Choosing the right builder is the single biggest decision in any building project. Get it right and the process is smooth, communicative and well finished. Get it wrong and it can mean delays, cost blowouts and work you have to pay someone else to fix. Here's how to tell the difference before you sign anything.
1. Check the licence — properly
In NSW, residential building work over a set value must be done by a licensed builder. Don't just take "we're licensed" at face value — ask for the licence number and check it on the NSW Fair Trading website. You can confirm the licence is current, held by the right entity, and covers the type of work you need.
2. Confirm insurance and statutory cover
A reputable builder carries appropriate insurance. For residential work in NSW above the statutory threshold (currently $20,000), Home Building Compensation (HBC) cover is required and must be provided before work starts and before taking a deposit. Ask how insurance applies to your specific job.
3. Understand the statutory warranties
Residential building work in NSW comes with statutory warranties under the Home Building Act — broadly 6 years for major defects and 2 years for other defects. A trustworthy builder will happily explain how these protect you rather than gloss over them.
4. Look at real, relevant work
Ask to see examples of completed projects similar to yours. Photos of finished work — and, where possible, references from past clients — tell you far more than a sales pitch. Pay attention to the quality of the finish and whether the style matches what you want.
5. Get a clear, written quote
A good quote is itemised and specific about what's included and excluded. Be cautious of a price that's dramatically lower than everyone else's — it often signals missing scope that reappears later as variations.
Questions worth asking
- What's your licence number, and can I verify it?
- What insurance and statutory cover applies to my job?
- Who is my point of contact during the build?
- How do you handle variations and unexpected issues?
- What's the payment schedule?
- What's a realistic timeline, and what could affect it?
6. Judge the communication
How a builder communicates before you've signed is the best preview of what working with them will be like. Are they responsive? Do they explain things clearly? Do they set realistic expectations rather than telling you only what you want to hear?
The cheapest quote and the best outcome are rarely the same thing. Value comes from work done right the first time, communicated clearly along the way.
Red flags to avoid
- Reluctance to provide a licence number or put things in writing
- Pressure for large cash deposits up front
- No written contract or vague scope
- A price far below every other quote
- Poor or slow communication during quoting
Do these checks and you'll dramatically reduce your risk — and you'll know you're working with someone who stands behind their work.
See the building services Aurum Built offers across Sydney, or read our FAQ on quotes, licensing, insurance and warranties.
Guides Licensing NSW