Choosing The Right Builder For Your Property Development
Selecting a builder is one of the most important decisions you’ll make on a property development. Making the right choice safeguards compliance, reduces risk and increases the likelihood of an on‑time, on‑budget build. While price and rapport matter, the essentials are licensing, insurance and a verifiable track record, and each has state‑specific nuances across Australia. Here’s how to approach choosing the right builder like a seasoned property developer.
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Licences
Before you compare quotes, confirm that your shortlisted builder is licensed or registered for the scope and class of work in the state or territory where your project resides. Do not rely on a business card or a logo; use the official registers.
• New South Wales (NSW): Check the licence via NSW’s public registers (now under Building Commission NSW, with legacy tools on NSW Fair Trading). You’ll see licence class, expiry and any disciplinary entries.
• Queensland: Use the Queensland Building and Construction Commission (QBCC) register to review licence status and history, including directions to rectify and suspensions.
• Victoria: The Victorian Building Authority / Building and Plumbing Commission hosts “Find a Practitioner” and consumer insurance guidance.
• South Australia: Consumer and Business Services (CBS) publishes registers for building work contractor licences and supervisor registration.
• Western Australia: The Building Services Board (DMIRS) provides licence searches for registered builders.
• Australian Capital Territory (ACT): Access Canberra maintains public registers for builders, certifiers and issues industry notes that flag compliance issues.
• Tasmania: Consumer, Building and Occupational Services (CBOS) licenses builders by class (Domestic, Low, Medium, Open). Ensure the subclass matches the rise and class of your building.
• Northern Territory: The Building Practitioners Board requires registration for contractors and sets minimum net tangible asset requirements.
A competent builder should also be familiar with the National Construction Code (NCC), which sets the minimum technical standards nationwide and is updated periodically (NCC 2022 and subsequent amendments).
Insurances
The insurance profile must suit the type of project (residential vs commercial), the contract value and the jurisdiction. Ask for certificates of currency and verify them with the issuer where possible.
Statutory residential schemes
• NSW – Home Building Compensation (HBC): For residential projects over $20,000, the principal contractor must obtain HBC cover before taking any money (including the deposit) or starting work, and provide the certificate to the owner. NSW’s scheme is administered solely by icare (HBCF), and coverage can be confirmed via HBC Check.
• Victoria – Domestic Building Insurance (DBI): Required for contracts over $16,000. DBI typically covers structural defects for six years and non‑structural defects for two years if the builder dies, disappears or becomes insolvent; the certificate must be provided before any deposit is taken.
• Queensland – Home Warranty Scheme: Applies to most residential construction over $3,300, with cover for non‑completion and defects (e.g. 6 years 6 months for structural, 6 months for non‑structural) and specific exclusions for buildings over three storeys.
South Australia – Building Indemnity Insurance (BII): For work $20,000 or more requiring council approval, the builder must provide BII to protect owners if they die, disappear or become insolvent; CBS advises independently verifying the certificate due to past forgery issues.
Core commercial insurances
• Contract works / construction all‑risks: Covers materials and works against damage or theft during construction; NSW homeowner guidance explicitly recommends ensuring your contractor holds this cover.
• Public liability: Protects against third‑party injury/property damage; vital on active sites.
• Workers’ compensation: Mandatory for employees; confirm that all site workers are covered under their employer’s policy.
• Professional indemnity (PI): Essential for design practitioners, certifiers and engineers; in NSW, designers and certain building practitioners have explicit PI requirements.
• Administrative detail matters: The insured name on each policy must match the contracting entity, and in NSW the insurance must be taken out in the same legal name as the contract.
Track Record
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Brochures and glossy sites look impressive; however, reviewing regulators’ registers, insurers’ records and connecting with previous clients can often reveal much more detail.
• Regulatory histories: In Queensland, the QBCC licence register shows directions to rectify, suspensions and cancellations. In NSW, public warnings and certifier registers list public indemnity status and any suspensions. In SA, verify the contractor licence and supervisor registration; ensure limitations don’t conflict with your scope.
• Referees: Request at least three recent, like‑for‑like projects (same building class, complexity and delivery method), with contact details for the principal and superintendent. Verify independently (e.g. council approvals or occupancy certificates).
• Site inspections: With permission, visit completed projects and ask owners on defect resolution speed and quality.
• Financial footing: Some states (e.g. NT) require minimum net tangible assets for contractor registration; while not a full solvency test, it’s a baseline indicator.
Contracts
Evaluate how thoroughly the builder scopes and prices the work.
Defined scope and inclusions: Insurers and regulators stress clear scopes; ambiguity invites variations and delays.
Programs aligned to approvals: Ask for a schedule that aligns with statutory inspections and NCC requirements for your building class.
Variations and provisional sums: Ensure mechanisms are explicit; in NSW, HBC costs must be itemised and any margin shown separately, with insurance obtained before deposits or work commence.
Compliance
Builders who actively engage with regulators’ guidance and code updates tend to run safer, more compliant sites. The NCC is performance‑based and allows compliance via Deemed‑to‑Satisfy or Performance Solutions; your builder should be comfortable with both pathways as appropriate.
Builder Selection Checklist
Licence/registration verified (correct class, jurisdiction, no suspensions).
Statutory residential cover (if applicable) confirmed: NSW HBC, VIC DBI, QLD Home Warranty, SA BII.
Valid general insurances: contract works, public liability, workers’ comp, PI where relevant.
Three like‑for‑like referees, independently verified; site visits conducted where feasible.
Regulator history reviewed (e.g. directions to rectify, warnings, suspensions).
Contract scope, programme and variation mechanisms documented; statutory insurance itemised correctly.
Demonstrated familiarity with NCC provisions and local variations.
The Bottom Line
The best builder isn’t simply the lowest bidder or the earliest starter. It’s the one whose licensing fits your building class, whose insurance genuinely protects your project and whose record stands up on the public registers. When you insist on documentary proof, and verify it, you materially reduce the risk of delays, defects and disputes.