Questions to Ask Builder Before Signing Contract
Months or even years before deciding to build your new home, you’ve already had the design in your head. You’ve thought about how many rooms to build, the colours, the fixtures and fittings, or the items of furniture to use. To watch it being built and rise out of the ground should be an exciting time! However, choosing the wrong builder will prove to be very costly and stressful. More often than not, new homeowners enter into a building contract without checking out their builder’s credentials.
When building a new home, your builder will be there from start to finish. There are important factors that you need to consider that can make or break your home building experience.
Here are some questions to ask your builder before signing your contract (and to confirm if they’re right for you).
- Are you a registered builder? This is the first important question to ask. Do NOT sign the contract until you have confirmed these details. You need to make sure that you are dealing with experienced and qualified builders especially if your home design requires special construction skills. To check if your builder is registered, visit the Victorian Building Authority website.
- Are you insured? Aside from being registered, this is also one of the basic requirements for builders. This is to protect you, the homeowner, in a variety of situations – the non-completion of your building contract, or if the builder fails to correct any defects. Insurance coverage will ensure your project is not affected and will continue. You can ask for their certificates.
- How will we communicate throughout the building process? Building a home can be stressful especially if it does not progress as expected. As early as planning up to construction, there will be many questions asked and decisions to be made. Your builder should always keep you on the loop with everything happening onsite.
- Can we see examples of your previous projects? Yes, credentials are important but they won’t matter without proof, would they? Ask your builder for examples of completed projects (or a project in progress), ideally similar to the one you’re planning to build. You can ask for photos just to avoid touring someone else’s home which can be a bit invasive.
- Can you provide references or reviews from your previous clients? Ask your builder if they can give you contact details of clients they have completed projects for. Businesses can put anything on their website, they wouldn’t add a bad review in there. So you have to speak directly to previous clients about their experience with the builder.
- What kind of warranties do you offer? A reputable company will be willing to back their ability to construct a quality home. Be sure to confirm the warranty periods they offer.
- What will be the procedure if I want to change the plans or specifications? Your building contract must provide flexibility if you ever change your mind on certain elements in your home without excessive costs.
- Can you give me a definitive price to build my home? Ask your builder the total construction cost of your project home early in the process. You should also ask about the features that are included with that price. Be sure to confirm what is and isn’t included in the price and the contract and if the price is a quote or an estimate.
- What are your payment terms? Most reputable builders will not ask for upfront payment. They should ask for progress payments at various stages of the construction and the final balance should be paid upon satisfactory completion of your home project.
Make sure that you understand what your contractual obligations are, as well as your builder’s before signing anything. If you want anything changed, this is the time to let your builder know and to negotiate if needed. Once you are sure your builder is the perfect fit for you and your build, then you are ready to embark on the next step towards building your dream home.
The adventure begins!