6 Questions to Ask Your Home Builder Before Signing a Contract

If you’ve decided to build a new home from the ground up, you’ll quickly figure out that it takes time, effort and money to get the job done right. This makes signing a building contract one of the largest commitments you’ll ever make, putting the pressure on you to find a builder that’s right for you.

Unfortunately, there are many important factors that many people fail to consider when selecting their new home builder that can have a substantial impact on the final product. Below, we’ll go over 6 questions you should ask every home builder you’re considering before signing a contract and committing to their services.

1. Are they registered and insured?

The first and arguably the most important question you should ask any home builder is if they’re registered and insured. Australian law requires that all builders need to have both an up to date builders licence and insurance.

Even if a builder tells you that they’re licensed and insured, you shouldn’t simply take their word for it. Ask for the proper documentation and do your research to find out if their licence permits them to do the kind of work that you’re after. Them having the correct insurance in place will ensure that if any accidents happen during construction, you won’t personally be held liable.

2. Can you view their recently completed projects?

Something else you’ll want to see before signing on the dotted line is a builder’s recently completed projects. This will not only allow you to see how high their standards are and if their clients are satisfied but also get further insight into the types of homes that they have experience building and whether they align with your vision.

If you’re looking to build dual-occupancy homes, you’ll want to find dual-occupancy builders who know how to design, plan and construct these types of homes. If your builders have no examples of the relevant homes to show you, it might be time to look into another option.

3. Has their business ever been bankrupt?

If a builder you’re considering has ever declared bankruptcy, be wary. A company that goes bankrupt can cancel your project without warning and leave you with thousands of dollars wasted and picking up the pieces that they’ve left behind.

A builder that’s gone bankrupt before has a much higher chance of going bankrupt again, so keep this in mind before making a decision.

4. How will you be kept up to speed during construction?

One of the top priorities of many families building a new home is being kept in the loop throughout the construction stage. What you want is a builder who is an excellent communicator, keeping you up to speed on how the process is going and any changes that will need to be made as it’s happening.

Don’t be scared to ask for the phone number of the person who’s responsible for managing your site, as you should always have direct access to them. The last thing you want is to end up with a home full of unwanted surprises, so this is a precaution that can’t be taken lightly.

5. Where are they based?

Choosing a local home builder that’s familiar with the area you want to build in can make a world of difference. Not only will they be nearby at all times, but they’ll be able to hire subcontractors that they’ve worked with before and trust to get the job done right.

It also means that they’ll be aware of the local council’s rules and regulations, and know how to present a plan that will be approved without any major hassles or roadblocks.

6. What is the projected timeline?

Understandably, most of us want to get into our new homes as quickly as possible. While building a new home takes time and patience is necessary, some home builders will move at a glacial pace and waste both your time and money in the process.

Make sure to get a clear start and completion dates for your project, as well as the time assigned for cleaning up your lot after construction has been completed. The longer the project takes the more additional pricing you’ll cop, so make sure you’re happy with the timeline provided to you and that you believe they’ll be able to follow through with their promises.