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Builders' employment

Working with a builder

Builders generally manage and coordinate the building of your home or renovation.

Building work

Builders are needed for any building work that requires building approval. Contact us if you are not sure if your project has exemption from development and/or building approval.

Check licensing

Builders must be licensed. You can find a builder who has the relevant qualifications and expertise from our list of licensed builders. You can use this list to check licensing against any advertisements you see in the local press, trade directories, the Yellow Pages or you can contact industry associations such as the Housing Industry Association and the Master Builders Association.

Check insurance

Builders must have a residential building insurance policy or a fidelity certificate, which protects you against defective and incomplete work. Be sure that the name of the builder appears on the statutory warranty and insurance certificate or fidelity certificate. If you make an insurance claim and the name of an unlicensed company is on the insurance, you may have no redress with the builder.

Get quotes

Before you employ a licensed builder, it is preferable to obtain at least three written quotes for the same type of work based on the completed plans and specifications. If you change your mind on what you want, write a list of changes or have the plans re-drawn and ask the builders to re-quote. It is also a good idea to ask the builder for details of similar past work and recent clients to check out the quality of the work.

Use a contract

Once you have decided on a builder, you need to employ the builder using a written contract. If you don't understand or are unhappy with any detail of the contract or its practical consequences, don't sign it - seek legal advice.

The contract must:

  • be signed and dated by you and your builder (not the company or any other person who contracted the builder);
  • state your name and your builder's name;
  • have the address where the work is to be carried out;
  • state the builder's licence details;
  • state the start and completion dates;
  • state the payment arrangements;
  • have the plans and specifications attached;
  • contain the statutory warranties; and
  • display the total contract price.

Make sure the work agreed to is stated fully in the contract. This includes variations and things that could affect the price. Put it in writing, signed by you and your builder, and attach to the contract. This will help to prevent misunderstandings and minimise disputes.

The Master Builders Association and Housing Industry Association have developed contracts that can be used in the ACT, as has the NSW Department of Fair Trading.

Regulation

Anyone who believes a licensed or formerly licensed builder has not built according to plans, standards or is in breach of legislation may put their concerns in writing by giving us feedback. Complaints may result in disciplinary action.

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