Verify Their Licence First
Every builder in Australia doing residential work above certain thresholds must hold a builder's licence from the state regulator. Check this online before asking anything else: NSW Fair Trading, Victorian Building Authority, QBCC, Building and Energy WA. An unlicensed builder cannot legally issue a compliance certificate — and you lose all statutory protections.
10 Questions to Ask Every Builder
- 1 Can I have your builder's licence number? (Verify it online)
- 2 Do you carry public liability and workers compensation insurance?
- 3 Can you provide 3 references from projects similar to mine in the last 12 months?
- 4 Who is the nominated supervisor on this project?
- 5 How many projects are you running concurrently?
- 6 What is your availability — when can you start?
- 7 What's included in your contract price and what are provisional sums?
- 8 Who supplies materials — you or me?
- 9 What is your defect liability period and how do you handle defect claims?
- 10 Are you members of HIA or Master Builders Association?
Red Flags to Walk Away From
- 1 Can't provide a licence number or insurance certificate
- 2 Asks for a very large deposit (>20%) upfront
- 3 Pressure to sign quickly before you've had time to review the quote
- 4 Quote is significantly below all other quotes (too cheap = something missing or corners to be cut)
- 5 Poor communication during the quote process
- 6 Negative reviews or complaints on QBCC, Fair Trading, or Google that aren't addressed professionally
Check Their Financial Stability
Builder insolvency is unfortunately common in Australia. Red flags of financial difficulty: asking for unusually large progress payments, changing payment terms mid-project, suppliers contacting you directly for payment, or staff turnover. You can do a company search via ASIC to check for any notices of financial difficulty.
⚠️ Watch out: Home Warranty Insurance (mandatory for licensed builders doing work above threshold) protects you if a builder becomes insolvent. Confirm the builder takes out this insurance before construction begins.
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