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Builder DD

Discussion in 'Development' started by Benson, 30th Jul, 2016.

  1. Benson

    Benson Active Member

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    Hi guys
    In the process of choosing a builder for our small custom home build and since its our first build would like some ideas on how to check Builders backgrounds/any complaints etc.

    I've already checked if they are licensed and will be inspecting a house today which he completed last year and speaking with the owners.

    Since I'm in Melbourne, I've already checked the VBA website for licensing and called HIA to check if he's a member.

    I've also asked for his insurnace policy so going to call and ensure that's active also.

    One thing I've noticed is that he doesn't use a standard HIA building contract but rather has an independent contract through 'Buildsafe '. When I phoned them they said they knew him quite well and is highly recommended, however 20 mins later the builder called me as they notified him about my enquiry? Lol (doesn't appear to be very 'independant'...? Should I be concerned about this?

    Is there anything I've missed to ensure I've chosen a great Builder?

    Cheers
    B
     
  2. Joynz

    Joynz Well-Known Member

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    Please note, that membership of the HIA or MBA doesn't really guarantee anything.

    These are both industry organisations for builders, not regulatory bodies. They support members by offering education seminars on building related matters, provide legal advice to members and have a suite of other add ons that can be purchased by members like OHS documentation/policies.

    However, membership is just a matter of paying several hundred dollars annually! In a dispute, they will support the builder, not you.
     
    Colin Rice, mcarthur, MTR and 2 others like this.
  3. Azazel

    Azazel Well-Known Member

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    In some states you can check with the relevant authorities if they have had any action taken against them, like QCAT in QLD.
     
    Benson likes this.
  4. Benson

    Benson Active Member

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    Thanks @Joynz & @Azazel !
    Are there any other tips or advice I should be looking for?
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Have you done a bankrtupcy search on the individual?
     
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  6. thydzik

    thydzik Well-Known Member

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    for a small builder, I've requested a letter from the accountant before.
     
  7. Azazel

    Azazel Well-Known Member

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    Hmm, I haven't done it before, but looking at examples of their work or getting some references/testimonials couldn't hurt.
     
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  8. bob shovel

    bob shovel Well-Known Member

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    Think of it like a job interview. Ask about their previous jobs, their supervisor and crews, what other jobs they have on and if they are similar or going to affect your job
     
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  9. Joynz

    Joynz Well-Known Member

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    Get more than one reference. They will only give you the good ones, but still worth it.
     
  10. mcarthur

    mcarthur Well-Known Member

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    Make sure they will accept "standard" timings and percentages for release of funds. I had one that tried to substantially change the schedule, against the bank. Of course they tried to make the final payment about 3% or so!
     
  11. Azazel

    Azazel Well-Known Member

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    You could always be a little sneaky and ask the references if they know anyone else they have done work for.
     
  12. TML

    TML Well-Known Member

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    i think another DD is to go to one or more of their sites and see their finished product.
     
  13. Azazel

    Azazel Well-Known Member

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    For sure.
    Not always practical, but there's always a way to work it out.
     
  14. MsAli

    MsAli Well-Known Member Premium Member

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    Which insurance policy is it?
    What about the home builders warranty insurance certificate? Typically lenders require this.
     
  15. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Get legal advice before signing.
     
  16. Azazel

    Azazel Well-Known Member

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    Sound advice.
    Much better than seeking advice after you've signed.
     
  17. WallyB66

    WallyB66 Well-Known Member

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    Not sure why a builder would use a non-standard contract- more emphasis on clients to check it legally. Also quick note when checking the builders licence- some dodgy builders use unused licences once their licence is suspended so worthwhile to check builder has been using the one licence since they've been building- good luck