Aussie homeowners love to renovate and rebuild, which is why our property development industry stands strong even in regional areas like here in Cobram.
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But with quality building materials inflating in value due to import and export tariffs, and the construction industry still in the midst of its ongoing skilled labour shortage, vetting your building company before you hire is growing increasingly important.
For most homeowners, however, a lack of knowledge surrounding construction and what green flags to look out for when hiring a builder can inspire some apprehension around every build or renovation.
So how can you make sure your next building company delivers quality work?
Here, we’ve outlined a few key questions you should ask yourself when vetting a builder or a building company.
Be sure to gather the answers to these questions well before you break ground on your next construction project.
1. Are they licensed and insured?
The most immediate sign to avoid a building company is if they have failed to disclose their licensing, accreditation and insurance information on their website.
At a minimum, all Victorian building companies must be registered with the Victorian Building Authority (VBA), with all relevant regulatory licenses issued by the VBA also being outlined on their website for each member of staff.
In the context of insurance, building companies should also be equipped with public liability cover (or PL insurance) that’s designed to protect them in the event that injuries or accidents occur on the worksites that they’ll be managing.
Workers’ compensation insurance is also essential for building companies.
If both this and PL insurance cover is not in place, then your construction project may accrue unforeseen financial liabilities, the costs of which may even be passed along to you as the client.
Other trust signals to look out for include registration and membership with the Housing Industry Association (HIA) or the Master Builders Association (MBA).
Membership to these industry bodies is typically indicative of a commitment to professional standards and ongoing training.
Similarly, Certification to ISO Standards like ISO 9001:2015 can also speak to a higher quality output from a building company.
2. Are they experienced?
What project do you have in mind? A new home, built from the ground up? Or, perhaps you’re adding a second storey? Are you renovating a property that’s heritage-listed?
Determining what the scope of your project is can naturally help you find a builder that’s equipped with all the right specialised experience to complete your works with the utmost care and professionalism.
Our tip? Request a case study of a recent project that’s similar to yours.
A well-presented case study will walk you through their project approach, including how they deal with identified risks and even any unforeseen challenges.
This case study should also speak to the company’s ability to navigate red tape, which is critical for keeping your unique building project on track.
3. What’s their communication style?
In an ideal world, honest and transparent communication would be considered to be the bare minimum.
However, for specialised service providers, communicating complicated concepts like industry processes or even cost breakdowns for their services, can be difficult.
And if you can’t communicate clearly with your builders, it’s absolutely fair for you to look elsewhere for a company that’s better able to maintain your ideal communication style.
Thankfully in most cases, your initial contact with a prospective building company should give you an idea for how they communicate.
Prompt email responses? Clear expectations? When stumped with a challenging question, are they upfront?
A green communication flag? A building company that’s thorough and generous with documentation.
Think detailed quotes, a timeline with key milestones, and a plain-English contract that outlines everything you need to know.
Few things will derail your confidence quicker than poor professional communication.
If you’re not comfortable with the way a building company is managing their comms with you, you should feel free to find a service provider that better aligns with your expectations here – even if you’ve already gone so far as to receive quotes from that company.
Your confidence and peace of mind is always worth prioritising.
4. Do they have positive reviews or client testimonials?
Accreditation, experience, and exceptional communication skills typically amount to glowing customer references.
And the more references a building company earns, the more its reputation grows.
This is where the value of real-world feedback sparkles.
The insights you gain from reading client testimonials or even by speaking directly with past clients offer so much around how a builder manages change, delay, and timelines.
Were there unexpected costs? Would they hire that company again? Ask as many questions as you need.
And if you do want to speak with past clients, simply request some contact info from your shortlisted building companies.
You’ll never know if you don’t ask, plus a building company with nothing to hide will generally always be happy to connect you with past clients, so long as those clients have consented to providing you with a personalised reference of their services.
5. Do they have a quality warranty and a strong portfolio?
You’ve probably noticed the trickle-down nature of this list—everything is connected.
If a building company is ticking all the above boxes, then it stands to reason they will deliver quality work.
Quality is not just about what they’re building but how they’re building it.
Reliable suppliers, award-winning tradespeople, and a water-tight quality-control process; these are all markers that a building company has pride in what they build.
Another marker is warranty coverage.
A reputable builder will usually offer a structural warranty.
Get this in writing and make sure you understand what’s included.
Finally, quality work speaks for itself in the form of strong portfolios, galleries, and project overviews on their website.
If your shortlisted building companies feel comfortable showcasing their work in-depth online, then you can expect that they would be maintaining quality standards at every phase of their projects.
The devil is in the details, after all.
Hire your next contractor with confidence
We’ve given you five things to look for, but honestly, these questions are also just a starting point.
The size and complexity of your building project will naturally also dictate all the things you must consider to ensure it’s successful.
It’s an important decision; we can’t understate this.
So, take your time and be as meticulous as possible when finding the right builders for you.
And trust your gut.
Instinct has a way of guiding you right, so if early conversations with a building company feel off, they probably are.
Choose wisely and you’ll set the foundation for a brilliant, stress-free reno, rebuild, or new build project.
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