Confirm the licence
Look the builder up on your state building authority's register. Check the licence is current and the class covers your type and scale of work. This is free and takes minutes.
Identify the actual company
The name on the sign isn't always the entity you're contracting with. Find the company behind the trading name and note the ABN and the directors. You'll need this for everything that follows.
Check the company and directors on ASIC
How long has the company traded? Who runs it? Are there related companies? Have the directors been involved in businesses that failed? This is where a lot of risk first becomes visible.
Look at finances
A business credit risk score and any recorded payment defaults tell you whether the builder can fund your job. This is the part most people skip, and it's often the part that matters most.
Search disputes and warnings
Court judgments, tribunal decisions, building authority disciplinary actions and public warning registers. A pattern here is worth far more than a single entry.
Read the reviews properly
Reviews are useful but easy to game. Look for consistent themes across independent platforms, especially complaints about delays, payment and unfinished work, rather than the star rating alone.
Confirm insurance
Make sure the required domestic building or home warranty insurance is in place for your project value, with the right builder named on it.
The honest summary
Steps 1, 2, 3 and 7 you can do yourself with some patience. Steps 4 and 5 are where it gets hard, because the data is paid and the interpretation takes experience. If that's where you'd rather hand it over, that's exactly what a due diligence report covers.
Related: Verify a Builder
Related: Builder Due Diligence in Australia: The Complete Guide
Have us research the builder for you
We handle steps 4 and 5 - and everything else - so you can make a decision with confidence.