- Confirm the Builder is Registered
Ensuring your builder is registered is the first safeguard when choosing the right company to build or extend your home.
- Indemnity Insurance
Only a Registered Builder will be able to obtain Indemnity Insurance to cover the home owner if something should happen to the builder i.e. the builder becomes insolvent.
A builder who is upfront about potential variation costs will always make you more comfortable than a builder who is not.
- Cover all bases
Building a home is a life-long commitment, decisions shouldn’t be made quickly & lightly. Look at references of the builder and examples of their work.
- Payment of Deposit
The initial deposit should never be more than 6.5% of the contract value.
This is actionable by law for contract values from $7,500 to $500,000
– “Home Building Contracts Act 1991”
- Progress Payments
Your progress payments should align with the work completed or materials supplied.
If the builder has made a claim for more than has been provided, be sure to query this issue with them.
- Progress Stages
Progress payment stages may slightly differ from the norm so it’s important to ensure you understand each stage.
Common progress payment claim stages are;
- Plate Height
- Roof Cover
- Lock Up
- Secondary Finishing
- Practical Completion
8. Your Contract Agreement
Every builder shall provide a contract agreement which protects both the builder and the client. If you have any queries about the contract, ensure you ask the builder.
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Thanks to J & K Reed Constructions for their input on this blog, you can see them here;