Navigating the Construction Landscape: Tips for Choosing a Builder in Australia

The Foundational Pillars of Builder Selection
 

1. Rigorous Licensing and Regulatory Compliance

The Australian construction industry operates within a complex framework of state and territory-specific regulations, each with unique licensing requirements.

State and Territory Licensing Authorities

• New South Wales (NSW): NSW Fair Trading (https://www.fairtrading.nsw.gov.au) - Verify licenses, check for disciplinary actions, and understand license scope. 
• Victoria (VIC): Victorian Building Authority (VBA) (https://www.vba.vic.gov.au) - Utilise the online registry to confirm license validity and restrictions.
• Queensland (QLD): Queensland Building and Construction Commission (QBCC) (https://www.qbcc.qld.gov.au) - Ensure the builder holds the appropriate QBCC license for your project.
• Western Australia (WA): Building and Energy WA (https://www.commerce.wa.gov.au/building-and-energy) - Verify registration and compliance.
• South Australia (SA): SA Consumer and Business Services (https://www.cbs.sa.gov.au) - Confirm licensing and endorsements.
• Tasmania (TAS): Tasmanian Building and Plumbing Services (https://www.cbos.tas.gov.au/topics/building/building-services) - Check registration and compliance.
• Australian Capital Territory (ACT): ACT Consumer Protection (https://www.accesscanberra.act.gov.au/s/article/consumer-protection-land...) - Verify licensing and understand ACT building codes.
• Northern Territory (NT): Northern Territory Consumer Affairs (https://consumeraffairs.nt.gov.au) - Confirm registration and adherence to NT standards.
• National Construction Code (NCC): Confirm the builder's adherence to the NCC, which establishes minimum standards for building work across Australia. (https://ncc.abcb.gov.au/)
• Permit Acquisition: Verify that the builder will manage all necessary permits and approvals, thereby potentially mitigating potential legal complications.
   

2. Comprehensive Insurance Coverage

• Public Liability Insurance: It can help provide protection against third-party claims for injuries or property damage.
• Construction Works Insurance (Contract Works Insurance): It can assist in safeguarding oneself against damage to the building during the construction phase.
• Professional Indemnity Insurance: It may help with offering protection against potential design errors.
• Workers Compensation Insurance: It can help protect against liability for worker injuries on-site.
• Verification: Consider requesting and verifying insurance certificates directly with the insurance providers.
   

3. Demonstrated Experience and Specialisation

• Consider builders with demonstrable experience in projects analogous to your own.
• Consider requesting a comprehensive project portfolio, including photographic evidence and client testimonials.
• Consider doing site visits to completed projects, where feasible, to assess workmanship quality.
• Consider learning more about the builder's subcontractor team, evaluating their expertise and reliability.

4. Verifiable Reputation and References

• Try obtaining direct client references and conduct thorough interviews, focusing on specific aspects like communication, budget adherence, and quality.
• Consider seeking professional referrals from architects, engineers, and building surveyors, leveraging their industry insights.
• Try gathering community feedback and investigate any history of complaints with consumer protection agencies.
• Try looking for reviews on Google Business, and other review platforms.
   

5. Financial Stability and Transparency

• Consider requesting and analysing financial statements or credit references to assess the builder's financial health.
• Try to negotiate a staged payment schedule tied to project milestones, providing financial safeguards.
• Consider ensuring the builder possesses adequate working capital to complete the project, avoiding potential delays.
   

6. A Robust and Comprehensive Contract

• Consider engaging a solicitor specialising in construction law to review the contract, ensuring legal clarity.
• Request that the contract includes detailed plans, specifications, and a clear scope of work, minimising ambiguity.
• Consider defining the payment schedule, variations clause, and dispute resolution process, preventing future conflicts.
   

7. Warranties and Guarantees

• Understand the builder's warranty on workmanship and materials for  quality assurance.
• Try familiarising yourself with statutory warranties applicable in your state or territory, protecting your rights.
• Consider ensuring all warranties are documented in writing, which may help provide legal recourse if necessary
   

The Potential Benefit of Using Reliable Tools like iCIRT

What is iCIRT?

The Industry Certification of Integrity and Reliability for Trades (iCIRT) is a platform that helps consumers find certified, reputable developers and building professionals in Australia. iCIRT helps verify that builders meet industry standards and operate with integrity and professionalism.
 

How iCIRT Can Help You Find Trustworthy Builders

iCIRT provides a list of pre-vetted builders that can give you peace of mind that the construction professionals you hire are reputable and financially viable. By using ICIRT, you can help yourself overcome the risk of hiring dodgy builders.
 

Benefits of Using iCIRT to Verify Builders

Using iCIRT to help verify a builder’s credentials in a manner implies that they have the appropriate qualifications, licenses, and insurance. iCIRT also can help to verify their reputation within the industry, giving you access to reviews and feedback from past clients.

To conclude..

Selecting a suitable builder can contribute to the success of your construction project. Dodgy builders can cause significant financial loss, legal trouble, and safety risks. Knowing how to identify red flags and using reliable tools like iCIRT to find trustworthy professionals may help you mitigate the risks associated with dodgy builders and facilitate more informed decisions.

iCIRT-ratings help homebuyers choose trustworthy building professionals. A 3-gold star or higher rating indicates a builder, developer or other building professional has demonstrated their credibility in an independent, evidence-based analysis of their business.

This guide to iCIRT-ratings is for those home buyers looking for peace of mind when choosing a building professional with whom to build, renovate or purchase a new home or apartment. Click here to download for free.
 

Disclaimer: The information provided in this article is intended for informational purposes only and should not be construed as financial advice. Readers are strongly advised to seek independent professional advice tailored to their specific circumstances and requirements.