Building or renovating your existing home is most likely the largest investment you will make in your lifetime. However, it never ceases to amaze me how many people walk away from the experience feeling less than satisfied. As with any investment it is imperative you think not only with your heart but also your head. The most common complaints can be minimised by following my simple tips.

1. Check your prospective building company is financially secure

Check their full details on the QBSA website. Complete a company name search using the ASIC website. Ask your prospective building company for the director/s full names and DOB and you can also for a small fee complete a historical name search using any of the ASIC recommended companies.

2. Make sure your project supervisor is competent

Ask your prospective building company who will be site supervising your project. Will it be the nominated builder of the company or a site supervisor employee? If your prospective building company uses site supervisor employees ask for past client contact and written references pertaining specifically to that person as throughout your whole building experience you may not have any dealings with the actual company builder.

3. Discuss cost structure at the start of your relationship

Minimise the possibility of you project costs escalating by asking at your initial meetings what will be the percentage builder’s margin on variations. If you decide to make changes to your plans after your contract is signed you may find you are paying a significant percentage margin above the cost price to your builder. An acceptable margin is usually 20%.

4. Be wary of provisional sum allowances in contracts

Be informed as to your responsibilities if you sign a contact with provisional sums. The intention of a provisional sum is to cover the expected cost of a particular item e.g. crane hire. However, should the allowance be insufficient you will have to pay the extra amount, plus the builder’s margin on the extra amount. It is always better to get a fixed price for all work.

5. The internet can be a valuable tool

Check out review websites. They will often give the real deal on your prospective building company. I recommend visiting: www.productreview.com.au/c/home-builders.html