “Good Enough” Is Costing Construction Millions

In New Zealand’s construction industry, the idea of “good enough” or “I’ll just increase my contingency” isn’t as harmless as most would think – it’s actually really expensive.  

It shows up in overpriced estimates, incomplete take-offs, and either missed materials – or too much waste on a construction site. Putting in some fast guesswork might save time upfront, but the data shows it’s driving delays, defects, and millions in avoidable costs. 

Construction is a major part of New Zealand’s economy. It contributes around 7 – 8% to the national GDP, and has one of the largest workforces in the country, employing nearly 300,000 people.    

But productivity hasn’t kept pace. 

According to a government report by Chris Penk in 2024, construction sector productivity has remained largely unchanged since 1985. Over the same period, other industries have improved significantly. At the same time, builds are taking longer. The average time to complete a standalone house increased from around 13 months in 2013 to nearly 19 months in recent years. 

That gap (flat productivity and longer build times) points to one thing: inefficiency. One of the clearest signs of this inefficiency is rework. 

Research from BRANZ found that up to 92% of new homes have at least one defect at completion. These defects range from minor issues to problems that require significant rework. Across the industry, the cost adds up. Estimates reported by RNZ put the annual cost of defective building work at around $2.5 billion. 

That’s not even driven by material shortages or market conditions, it’s just the result of errors, omissions, and poor coordination. 

Where the Problem Starts: Construction Estimating 

Many of these issues begin before the build even starts, at the construction estimating phase. When the estimating is rushed or incomplete, it causes a chain reaction of problems:  

• An increase in variations due to missed scope 

• Cost of building is under-estimated causing reduced profit  

• Lack of certainty leads to over-ordering, waste on site, and increased build costs  

There are clear and consistent causes for these issues. The “near enough is good enough” attitude, the outdated legacy systems used for estimating, and in some cases a complete lack of adequate estimating tools at all. These are issues regularly found throughout the fragmented construction industry. 

New Zealand’s construction sector is made up largely of small builders, many of which have limited capacity to invest in systems, processes, or dedicated estimating resources. At the same time, cost pressures have been significant, with construction costs rising roughly 40% since 2019. 

This creates a tough environment:  

• Quotes need to go out quickly  

• Huge competition in a tight construction market  

• There’s little room for error 

So “good enough” becomes the default, not because it works, but because it’s fast.  

The consequences show up clearly in project performance. Longer build times increase labour spend, defects create rework and unhappy clients, and cost overruns erode margin. Even small inaccuracies early on can escalate into major financial impacts by the time a project is complete. Improving outcomes doesn’t require more effort, it requires more accuracy upfront. 

Better construction estimating and planning means: 

• Complete and consistent take-offs 

• Fewer assumptions carried into construction 

• Better alignment between design, pricing, and delivery 

Reducing defects, delays, and cost overruns starts with getting the fundamentals right early. 

The Bottom Line 

The data is clear. New Zealand construction isn’t struggling because of a lack of work; it’s struggling with how that work is planned and delivered. Flat productivity, longer build times, and billions spent on defects all point to the same issue. “Good enough” isn’t saving time or money – it’s costing both.