How to vet your builder

HIA contract vs Master Builders, fixed-price vs cost-plus, and the four red flags that signal builder insolvency risk.

10 min readBy Sarah ChenStage 3 of 6

A builder is a small business. A meaningful percentage go under each year. Due diligence is non-negotiable.

Four red flags

Asking for a deposit above 10% (legal max varies by state). Refusing to provide proof of Home Indemnity Insurance. Three or more recent QBCC/VBA complaints. Rapid expansion in the last 18 months without staff growth.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.