How do you choose a builder to build your new home or renovation?

Beyond price, how do you choose the builder? What can we do to reduce risks and make the right choice?

How do you choose a builder? Every client asks this question. 

It’s a discussion that causes a bit of anxiety. The reliability, capability and suitability of your prospective builder is up there as one of the biggest sources of fear for anyone embarking on a renovation or new build.

The good news is that it is NOT entirely up to you to solve this problem. Over time, an architect will usually build a stable of preferred builders to recommend to their clients on a case by case basis. Architects carefully consider what type of builder is suited to your project, based on project size, budget and past experience. They will discuss these options with you and if you have a particular builder in mind, they will assess them to see if they are appropriate. It is a three way relationship between yourselves, the architect and the builder, so all parties need to trust each other in the knowledge they can work comfortably together.

Once you have agreed on your shortlist of builders, there is a tender process. This is an invitation to a range of builders to review the same set of design documents and respond with a price.

The list of builders included in that tender process will usually come from your recommendations, if you have any, in addition to reputable builders we have worked with successfully in the past.

Once the prices are returned, the hard part begins: selecting the builder. This becomes even more difficult if the prices fall into a narrow range - which is becoming more common.

When a tender provides a close range of prices, price is no longer the main factor to consider.

There are a number of important factors to take into consideration to reduce risk. Building your dream home or renovation is a big job, and a lengthy commitment.

In this article, we will share the due diligence steps we recommend to our clients to ensure they are making the best decision.

Do they have experience working with an architect?

What makes a successful residential project? The three-legged stool. The client, the architect, the builder. You need to find someone who fits with the team.

We need to find people who “get” the process of working with an architect, and who want to work with architects: because it’s slightly different to projects without one. Typically an architect designed house has more focus on craftsmanship and careful detailing. Some builders embrace this but for others, they may not have the right experience may just want to find the fastest or most cost effective solution at the expense of details. Neither approach is right or wrong, however it’s about the right “fit” for your architect designed project. Why invest the extra money with a beautiful design if it’s not going to be carefully executed on site?

Is their past work successful?

See their body of work. See other projects they’ve built to get a sense of the build quality. A builder should be proud to show you their past work. Check builder references: existing clients, other architects and collaborators. 

Does their site look professional?

You can’t underestimate the value of seeing one of their active sites too, the setup, the neatness, the degree of professionalism.

It’s worthwhile to invite your architect too, they’ve seen a lot of sites, they know what to look for - the warnings signs. We’d never recommend a builder where we haven’t had the opportunity to visit one of their sites.

Does their team look capable?

The foreman matters. Meet them. The same builder can build projects with very different outcomes depending on the foreman in charge on site. Do they understand how the big picture goes together? Are they thinking ten steps ahead? Think about what’s coming up in several weeks? 

Meeting their team can also help to explain any differences in their tender price. They may have access to experts with specialised knowledge to add to your project that other builders don’t.

Do they have the necessary business fundamentals?

Visiting sites and finished buildings provides valuable information on your prospective builder, but it doesn’t protect you from the biggest area of risk your project faces: cashflow.

Cashflow is one of the biggest risks to a construction project. It doesn’t matter how good of a builder they might be, you can run into big trouble if they don’t have the necessary business skills and processes. It is a really tough time for builders. Make sure you and your architect have done thorough research.

Is there plenty of detail in the quote? Are they asking the architect plenty of technical questions? Your architect will need you to guide you here, but a red flag could be an over simplistic quote without much detail. Do they really get how much work is involved? A detailed quote will ensure they have considered all the factors and materials in your build so there are no nasty surprises.

Conclusion

The risk of having a poorly matched builder on your project is just enormous. You’ve invested a lot in the design of your home, and making a hasty decision when choosing a builder can lead to disaster. Due diligence is essential. Whilst the temptation is there to simply go for the cheapest quote, just remember it’s not worth investing all your time and energy in the design of your house, if it is going to be poorly executed on-site.

The build journey is long and arduous, so it is important to go with a builder you trust and feel comfortable with. In every build there are inevitable challenges around either timing, budget or supply, so you will need to be prepared to work together and sometimes compromise. And remember, your architect will be there as a guide through the process and to help resolve issues for a better outcome.