Choosing a builder is arguably more important than choosing the house design itself. You’re entering a long-term relationship—one that involves a lot of your money and potentially a lot of your patience. With the construction industry facing supply chain issues and rising costs, chawlafinance.com.au views "due diligence" not as a buzzword, but as a shield.
1. Check the Vitals
In Australia, every builder must be registered. Check their license and, more importantly, check their history of building insurance claims. If they’ve had more "incidents" than a clumsy waiter in a crystal shop, it's best to move on.
2. The Fixed-Price Myth
While "fixed-price" contracts are the gold standard, read the fine print regarding Prime Cost (PC) Items and Provisional Sums (PS). These are "allowances" for things like site works or tiles. If the builder underestimated the cost of digging through that unexpected rock in your backyard, a "fixed price" can suddenly start moving.
3. Review the Pipeline
Ask the builder how many homes they currently have under construction. A builder with 50 half-finished homes and three staff members is a red flag. We look for builders who are busy enough to be successful, but not so busy that the site supervisor becomes a legend you only hear about in whispers.
4. Communication is Key
If they take three weeks to return a call when they are trying to get your business, imagine how long it will take when you’re asking why the kitchen island is in the middle of the hallway. Trust your gut.