Builder due diligence

Hey all,

I've heard stories about how builders sometimes goes bankrupt mid project.

I was just wondering if there is a way to ascertain how good the builders financial position is? Of course other than asking the builder to reveal their balance sheet. ( I've seen it recommended sometimes, but personally think would lead to a rocky relationship from the start)

Of course logically thinking, there is nothing stopping the builder from signing up clients to purely obtain cashflow to keep afloat with no intention of completing the project. And I would think, there would be nothing stopping them from just filing bankruptcy and then registering again under a new company. Of course this would be more relevant for small builders, I would think bigger builders have lot more reputation to lose.

 

Dunn & Bradstreet type paid company searches.

 

Thanks for pointing me in the right direction.
Ended up getting a credit report from Equifax.
There were some concerning events that took place with builder last year. But not sure how significant it is. Have obtained advice from my accountant

 

Do you need builder's permission to get credit report? Thanks