How to choose the right builder for you? Our top tips.
\nSo you\u2019ve decided to take the plunge and build your dream home and choosing the right home builder is one of the first, and most important, decisions you\u2019ll make. Picking the right builder for your new home can be time-consuming. But finding one you like and trust, and who understands your creative vision, has the potential to make or break the entire experience for you. So it\u2019s something you don\u2019t want to rush.
\nIn fact, taking the time to really explore and research your options is vital when it comes to signing a contract with the right home builder, to ensure that you have a positive building experience and that the final project is exactly what you\u2019d envisioned.\u00a0
\nRead on for our guide about what factors you should consider before selecting a builder for the job.
\nQuotes and budgets.
\nAs you\u2019d expect, there are specialist builders for first-time buyer homes, mid-range project homes, top-end custom designs, and luxury builders for those of us with very high budgets. So, there\u2019s little point approaching a first-home builder to build a custom home because their budget, repeat design and business model will most likely prevent them from being able to be competitive in a one-off build. Similarly, a high-end home builder just won\u2019t want to build a small home where their margin is smaller than a more luxurious product.
\nSo do your research first, narrow the field, and only then start asking for prices from builders who are appropriate for your project. And remember \u2013 cheapest isn\u2019t always best.
\nReputation and references
\nWhen it comes to getting the best builder, making sure they have a positive reputation and great references is important. Many clients want the perceived security of a household name, with the company\u2019s volume of completed homes guiding their choice, but you\u2019re going to be paying your builder thousands to construct your home. So, a few hours spent doing some extra reconnaissance is more than worth your while.
\nOften, choosing a builder that has excellent word-of-mouth and online referrals is better than choosing the big-deal household name with perceived security that might not actually provide you with the same level of service.
\nSo, a great place to start is to read reviews and speak to past or current clients about builders on your short list, as some of the best information to assist you in selecting one can be gleaned by speaking to people who\u2019ve dealt with them before.
\nA good builder should have no issue with letting you speak to customers, and they should also be able to supply good, verifiable references. Generally, it\u2019s best to ask to speak with their most current clients, particularly those in the middle of the building stage, as you\u2019ll likely get a more balanced opinion of the builder, specifically when it comes to communication and how efficient they are in the construction process.
\nIt’s also worth asking for references from architects or tradies who\u2019ve dealt with them previously to gauge how well they manage projects and work sites. Building designers, architects and tradies often work with the same trusted builders on a regular basis. So their recommendation is usually a great place to start.
\nIf you can, check out a builder\u2019s previous jobs and, if possible, have a physical walk-through of a home they\u2019ve built. Even consulting an engineer to walk through the property may be worth the cost if you\u2019re serious about choosing the right builder. There\u2019s also nothing to stop you knocking on the door of people whose homes have been built by your prospective builder and asking for their opinion. There\u2019s every chance this will be the best and most honest information you\u2019ll receive.
\nAs well as asking about the overall experience, the quality of the build, how long it took and issues that arose, ask about the follow-up service. Were post-build problems dealt with adequately and in a timely way?
\nLicences and insurance
\nWhether you\u2019re going through a home builder or you\u2019re designing your own home with help from an architect, it\u2019s important that you choose a builder that is licenced, registered and insured. Definitely be wary of builders that either refuse or don\u2019t make it clear upfront that they\u2019re legally permitted to be involved in building and construction.
\nSome builders\u2019 licences or registrations may have simply expired, or they may have had their licences revoked but are still involved in the building industry. One thing is for certain \u2013 regulators are historically slow at catching dodgy builders. So, it\u2019s good to be one step ahead. As a minimum, make sure your builder has current Public Liability Insurance and Home Building Compensation (HBC), known as Domestic Building Insurance in Victoria, and ask to sight copies of current certification.
\nAs a good starting point, check to see if your builder is registered by asking the Housing Industry of Australia (HIA) or the Master Builders of Australia (MBA) or their list of members. Plus, you\u2019ll be also able to find a list of builders that are licensed and insured from Consumer Affairs Victoria.
\nFinancial stability
\nIn today\u2019s highly competitive market, some builders may cut prices to keep busy. While that might look good on paper, cut prices may not be sustainable in the long term because every business needs to make money to remain stable into the future. Bottom line? You may have got the best price in town, but if the builder is not around to build for you it\u2019s a very hollow victory.
\nA good way to check a builder\u2019s financial viability is to source a credit reference from any number of online agencies. It\u2019s not a guarantee to performance, but it\u2019s one of the best sources of information about the financial strength of a company. Also pay particular care to check if your chosen builder pays their suppliers and tradies on time and if they have a good rating in the industry.
