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  1. 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.


  1. 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.


  1. Variations


A builder who is upfront about potential variation costs will always make you more comfortable than a builder who is not.


  1. 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.



  1. 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”


  1. 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.


  1. 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;


  • Slab
  • 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;