Tick items as you complete them — or print a blank copy to use offline.
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✓ Step 1 of 4 — Licence & identity
Verify who you are dealing with
Search the builder’s licence on the state government registerCheck it yourself — do not rely on a copy provided by the builder. Screenshot the result with the date visible. Confirm the licence is current, the category covers your project type, and no conditions are attached.
⚠ Do this the day you are about to sign — not just when you receive the quote.
Confirm the contracting entity holds the licenceCheck that the company or individual you are signing the contract with — not just a director — holds the licence. A director’s personal licence does not cover the company’s work.
Verify the ABN and company registrationLook up the ABN on the ABR (abr.business.gov.au) and check the company on ASIC Connect. Confirm the trading name matches the registered entity and check how long the company has been registered.
⚠ Multiple ABNs or company names in a short period is a serious red flag.
✓ Step 2 of 4 — Financial & background
Check their history, not just their licence
Order a background reportA licence search tells you a builder met minimum requirements at a point in time. A background report covers credit defaults, court records, tribunal appearances, company history, related entities and trading reputation. Order one before you sign anything.
⚠ This is the single most important step most homeowners skip.
Check for prior insolvencies and related entitiesSearch ASIC Connect for any companies associated with the builder or their directors. Prior liquidations, deregistered companies and phoenix activity patterns are all visible here. A background report from Always Check Your Builder will surface these automatically.
Search tribunal and court recordsQCAT, VCAT, NCAT and the other state consumer tribunals publish decision records. Search the builder’s name and company name. Multiple prior tribunal appearances are a significant warning sign.
✓ Step 3 of 4 — Insurance & contract
Protect yourself before work starts
Obtain and verify the certificate of home warranty insuranceYour builder is required by law to take out home warranty insurance (domestic building insurance) for residential work over the relevant state threshold. Obtain the certificate of currency and verify it directly with the insurer — not just the builder.
⚠ A builder who cannot produce insurance may be financially stressed or unlicensed.
Confirm the deposit is within the legal capMost states cap residential building deposits at 5–10% of the contract value. Do not pay above the legal cap regardless of what the builder requests. Check your state’s specific limit before paying anything.
Have a solicitor review the contract before you signBuilding contracts are complex. Have an independent solicitor — not the builder’s recommended legal contact — review the contract before you sign. Pay particular attention to variation clauses, progress payment schedules, and the defects liability period.
✓ Step 4 of 4 — References & site
Do the groundwork before you commit
Speak to at least two previous clients — not ones the builder choseAsk for a list of recent projects and contact previous clients independently — not the two polished references the builder provided. Ask specifically about: how disputes were handled, whether variations were excessive, and whether they would use this builder again.
Visit a current or recent job siteA visit to an active site tells you more than a reference call. Look at: how the site is managed, whether subcontractors seem settled and consistent, whether materials are well-stored, and how the builder interacts with their team.
Get three comparable quotes — and be suspicious of the lowestA quote 20–30% below the others is not a bargain. It usually means errors in costings, planned variation loading, or cash flow desperation. Compare quotes on a like-for-like basis and ask each builder to explain significant differences.
Before you sign
Not sure your builder passes the test?
A background report from Always Check Your Builder covers everything the licence register won’t show you — delivered confidentially, your builder never informed.
Order a background report →