\nHome style and preferences
\nYou\u2019ve probably got some idea about the type and style of home you\u2019re hoping to build, which means it\u2019s important to find a builder whose skills best align with your plans.
\nMany builders specialise in certain styles. For example, if you\u2019re in the hunt for an extensive five-bedroom home, best to steer clear of a small-project home builder who specialises in single-storey display homes as they probably won\u2019t have the staff or trades to move onto a complex construction. Similarly, if you\u2019re very eco-friendly and want a lot of sustainable features, look for a specialist builder who has experience in that area. Choosing the wrong builder for your home type can mean they may not have the staff or trades to be able to complete your project and will be scrambling to organise themselves.\u00a0
\nThe design of your home is also something to consider. If you want to build a modernist home in a simplistic style, don\u2019t opt for a builder that specialises in rural farmhouses. Figure out what it is you want exactly for your home, and then choose a home builder that can meet your specific needs.\u00a0
\nIf you have a particular type of home in mind, ask the builder how many homes they have built in that style. The company may have a beautiful portfolio of drawn designs but have never built the one you want. Checking is usually easy, as most builders will have their projects displayed on their websites, or they\u2019ll be able to provide you with a catalogue of homes they\u2019ve built previously, or you can visit display villages featuring some of their current designs
\nLocation
\nBuilders usually have a preferred area they specialise in building in. So choosing a home builder with a proven portfolio of projects in the area you plan to build in, can bring a number of benefits.
\nFor a start, your home builder\u2019s pricing will likely be most competitive if you build in a certain area, so see whether your home builder has a sample of homes in the suburb where you want to live. Forcing a builder to build where they aren\u2019t comfortable can bring issues like extra costs and possible delays on site. When putting a quote together, a home builder will usually add contingency money in case the project increases. You don\u2019t want to be paying for a builder\u2019s uncertainty or lack of knowledge regarding an area, so choose a builder that is confident in the area you\u2019re building in.\u00a0
\nWhen putting a price together, a builder outside his area will typically add a contingency in case he needs it. If you don\u2019t want to pay for a builder\u2019s nervousness, find a company that\u2019s happy and well-represented in the area you want to live in.
\nWhat\u2019s the timeframe?
\nAnyone who\u2019s built a house knows that 99% of the time the project will take longer than anticipated. So getting the most accurate timeframe possible from your shortlist of builders should be a key factor in determining who ultimately gets the job. Make sure to ask how long they anticipate the project will take, and also when they\u2019ll be able to start, as every delay can cost you money. Most people will be paying rent somewhere or paying another mortgage until their new house is finished, so you\u2019ve got to factor in extra months of costs if one builder says it\u2019s going to take longer.
\nPersonality and working relationships
\nYour relationship with your builder is critical, considering you\u2019ll be dealing with them dozens of times over many months. So, it\u2019s important to think about the relationship you want to develop with them and take note of how they communicate with you during those initial exchanges.
\nSome clients need to be present on site regularly and want to build up a rapport with the supervisor in charge. Most bigger builders change supervisors regularly and some clients can find that frustrating. So, if you want to be more closely involved in the project, a small builder may provide a more personal service. On the other hand, if you\u2019re content to sit back and let things happen, developing a close relationship won\u2019t be as much of a priority and choosing a builder for personal service is less important. Either way, ddon\u2019t be afraid to ask who your direct contact person is going to be or who is the site manager you\u2019re going to deal with if you have any questions or concerns. But whichever way you go, it\u2019s vital to get the right builder for your project who will deliver what you want, for the price you want, and with the level of service you need.
\nHow do I make sure I don\u2019t get ripped off?
\nWhen you\u2019re spending hundreds of thousands of dollars on building or extending a property, you\u2019ll want to do your homework.
\nBefore deciding on a builder to use when building a new home or doing renovations, there are some key questions to ask that will give you a thorough understanding of whether or not the builder is the right fit for your project.\u00a0<\/p>\n
What are some examples of previous projects they\u2019ve worked on?
\nHow big is their team and how long have they been in operation?
\nWhat are their\u00a0standard processes\u00a0for planning, communication, feedback etc?
\nHave they been referred by someone, or do they have any trustworthy reviews?
\nWhat level of detail do they provide?
\nWhat is included in the scope of works they are proposing?\u00a0<\/p>\n
And some questions for your builder later down the line:<\/p>\n
Is this the optimal orientation of my home on the block?
\nCan my home design be flipped or rotated?
\nWhat size house do I really need?
\nWould an extra room be better than a bigger garage?
