Selecting a builder, remodeller, or someone to add to your house is among the most important things a person owning property will do. A suitable builder will give you work of good standard, finish within the given dates and treat your money with respect. An unsuitable selection could result in costly changes, arguments in law and lengthy holds-ups. One of the most common places where householders go wrong is in grasping and checking permissions in the correct way before a contract is agreed.

According to industry data, “BuilderInsights monitors more than 406,041 residential builders across all states and territories in Australia and tracks over 9,338,943 licensing, financial and company data points to help homeowners make informed decisions before signing a contract.” This highlights the sheer volume of information available to reduce risk. With so much at stake, skipping proper licence checks is simply not worth it.

Not Checking the Correct Licence for the Job

A very frequent error is not checking the contractor actually has the right permission to do the job needed. The building authority, and what level of work needs a permit, is different in each state and territory.

For instance, a contractor in New South Wales will usually need a permit for building work costing more than $5,000, in Queensland it is $3,300, but in Western Australia, some building work up to $20,000 does not need one. It is important these things are different. Should you use someone who is not properly licensed, you could end up without the legal guarantees and other safeguards you’d normally have.

Before you sign a contract, verify the contractor’s licence number via your state’s governing body. It won’t take long, and it may stop big problems from occurring.

Relying on Verbal Assurances

A common mistake is to believe a contractor’s claims, and not check their qualifications. A neighbour’s suggestion, or a person seeming sure of themselves, isn’t the same as seeing proper paperwork.

Always ask for the contractor license check and then check it with the body which issues them. The licence should be up-to-date, and cover the kind of job being done. Should anyone be unwilling to give you details, think of this as a signal to be careful.

Overlooking Specialist Licensing Requirements

Licences are not all identical. Certain projects call for professional credentials in addition to a typical construction licence. In every Australian state and territory, structural changes, roof work, plumbing and electrical jobs each possess their own, precise licence conditions.

Should you be intending a large-scale remodel, addition or complete house replacement, be certain that any tradesperson you employ holds the correct authorisation. Failing to do so could result in violations of regulations, hazards and expensive repairs later.

Ignoring Mandatory Insurance

Licensing, and insurance are closely linked. Builders are legally obliged to have insurance for house jobs costing more than a specific amount in a lot of places; in New South Wales, the Home Building Compensation Fund deals with this.

Should your builder become bankrupt, or be unable to be found – or even die – before the work is finished, your finances will be safeguarded by this insurance. If you do not have this, you could end up paying for incomplete, or poor quality, work.

Before anything is done, ask to see evidence of insurance and make certain that it will pay out for everything your project involves and is worth.

Failing to Review the Contract Properly

The specifics of a builder’s licence ought to be plainly visible within your building agreement, and the agreement needs to explain what the job involves, how payments will be made, when things will happen, and how disagreements will be settled. 

A number of property owners end up agreeing to contracts without reading these points through properly, consequently, arguments can arise regarding alterations, hold-ups or charges that were not predicted. Should you not understand anything in the agreement, get help from a lawyer or somebody who advises on building work. It is not of incurring much expense when you think of how much the whole job is worth.

Not Checking the Builder’s Track Record

A lot of people who own their homes depend on reviews they find on the internet, and what friends and neighbours tell them. Although these are useful, they will not always show everything that needs to be known. Things like previous times a company was stopped from working, bankruptcy, or lots of people making the same complaint, may not come up in a straightforward search.

Tools for checking things out yourself can give a more complete understanding of whether a business has a license and is following the rules. That way you get a further defence when you are choosing a tradesperson.

Protecting Your Investment

Constructing, or having work done on, a property is a substantial monetary and personal commitment. Not bothering to properly check a tradesperson’s accreditation could put you at needless peril. You should invariably establish the licence is valid, verify their insurance, peruse the agreement in detail, and look into the company’s history.

According to BuilderInsights Australian homeowners have the tools to make smarter and safer choices.