How to choose a builder for your renovation

A renovation is one of the biggest jobs most people ever do on their home. The builder you pick will shape the budget, the timeline and how much stress you deal with along the way. A bit of homework before you sign anything goes a long way.

This guide walks through how to find, check and compare builders, and what to look out for before work starts.

Start with a clear brief

Builders can only quote properly on what they can see. Before you call anyone, write down what you want done, room by room. Include:

• the scope of work (what's being removed, moved, added or replaced)
• any plans, sketches or photos of finishes you like
• whether you need an architect, draftsperson or engineer
• whether council approval or a building permit may be needed
• your rough budget and any fixed dates, like moving out or a new baby

Consumer Affairs Victoria suggests describing the job in detail and checking with your local council early about permits, in its guide to choosing a building team. That advice works anywhere in Australia.

Find builders who do your kind of job

A builder who mostly does new homes may not be the best fit for a kitchen and bathroom update in an older house. Look for builders who regularly do renovations similar in size and style to yours. Ask people you know who have renovated recently, look at local work and browse builders in your area.

Check their licence or registration

Builders generally need a licence or registration for residential work, but the rules, names and thresholds vary between states and change over time. Always check the official register for your state, and make sure the licence covers the type of work you're having done, not just "building" in general.

Our guide on how to check a tradie's licence lists where to look in each state. In Victoria, see our guide to checking a builder's registration.

Also check the business behind the builder. Look up their ABN on ABN Lookup and make sure the name matches the licence and the quote.

Ask the right questions

Before you get to quotes, a quick chat can tell you a lot. The NSW Government has a handy list of questions to ask before hiring a tradesperson or builder. Useful ones include:

1. What's your licence number? Then check it yourself.
2. Have you done similar renovations? Ask to see photos or, better, visit a finished job.
3. Who will be on site day to day? Find out who runs the job and who you contact.
4. Which trades do you subcontract? Ask whether those trades are licensed and will provide compliance certificates where required.
5. What insurance do you hold? Ask for a certificate of currency for public liability, and check whether home warranty insurance applies to your job.
6. What's your current workload? A builder juggling too many jobs can mean delays.
7. How do you handle variations? Changes should be agreed in writing before the work is done.
8. What's the likely timeline? Ask what could push it out, like weather or long lead times on materials.

Get comparable quotes

Get at least two or three written quotes based on the same plans and scope, so you're comparing like with like. Consumer Affairs Victoria recommends at least three quotes for the same plans and warns that the cheapest may leave out items or only allow a basic standard of finishes.

A good quote should be detailed and itemised. Look for:

• a clear description of the work and what's excluded
• allowances (provisional sums or prime cost items) and what they're based on
• who supplies fixtures and finishes
• demolition, rubbish removal and site clean-up
• permits, approvals and inspections
• the payment schedule and GST

Check references and past work

Talk to a couple of recent clients. Ask whether the job started and finished on time, whether the price changed and why, how well the builder communicated, and whether they'd hire them again. Online reviews help too, but read a range of them rather than relying on one or two.

Get it in writing

Always use a written contract, even for smaller jobs. In some states it's a legal requirement above a certain value. For example, the NSW Government says a written contract is needed for residential building work over $5,000, on its page about contracts for residential building work.

In Victoria, Consumer Affairs Victoria says work involving more than one trade and worth more than $10,000 needs a major domestic building contract, as explained on its building contracts page. Rules in other states differ, so check your state's consumer or building regulator.

Read the contract carefully, and consider getting independent legal advice before you sign. Make sure it covers the price, scope, start and finish dates, payment stages, variations and how disputes are handled.

Deposits and progress payments

Be careful with large upfront payments. In NSW, the maximum deposit for residential building work is 10% of the contract price, and for jobs over $20,000 the builder must have home building compensation cover in place before asking for a deposit, according to the same NSW contracts page. Other states have their own rules.

Progress payments should match work that's actually been completed. Don't pay ahead of the job.

Red flags

• No licence number, or one that doesn't match the business name
• A quote with no detail or no site visit
• Asking for a large deposit or cash up front
• Pressure to sign quickly, or "special prices" that expire today
• Reluctance to put things in writing
• No insurance certificate when you ask
• Promising a timeline that seems too good to be true

Your rights

Under the Australian Consumer Law, services must be provided with due care and skill. If something goes wrong, raise it with your builder first and keep records. If you can't sort it out, contact your state's fair trading or consumer affairs agency. The ACCC consumer pages explain the basics.

Find a builder

Browse builders near you, or start with builders in Sydney or builders in Melbourne. For smaller jobs like decks and joinery, you might only need carpenters.

Find builders in your area

Frequently asked questions

This guide is general information only, not legal or financial advice. Rules change, so check the official sources linked above for your state.