Choosing a Builder and Checking Registration

Selecting a qualified and reputable builder is the most important decision in the construction process.

Verifying Victorian Building Authority Registration

In Victoria, any builder who performs domestic building work costing more than 10,000 dollars must be registered with the Victorian Building Authority. Registration ensures that the builder has the necessary qualifications, experience, and insurance to carry out the work. There are different categories of registration, such as Domestic Builder (Unlimited) and Domestic Builder (Limited). A builder with a 'Limited' registration is only permitted to perform specific types of work, like bricklaying or painting. You should always use the VBA online practitioner search to verify that your builder's registration is current and appropriate for your project.

Hiring an unregistered builder or an owner builder who is not properly qualified carries immense risk. You may not be eligible for Domestic Building Insurance, and you could face significant legal issues if the work does not meet the building code. Furthermore, if you decide to sell your home within six and a half years of completion, you will need to provide a special inspection report and insurance if the work was done by an owner builder. Checking the registration status is a simple step that provides a baseline of protection for your investment. Do not accept a registration number without verifying it directly on the VBA website.

Volume Builders vs. Custom Builders

When choosing a builder, you must decide between a volume builder and a custom builder. Volume builders construct hundreds of homes a year using a set of standard designs. This scale allows them to offer lower prices and fixed timelines, but it also means less flexibility. You are often limited to a specific range of fixtures, fittings, and floor plan modifications. If you want a unique home tailored to a difficult block, a custom builder is usually a better fit. While custom builders generally charge more, they offer a higher level of personalisation and are often more equipped to handle complex sites.

Before making a decision, visit display homes to inspect the quality of the finish. Look closely at the 'standard' inclusions versus the 'upgrades' shown in the display. Many display homes are fitted with tens of thousands of dollars in extras that are not included in the base price. Ask for a detailed list of standard inclusions so you can make an accurate comparison between different builders. It is also wise to speak with former clients or read independent reviews to understand how the builder handles delays, communication, and defect repairs during the warranty period.

Assessing Builder Solvency and Insurance

The financial health of your builder is a critical consideration. If a builder goes into liquidation during construction, it can lead to long delays and significant financial loss. While it is difficult to see a private company's bank statements, you can look for warning signs such as frequent changes in staff, demands for large deposits upfront, or subcontractors complaining about late payments. In Victoria, builders must provide you with a certificate of Domestic Building Insurance for projects over 16,000 dollars. This insurance protects you if the builder dies, disappears, or becomes insolvent before completing the work or fixing defects.

Before you pay a deposit, the builder should give you a copy of the DBI certificate for your specific property. This certificate is required to obtain a building permit. Be wary of any builder who asks for a deposit larger than the legal limit, which is 10 percent for contracts under 20,000 dollars and 5 percent for contracts over 20,000 dollars. Paying more than the legal limit increases your risk if the builder fails. A reputable builder will operate within these legal frameworks and be transparent about their insurance coverage and financial status throughout the process.

• Check VBA registration status online
• Verify Domestic Building Insurance coverage
• Compare standard inclusions vs. upgrades
• Review the builder's past work and client feedback
• Ensure the deposit amount is within legal limits