Rotorua District residential building consents are down on last year, with 60 in the year to June at an average value of $308,329, down from 98 in 2013 at an average value of $275,601, according to Statistics New Zealand.
Consents for alterations are up on last year, with 408 at an average value of $26,909, up from 381 at an average value of $29,670.
Master Builders Association Rotorua chairman Bill Clement said most builders used written contracts. "You have to have a set of ground rules when you are doing a job," he said.
"A house is somebody's biggest investment ... but it's not only there to protect the client, but to protect the builder as well."
Mr Clement said most local builders kept up with rules and regulations and continuously upskilled themselves.
Cowboys wouldn't last long in a small city such as Rotorua, he said.
"We live here and our reputations rest on what people think," he said.
"Word gets around pretty smartly. Everybody wants to do the right thing because if you don't, you are finished."
He said although there had been some uncertainty around the new legislation and what it was likely to contain, it shouldn't result in too many problems for any local contractors.
"We've got a good bunch of builders in town that are quite happy to toe the line."
Rotorua builder Ritchie Conroy agreed, saying his firm was already abiding by the requirements.
"It should be practice anyway, I don't know why you would do it without that because it protects both of you."
Dr Smith said the new requirements would reinforce the good practice of many building repairers while "constraining cowboys only interested in making a quick buck".
The legislation is part of a wider programme of regulations introduced in the wake of the leaky buildings problem and the Canterbury earthquakes.