\nShould I save on air-conditioning by having ceiling fans instead?<\/p>\n
\u00a0
\nBuilding plans can also provide a good overview of the construction job but they don\u2019t provide a complete breakdown. So it\u2019s worth putting together a \u2018tender package\u2019 clearly setting out:<\/p>\n
The scope of the work. This is typically an outline of the work required by the builder. Make it clear if you\u2019ll be contracting to a third-party tradesman for parts of the construction or if you have the skills, where you\u2019ll be doing the work yourself.
\nThe building plan. This should include engineering documents and soil tests. The builder needs to know exactly what\u2019s involved and what you actually want to see in the completed home. It will also help them to figure out the total costs of material and labour as well as the timeframe for completion.
\nThe building schedule. The materials, fittings and fixtures you want for the house. Be as detailed as possible to avoid a cost blowout.<\/p>\n
With a tender package, the builder knows exactly what the job entails and what you expect to see in the finished project. When they come back to you with a quote, make sure it\u2019s clearly itemised with the materials and labour involved in all stages of construction.
\nOnce you have an itemised quote, you can then compare quotes with other licenced builders by going through the same tender process. In this way, you\u2019re comparing apples with apples.
\nYou\u2019re likely to find massive price differences in the quotes you get, but It may be that one builder is doing something extra that the other isn\u2019t. If you\u2019re in doubt, it\u2019s good to check quotes with a third party like an architect or building broker.
\nGetting 3 \u2013 5 different quotes is a good general rule. But remember that you don\u2019t want a builder to cut corners and sacrifice workmanship just so you can get a cheaper price.
\nA good building broker can also help guide you in decision-making, explain unfamiliar terms and conditions, advise what to sign and when and make sure the choice of builder fits your brief.
\nDo you have any idea what they\u2019re talking about?
\nIt\u2019s a fair question, especially if you\u2019re not a handyman or tradesman. Builders tend to use a lot of industry jargon and abbreviations that you may not understand. So, it\u2019s important to clarify what they\u2019re talking about or look it up yourself. The last thing you want to do is agree to something expensive that you didn\u2019t ask for!
\nAs you move along through the building process, you shouldn\u2019t be afraid to ask your home builder what certain terminology means \u2013 in the end, they\u2019re the experts, and they should be happy to help you understand what\u2019s going on with your project!\u00a0
\nIn particular, be wary of quotes that have a lot of so-called \u2018provisional sums\u2019 or \u2018prime costs\u2019 listed. These quotes give you a ballpark figure of the materials, fittings and fixtures but they can be really deceptive.
\nMiscommunication is a major problem when dealing a builder which is the reason why a detailed tender package and a building contract is essential. In particular, the following items or works may not be included in the completed construction so it\u2019s important to clarify this early on before you sign the building contract:<\/p>\n
Driveways.<\/p>\n
\u00a0<\/p>\n
Garage doors.
\nFencing and landscaping.
\nHot water and gas supply.
\nLight fittings.
\nThe number and location of power points.
\nWindow locks.
\nFlyscreens.
\nRoof insulation.<\/p>\n
\u00a0
\nDon\u2019t sign the building contract until you\u2019re ready
\nThe same goes for looking at contracts from potential home builders. It\u2019s important to get legal advice whenever signing a building contract to ensure that the contract is in your best interests. In particular, speak to a solicitor with building contract expertise. If there is something you don\u2019t understand, be sure to ask your home builder or legal advisor before you sign \u2013 and remember to raise any other concerns you might have before signing, because any small changes to the contract can actually cause you major headaches when it comes to getting approved for a construction loan or mortgage and drawing down your progress payments for the build.
\nConsider the following:<\/p>\n
What warranties can they offer you?
\nDo they offer termite prevention? It may cost you in the short-term, but it\u2019ll likely save you thousands over the long-term
\nThe contract should include the fully itemised list of quotes that you agreed upon initially.
\nMake it clear that you should be made aware of any changes to the building schedule that may need to be made during construction. It may be that certain materials will need to be substituted in order to stay within your budget. If you haven\u2019t made this clear, the builder may use fixtures and fittings that will cost you more than you can afford.
\nIt should include the construction start date, key construction stages (where you\u2019ll need to make progress payments on your construction loan) and the completion date.<\/p>\n
On the HIA and MBA websites, you\u2019ll also find standard, proforma construction contracts which are accepted throughout the industry.
\nBeing thorough when choosing your home builder can avoid you landing in a world of pain, and will give you the peace of mind that you\u2019ve made the right choice for your new family.<\/p>\n","protected":false},"excerpt":{"rendered":"
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