HIA Victoria executive director Keith Ryan said the association’s membership includes companies like Simonds Homes and Southern Vale Homes, as well as renovators, kitchen and bathroom builders, and suppliers of products and services.
When choosing a builder, Keith said the most critical step was verifying registration.
“There are some businesses out there who pretend to be builders, particularly in the renovation space, and they are actually not registered or licensed,” he said.
“There have been in recent years a few builders out there who create the impression it is their licence, but then borrow or lend someone else’s licence number, and they can be quite dangerous.”
Prospective homeowners should also confirm their builder, in Victoria, has access to the First-resort Home Warranty Scheme, which must be provided when a contract is signed.
In Victoria, you can check registration and licensing details through the Building and Plumbing Commission at bpc.vic.gov.au.
In NSW, the equivalent body is the Building Commission NSW at nsw.gov.au/departments-and-agencies/building-commission.
Keith recommends asking to speak with recent clients as a further check.
“Many builders, and particularly the experienced and good builders, will be happy for you to talk to some of their clients,” he said.
“If the clients aren’t available or aren’t provided, that is possibly a warning that things aren’t great.”
If a dispute arises, Keith advises raising it directly with the builder first.
“Good builders will go out of their way to try and resolve any problems you have,” he said.
If that fails, the BPC offers a free dispute resolution service.
“They’re (BPC) keen to try and get disputes resolved sooner rather than later,” Keith said.
He also urges buyers to lock in exactly what is to be built before signing a contract.
“A lot of problems between builders and consumers come about because the consumer and, to be frank, the builder as well, have decided, let’s start the process or start building, and we can work out some details later,” he said.
Volume builders, in particular, have less flexibility to accommodate changes once construction begins.
“Particularly if you're going with a volume builder or builder who's charging a lower price, they will tend to be locking in things,” Keith said.
“They'll have certainty about what’s going to be built, so they can be sure about the cost and who’s going to do what, and therefore, they’re less able to change as things go.
“Whereas other builders, particularly the project builders, are more flexible, provided you’re reasonable about negotiating the variation.
“Be mindful that sometimes, if you think you’ve got flexibility, you might find it gets a bit harder if the builder is well under way.”
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