Knowing the building contractor warning signs can help homeowners avoid costly surprises and choose a builder they can trust. In this second part of our Choosing the Right Builder series, we explore what to look out for and what you should expect throughout construction.
Two or three days before our formwork contractor was due to start on one of our builds, we called to confirm. He told us he couldn’t start on the day we had scheduled him for, so we asked which day would suit him instead. His answer was that he couldn’t do the job at all.
He had been booked three months ahead, and we had kept him updated the whole way: the job was on track, and the trades before him were running to time. It was also during COVID, when finding a specialist trade at short notice was hard.
So we rescheduled the program of works so other contractors could keep the job moving, kept the client informed throughout, and found a new formwork contractor. It did cost some time, but rescheduling kept the delay to a minimum.
Things like this happen on every build. Jonathon Armstrong, our Co-Director, compares a good builder to a duck on the water: calm on the surface, legs working hard underneath. Most problems are sorted out on site and never affect your build. The ones that do should be explained openly and early.
So choosing a builder isn’t only about the price. It is about how they will behave once you are committed. Here is what we look for, and what a well-run build should feel like.
Warning Signs, and Good Signs
One warning sign is a builder who only wants to be responsible for the house. They ask you to organise the site works, earthworks or engineering yourself, then come in to build once the site is ready.
Earthworks are the foundation of the whole house. If something goes wrong there, it affects everything built on top, and you carry that risk and its unknown costs. A builder should be willing to take on the whole job, though you can still choose to handle a part of it yourself if you have the right people.
If you’re building in the Perth Hills, ask early whether a builder is comfortable with your type of site. Not every builder takes on Hills blocks, and many prefer a flat, sandy site. You want one who has built on slopes, rock and clay before.
A good sign is a clear process from the first meetings: when you will hear from them, the standard timeline and what they are aiming for, so you can see whether things are ahead or behind.
Check Credentials, Past Projects and References
- Building and Energy publishes a register of builders, searchable at Find a Registered Builder on wa.gov.au. Check that the company you are speaking to is the one that is registered.
- Building permit and home indemnity insurance. In WA, residential building work over $20,000 that needs a building permit must be covered by home indemnity insurance, taken out by your builder in your name. Ask whether the builder will apply for a building permit for the whole job. Be wary of any suggestion to split the work into separate contracts or leave parts of it off the permit, as that work may not be covered. Your builder must give you the insurance certificate before starting work or asking for a deposit, and the builder’s name on it should match the register.
- Past clients. Some clients prefer privacy, so not every builder can share contacts. If you can speak to one, ask how the builder handled something that didn’t go to plan, and whether they would build with them again
- A site underway. Ask to see one. For safety, we arrange a site meeting rather than letting visitors walk in, with the owner’s permission. A builder who won’t show you any current work is worth asking why.
A tidy site tells you a lot. It shows pride and organisation, and trades who arrive to a clean site tend to leave it clean. A building site is always on show.
Communication During Construction
When Nigel started Patton in 1984, there were no mobile phones or email. A change to the plans meant posting a new set, which could take a week to arrive. So everything had to be resolved before work began: selections made, details drawn, trades booked.
That discipline still serves our clients well. Decisions made early mean materials ordered on time, trades booked ahead and fewer costly changes once building starts.
Today, keeping clients involved is easier than ever. Progress photos and updates reach you within minutes, even if you live remotely or are away. The risk is that changes feel just as easy. A change sent by email in a minute can still mean reordered materials, rebooked trades and a later handover. Plan like it’s 1984, and communicate like it’s today.
Who you speak to day to day matters less than knowing exactly how to raise a question, a concern or a change. Having the supervisor’s mobile isn’t always the most efficient option, because they may be mid-conversation on site when you call. Clarity and consistency matter more. At Patton, Emily, our Client Liaison, is your main point of contact, so you know exactly where to go.
Variations, Delays and Progress Payments
Variations should be priced and agreed before the work is done. A good builder first confirms they have understood what you asked for, then prices it. For larger changes, an early ballpark helps, such as letting you know a change is likely to be over $10,000 and checking you still want to proceed. You shouldn’t be rushed into a decision you will live with for 20 or 30 years.
Delays and problems that affect you should be explained openly and early: a delay of weeks rather than days, a design change, a new handover date or a cost.
Progress payments should tie back to work that is actually done. On a fixed-price contract, stage claims are made at set points such as slab, walls up, roof cover, lock-up and finals, with extra stages on some jobs for items like cabinetry, tiling or landscaping. More complex builds can use percentage claims, where the job is split into categories such as concrete works, masonry, roof plumbing and tiling, each tied back to the specification. If the footings are in that equals 20% of the concrete scope, 20% of the concrete budget is claimed that month.
Some builders may suggest a cost-plus contract, and it can feel like a smart way to manage your project’s costs, because you see every invoice. But there’s no fixed price, so you take on the cost risk. You pay what the builder pays for labour and materials, plus an agreed fee or markup, and if costs rise or something takes longer than expected, you pay the difference.
We prefer to give our clients the peace of mind of a fixed-price contract. If you ask for a change, it’s priced and agreed through a variation before the work is done, so you know the cost ahead of time. Under cost plus, you may only find out about an overrun as you approach the limit of your budget.
Choosing the Right Builder for Your Project
Is the cheapest builder ever the right choice? Jonathon won’t rule it out. If a builder quotes exactly the same specification, communicates well and shows quality work, they may simply be able to do it for less. As a general rule, though, if a builder is a lot cheaper than the rest, “something’s wrong, something’s been missed.”
The right builder will also tell you when they are not the right fit. We don’t typically build investment homes, as they usually call for the most economical fittings and finishes. “I like to build people’s family homes,” Jonathon says. We don’t typically take on a new kitchen, a bathroom or a small extension either, as our costs mean we won’t be the most economical option, and we will suggest a smaller operator or carpenter-builder who specialises in that work. If a client still wants to build with us, we are happy to, and we are upfront about the cost.
Finally, make sure you get along. A build can run for one to two years, and your relationship with your builder carries on well after handover. There may be times when something doesn’t go to plan and there is frustration or concern. A good working relationship means those moments can be talked through openly and resolved well, so you get the best outcome for your home.
The right builder is one you get along with, whose process you can follow, and who tells you the truth early, even when the news is a delay, a cost or that they aren’t the right fit for you.
If you are still comparing quotes, start with Part 1: What to Check Before You Sign a Building Contract
Planning a build and want to talk it through? Book your Free Discovery Session.