When building your own home, you want things to be pretty much perfect.  One of the best ways to make sure the journey goes according to plan is to do your due diligence and choose the right builder.

Is the price right?

One of the biggest factors that determines the scope of a new-build is price. Compare quotes from different building and development companies. Pay attention to how much detail is provided in each quote, what’s included and what isn’t. If a quote is significantly cheaper or more expensive than the others, it's important to understand why. Perhaps the materials are of lesser or greater quality, or maybe the cost of a project manager has been excluded. If they can’t justify the price, then they shouldn’t be considered in your list of potential builders.

Read more: How building new can create capital gains

Assess the quality of communication

Choose a building company that has a reputation for having good communication with their clients, as well their contractors and subcontractors. Take time to talk to a few companies to get a feel of what they would be like to work with.

If you feel they don’t understand your vision, are not being upfront with you, or are pressuring you to sign a contract without addressing your concerns, it’s simple. Don’t hire them. Ask for the addresses and contact details of other customers they have built houses for. Check references, feedback on social media sites, and reviews on websites like BuildersCrack. Bad feedback and complaints around communication should sound alarm bells and make you think twice.

Contractor or cowboy?

How established is the business? Checking the Companies Office website will tell you how long they’ve been operating for. You should also check the Registered Master Builder Database to ensure they’re Licensed Building Practitioners (LBP) and sufficiently qualified.

Do your homework to find out whether the builder you’re hiring is a cowboy in disguise who can pack up and ride out of town at a moment’s notice.

• Do they have signwritten vans?
• Is there a company website?
• Are they using Xtra, Hotmail, Yahoo, or Gmail as their email provider?
• Do they have a landline phone or only a cell-phone number?
• How long have they been in business?  

LBP’s and Registered Master Builders might be more expensive than contractors without the same accreditation, but you’ll be covered in the long term by  guarantees and warranties, which safeguard you against future problems.

Assess their reputation

Choose a building company whose work will retain its value if you decide to sell. When looking for builders, choose one that has a good reputation for delivering quality. Check advertised properties for sale where the name of the building company is specifically mentioned. By including the name of the company, the agent clearly thinks it adds value to the sale description.

With so many building companies on offer, doing your due diligence when building a new home has never been more important. You want a company that respects you, understands your needs and has your best interests at heart, without having to go overboard on the cost. 

'How to choose a builder' is only one consideration. If you are thinking about building a new home, then download our home build guide to help you on your journey.