Choosing a builder is arguably more important than choosing the house design itself. You’re entering a long-term relationship — one that involves a lot of money and potentially a lot of patience.
With the construction industry facing supply chain issues and rising costs, Amber Finance views “due diligence” not just as a buzzword, but as a shield.
1. Check the Vitals
In Australia, every builder must be registered. Amber Finance suggests checking their licence and, more importantly, their history of building insurance claims. If they’ve had more “incidents” than a clumsy waiter in a crystal shop, it is time to move on.
2. The Fixed-Price Myth
While “fixed-price” contracts are the gold standard, the team at Amber Finance advises reading the fine print regarding Prime Cost (PC) Items and Provisional Sums (PS). These are “allowances” for things like site works or tiles. If the builder underestimated the cost of digging through unexpected rock in the backyard, a “fixed price” can suddenly start moving.
3. Review the Pipeline
Ask the builder how many homes they currently have under construction. A builder with 50 half-finished homes and three staff members is a red flag. The goal is to find a builder who is busy enough to be successful, but not so busy that the site supervisor is a ghost only heard about in legends.
4. Communication is Key
If they take three weeks to return a call when they are trying to get the business, imagine how long it will take when asking why the kitchen island is in the middle of the hallway. Trust your gut.
Disclaimer: Construction and building contracts involve significant legal and financial risks. This blog provides general commentary and is not a substitute for legal advice. Contact us so we can discuss your scenario in detail and assist with the financing of your new build.