Engaging building works - contracts?

Hey guys

I need to engage a builder to do some work on my property.

I've been quoted by 3 builders in the ballpark of 15-20k.

What are the necessary steps to ensure the whole process goes smoothly?

Does work in this ballpark need any formal contracts / agreements signed?
How much up front cost should be charged? And rest on completion?
How do I ensure I'm not finding a dodgy builder other than getting their Licence number and previous testimonials?

Regards
Kelvin

 

Check the fair trading website.

Yes a contract is required.

 

I've looked at 3 builders and have chosen on one of them to do the work.
The cost of the job is about $17000
He's asked for $4000 on the first day of the job commencing, with $3250 per week until completion ith last batch of payment to be paid at completion to customer's satisfaction.

Is this normal practice? The NSW Fair Trading contract says maximum is 10%... but I do understand the builder's perspective of paying upfront for the initial materiasl (concrete, excavator hire etc..)

 

Fair Trading

 

Ball park figures mean Cost plus.

You will always find something more once work begins. Have a contingency of 30% or so.