Know Your Builder - Questions you should ask
How long has the building company been in business?
The owner should be aware of the builders’ years in operation in that business. Request to see the builder’s licence and also run a search on the licence (see a link to the fair trading website below). A builder may have a certain number of years’ experience however it may not have been in that company or in the same area. Understand exactly when, where and with who they operated.
What is the track record of the builder?
A track record is the identifiable record of a builder completing work over the years to a high standard that gives satisfaction to the Owners. The more years in business together - the better. Experience is always key – however many years together will serve as a testament to the situations and circumstances they have learnt to deal with.
What projects has the builder completed?
The owner should find out what projects the builder has completed and find out from past owners about the performance of the builder and the long term results. If you can’t do this or the builder has a minimal track record you are taking a risk with your biggest asset: Your house.
What do the public reviews say about the builder?
You can determine much from public reviews. Other than client satisfaction and quality of workmanship – you can also understand how the builder deals with problems when they arise, are they acting fairly and involving the right authorities to have the situation resolved.
What is the temperament and personality of the building company?
It’s important to understand who you are dealing with and how the company handles unforeseen situations when they arise. No building company is perfect so when difficulties arise, you need to understand the personality of the company. Will they act in a fair and reasonable manner? Will the right people be available and involved to have a problem solved? Talk with previous clients and learn how problematic situations were resolved in their case.
What is the reputation of the building company and how do they treat exclusions?
It is important to understand if the company has a reputation of verbally agreeing to requests or offers only to later deny they were offered. In most cases – if an item is not put in writing to you, it didn’t happen. If you are at the point of quotation and specification, ensure all your requested points have been covered in writing – before you commit.
Are your Provisional Sums estimated accurately?
In some cases, a builder will underestimate a provisional sum for instance: Structural Steel. This will keep the quotation very affordable to the client at the time of signing. Later on, the builder will update the provisional sum amount when it has been costed accurately and pass this charge onto the client when it is too late to ask questions. Before signing anything, it is wise to research and compare your builders quotations thoroughly – especially the provisional sum allowances. If one quotation is substantially cheaper than another – look into this area specifically. You could ask the builder if his allowance amounts are realistic or conservative. Be fully prepared before you commit with a deposit payment or sign a contract.
What warranty or guarantees does the builder offer?
You need to have faith and trust that your builder will:
Finish the job as per the design and specifications
Use all the right techniques and materials
Fix any defects within the 6 year warranty period
Be around and contactable over the years
Make the design and build process an enjoyable and cost effective experience
What happens if the builder becomes insolvent or runs short of capital?
It is a good idea to understand your builders experience and financial position. A builder in business for a shorter period, say a couple of years or even less won’t have encountered many difficult situations and probably does not have the reserves to keep going if things go wrong. If financial issues arise it may mean:
Your job doesn’t get finished and you may suffer a financial loss
You could get caught in costly legal procedures
The construction is often sub-standard or non–compliant
Defects will not be fixed
Other builders don’t want to associate with defective work and won’t quote
About Add-Style and How Would they answer?
Add-Style has the best track record of all builders of additions in the Northern Beaches and North Shore areas of Sydney. The owners and directors have been in this business for 38 years together along with many long standing staff and trades. With over 650 additions under our belt and counting - we have been through the highs and lows of the Australian economy and learnt from all sorts of situations we have confronted in our projects.
We have a high client satisfaction rate with a 4.5 out of 5 Star Rating and many wonderful and down to earth reviews which are publicly available for all to view. We welcome these questions above and invite you to call us directly with any others you may have.
Helpful Resources & Links
Verify the Builder - HBCF Check
It’s important to verify your builder. If you are contracting a business to do more than $20,000 of work on your home, it is important that you check the business has valid insurance for the work on your home before you pay any money to the business (including the deposit) and before the work starts. You may also wish to check for insurance when buying a new home, or a home built or renovated within the previous 6 years. Use this link to search for the company you are thinking about engaging.
https://verify.licence.nsw.gov.au/home/HBCF
Verify the Builders Licence
Its important to verify the builders licence and credentials. Use this link for your search:
https://verify.licence.nsw.gov.au/home/Trades
Builder Insolvencies
Builder insolvencies in NSW are rising steeply and are at record levels.
2020-21 ... 351 insolvencies in NSW alone
2021-22 ... 494
2022-23 ... 981
2023-24 ... 1409
2024-25 ... 1567
This article describes what happens when builder become insolvent: