So you've decided to build your dream home. Congratulations! Now comes the hard part: finding a builder who can actually deliver on their promises.
It's easy to get caught up in flashy marketing and glossy brochures, so go in with your eyes wide open. Due diligence on project home builders is critical before you sign anything: ask lots of questions, get references, understand the build process, and make sure you agree on budget, timelines, quality and expectations.
It may seem tedious, but it will save you a ton of headaches down the road. Trust me, you'll thank me later.
C4 - Asking the Right Questions Checklist
$59.00 AUD
Checklist Type: Minor
Form Factor: Fillable, print-ready PDF (A4, 15 pages) plus the C4 Explainer PDF (35 pages)
When to use: Choosing a builder (before you pay a deposit or sign)
102 questions to ask every builder on your shortlist, including a visual check of one of their current sites. Compare like for like and choose your builder with confidence before you pay a deposit.
What Is Due Diligence and Why It Matters
What exactly is due diligence?
Due diligence means researching and verifying key details about a builder before you sign a legally binding contract with them. That includes:
- Their experience and track record. How long have they been building homes? Do they have a solid reputation? Ask for references from past clients.
- Their financial stability. You want to know they can see your build through. In Queensland, search the builder on the QBCC licence register: check the licence class, financial category, and any disciplinary history or directions to rectify. Search ASIC for the company's directors and any insolvency notices, and search the builder's name plus "QCAT" for tribunal decisions.
- The specifics of your contract. Understand every term before signing. In Queensland, the deposit for a contract of $20,000 or more is generally capped at 5%, you have a five-business-day cooling-off period, and progress payments must match completed stages. What happens if costs go over budget? How are variations managed? Be crystal clear on everything.
- The quality of their work. Tour some of their current and completed builds. Look for signs of high-quality craftsmanship and materials. Talk to homeowners about their experience.
- Standard inclusions versus display home specifications. Are you getting what you think you are? Get it in writing.
- Communication. How well do they keep clients informed? Who is your contact at each phase, who else can you go to if you can't reach them, and how do you escalate an issue?
Key Areas to Research About Project Home Builders
Financial stability and experience
Have they been in business for at least 5-10 years, with a track record of completing projects? Check reviews from past clients (and ask whether those clients are family or friends of the builder). Membership of HIA or Master Builders shows commitment to the industry, but it's not a quality guarantee, so check the QBCC register too. You want a builder with the experience and financial stability to avoid delays or, worst case, going broke during your build.
Quality and workmanship
Look at the builder's previous projects and ask to inspect some current builds. Talk to previous clients about the workmanship and whether any major issues came up after handover.
Communication and customer service
How does the builder keep you updated during the build? How quickly do they respond to questions and issues? Communication can make or break your experience.
Inclusions and specifications
Compare inclusions and specifications across builders: material quality, grades and brands. Read the contract in detail so you know exactly what is and isn't included.
Questions You Must Ask Before Signing a Contract
Before you sign with a project home builder, ask these questions.
What’s your track record?
How long have they been building homes in your area, and can they show a track record of quality work? Check Google reviews and productreview.com.au, and search the builder's name plus "QCAT" to see if they've been to the tribunal.
Who’s on your team?
Inquire about the builder’s staff and subcontractors. Are they licensed, insured, and properly trained? How long have they worked with the builder? Ask for references if possible. The people actually constructing your home will have a huge impact on the final result.
What’s your warranty and customer service like?
Things can and do go wrong. In Queensland, the standard QBCC contract gives you a 12-month defects period from practical completion, and the QBCC Home Warranty Scheme covers non-structural defects that appear within 6 months (lodge within 7 months) and structural defects for 6 years and 6 months. Ask what the builder offers on top of that, and how their customer service handles issues during and after construction.
Can I see examples of your work?
Don't take the builder's word or marketing at face value. Ask to see other homes they've built, ideally in the same area and price range as yours. Seeing their work in person is the only way to properly judge quality.
Red Flags to Watch Out for With Builders
Watch for these warning signs:
Lack of References
Reputable builders will happily give you references from previous clients. If a builder is hesitant or can't, that's a major red flag. Speak to several references and ask open-ended questions.
Vague or Dodgy Contracts
Look for a contract that clearly sets out each stage of construction, the payments tied to each stage, and both parties' responsibilities. Avoid builders with vague contracts, or who push you to sign before your questions are answered. Have the contract reviewed by a construction lawyer before you sign.
Poor Communication
Watch how the builder communicates in your first meetings. Do they listen and give clear answers? If communication is poor from the outset, it will only get worse once construction starts.
Cheap Pricing
A competitive price is attractive, but be wary of anything that seems too good to be true. Ultra-cheap pricing often means corners get cut. Your home is a long-term investment, so choose a builder who will do the job right.
These warning signs don't always mean walking away, but they should prompt more digging before you sign.
Making an Informed Decision Based on Your Findings
Now weigh up what you've found. The builder you pick will build what is probably your largest investment.
Some key things to consider:
- Experience. An established builder with many years of experience will likely understand the complexities of the build process better than a newcomer. They’ve learned from past mistakes and have refined their practices.
- Customer satisfaction. Look for consistently positive reviews about workmanship, communication and fixing issues. Negative reviews are inevitable, so watch how the builder responds to them on Google and productreview.com.au.
- Contract. Double-check that the contract outlines exactly what is included in your build, like specifications, allowances, and additional fees. Understand all terms and conditions fully before signing.
- Price. Consider the overall value and quality you’re getting for the price. An estimate far lower than competitors could indicate cutting corners. Don’t get lured in by a deal that seems too good to be true.
- Credentials. Choose a builder who is properly licensed (check the QBCC register) and insured.
Take your time. Discuss your findings with your partner, family or a building professional, and go with both your head and your gut.
Conclusion
Ask the tough questions, get everything in writing, check the QBCC register and references, and only sign once you're completely satisfied. Do the homework now and you'll build with confidence.
