It is important to perform due diligence on your builder. The last thing any homeowner wants is for their builder to be unable to complete the job, leaving you with an unfinished home and thousands of dollars out of pocket. Here are some tips for selecting the right builder:
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Ask to speak to their last three customers. Don’t let them select their own references. Ask these customers what their experience was and ask if you can visit their home to see the outcome.
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Ask them about their process for quoting for a job.
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Ask to see a copy of their standard building contract.
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Ask them how they track progress on a job vs key milestones and how they propose to handle variations that arise during the job.
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Ask whether they can provide an independent, written guarantee, and who this is with.
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Ask what insurances they have, how much they are covered for and what their liability limits are.
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Ask them what subcontractors they will employ and why they use them.
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Ask whether they are a Licensed Building Practitioner and request a copy of their license number.
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Find out what brands of building materials they will be using. This will help you understand whether they are using quality products, or substituting lower quality versions.
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Assess their general impression. Are they professional in their approach and appearance? Do they follow a structured process? Are they listening to what you say and offering helpful suggestions?
Click here to download a copy of this checklist.
HOBANZ, the Homeowners and Buyers Association of New Zealand, also has an excellent due diligence checklist:
www.hobanz.org.nz/images/hobanz/pdf-files/Forms/due-diligence-checklist.pdf (you may need to register, but this is free).
