A Comprehensive Guide to Finding a Builder for Your Home or Extension in Melbourne

How do you know if a builder will deliver on their promises? How can you tell if their credentials are real or just clever marketing? Finding the right builder is one of the most crucial decisions you’ll make for your home.

Budgeting and design are demanding on their own, and licensing rules make it tougher. Victoria requires registered builders for work above $10,000, while single trades don’t. It’s a lot to weigh when trying to find the right fit.

RFT Solutions provides tendering services to help you choose the right builder. We handle the tender process and cover every detail from budgeting to legal requirements.

Know the Legal Requirements in Australia

Begin with the overall legal obligations for builders, then review how they are enforced by your state’s building authority.

Builders who breach regulations, fail to meet contractual obligations, or perform defective work can be fined, suspended, or permanently disqualified from holding a licence.

Building a Shortlist of Qualified Local Builders in Melbourne

Ask for Referrals from Past Clients

When gathering referrals, go beyond general praise. Ask questions that reveal how the builder actually works. 

• Were they clear and accurate with timelines and costs?
• How well did they communicate during the project?
• Were there any major delays, and how were they handled?
• Was the quality of workmanship consistent from start to finish?
• Would you hire them again for another project?

Verify Licences, Insurance, and Track Record Review Their Portfolio

A builder’s past work is one of the strongest indicators of future results. When reviewing portfolios, check for these fundamentals:

Verify Experience and Background

Before hiring a builder for a new home or home extension in Melbourne, confirm they’ve successfully completed projects similar in size and complexity to yours and have a clean professional record. This proves they can meet the technical, logistical, and regulatory requirements of your build.

Home Warranty, Financial Protection, & Domestic Building Insurance 

In Victoria, builders must take out DBI for residential building works valued over $16,000 before starting. It reassures homeowners that they’re protected financially if the builder dies, becomes insolvent, or disappears before completing the work or fixing defects. It reinforces your advice to request proof of insurance and to verify the certificate with the insurer before paying any deposit. 

Before hiring a builder, make sure they also carry public liability insurance, which covers injury or property damage that might occur on-site during construction. Most licenced builders hold policies from major Australian insurers such as QBE Insurance, Allianz, or CGU Insurance. 

They must also have workers’ compensation insurance to protect all trades and labourers on your site in case of work-related injuries.

Request and Compare Detailed Quotes

When you’re ready to hire a builder, gather at least three quotes based on the same design, plans, and specifications. Each quote should clearly itemise the following:

✔ Materials – type, quality, and quantity of products to be used

✔ Labour – estimated hours and cost of trades involved

✔ Timeline – projected start and completion dates, including milestones

✔ Allowances (PC/PS sums) cover estimated costs not yet finalised in your builders quotes. For example, PC (Prime Cost) items like taps or toilets, and PS (Provisional Sums) for work such as plastering or site preparation.

Know Your Rights as a Homeowner

Under the Australian Consumer Law (ACL):

• You’re entitled to services carried out with due care and skill.
• Builders must deliver work that is fit for purpose and completed within a reasonable timeframe.
• If work is faulty or incomplete, you can request repairs, replacements, or refunds.
• These protections apply even if they aren’t written in your building contract since they’re guaranteed consumer rights.

Each state and territory offers domestic building dispute services to help resolve issues without going to court. Below are the bodies that can mediate or make binding decisions on disputes over defective work, delays, or contract breaches.

• Domestic Building Dispute Resolution Victoria
• Victorian Civil and Administrative Tribunal (VCAT) in Victoria

Your Final Builder Checklist Before Signing Any Contract

Use this checklist as a last review to confirm your builder has the experience, systems, and safeguards your project needs.

Communication and Process

• Who will be my main point of contact throughout the project? 
• How do you manage delays caused by weather or supply issues? 
• How are cost changes handled?

Payment Terms and Warranties

• How is the payment schedule structured?
• What warranty coverage is included and how long is the defect liability period?
• Will all warranties and compliance certificates be provided in writing at project completion?

Every Great Home Starts With a Solid Plan

Don’t leave your dream home to chance. Every family starts with a blueprint. Make sure yours is in the right hands. Choosing a builder is simpler with RFT Solutions.