For owner-builders and homeowners

Check your builder before you hand over a deposit.

Building or renovating is usually the biggest payment you’ll ever make to a business you’ve just met. A few minutes on the public record first can save a lot of grief.

When to check

Before you sign the building contract.
Before you pay the deposit.
Before each large progress payment on a long build, in case something has changed.
Before hiring any trade directly as an owner-builder.

What to look for in your report

Licence status: The licence should be current, cover the type of work, and be held by the same business named on your contract.
Insolvency notices: A liquidation, administration or winding-up application is a reason to stop and get advice before paying anything.
Court and tribunal decisions: Home building disputes in NCAT or ACAT show how past jobs went wrong, and how the builder responded.
Disciplinary action: Conditions, suspensions and penalty notices recorded against the licence.
Directors’ other companies: Directors linked to a string of failed companies is a classic phoenix-company warning sign.

Red flags

The business does not hold a licence. Note that a business may hold its licence under a related company.
A company registered only recently, run by directors whose previous companies went into liquidation.

What a report won’t cover

A report shows what’s on the public record. Do these as well.

Check the deposit is within your state’s limit, and don’t pay anything before the contract is signed and any required insurance is in place.
Only pay into an account in the name of the business on your contract. Treat requests for cash, a personal account or a different business name as a warning sign.
Ask for the home building insurance certificate before paying a deposit, where your state requires it.
Speak to two or three recent clients and, if you can, see their finished work.
Have the contract reviewed before you sign it.

Give your builder a once-over.

Free report. NSW and ACT builders.