Service Central has put together 5 key questions and a bit of advice on hiring a prospective builder.
Establish experience: Have you done a similar project before?
Obviously, the answer to this must be an emphatic YES! Builders that lack experience aren't always able to anticipate some of the pitfalls of jobs and can price them badly leaving you with a heftier bill to pay or an unfinished job. Of course, you'll only find experienced builders through Service Central but at the same time, your project might be unique so obviously this answer must be within reason.
Establish quality of past work: Can I see examples of previous similar work or references?
Paper references are good but just a telephone number of a past customer works well too. Many builders will have a portfolio of work which will help you decide but of course keep in mind that both references and portfolios are cherry picked so the best place to look is at independent reviews from previous customers on Service Central.
Establish communication processes: Will you be on site or do you have a project manager?
Sometimes, a builder will deploy a team and rely on a project manager to manage the build. This isn't usually a problem but it's a good idea to meet all parties up front. In addition, establish how often you'll be kept up to date with the progress.
Establish payment schedule: What percentage do you need as a deposit?
Builders should never ask for full payment upfront. A deposit may be required upon the signing of a contract. The size of this deposit may vary depending upon the size and complexity of the job. For example in Queensland the Act regulates that the deposit for works over $20,000 is capped at 5%, and a maximum of 10% for works between $3,300 and $20,000.
Establish security: Will you sign a contract?
A contract is not a dirty word. It's a way to ensure that both parties understand their responsibilities clearly. In fact, a proper domestic building contract is an essential component to engaging your builder. Each State regulates the content of a domestic building contract. Check with your State Building Authority to ensure that the contract between you and your builder is legally binding.
Many good builders will have a standard contract that they use so ask to see a copy of it (and read it with this blog post about standard contract terms in mind).
Don't be afraid to ask more questions. Builders deal with prospective customers all the time and as much as they want your business, they also don't want to work on projects where expectations are not well defined up front. As much as you're picking them, they're picking you and they love to talk about their trade.
For more info about builders and their trade read another of our articles Trades Explained: The Builder