A lot of Victorian builders have been going broke recently. And it’s homeowners who’ve been paying the price.
If your builder’s struggling financially, you’ll face delays and unexpected costs, at best.
At worst, they could abandon you altogether, dishonouring your warranty and leaving you with a construction site instead of the home you were promised.
Take What Happened to James and Melissa, for Instance
Things looked great at the start. The slab was poured, the framing went up, the windows arrived. It was all happening.
Over the next month, however, they noticed that the work had become sporadic. A day here. A half day there.
A couple of months passed like this… until literally no one was showing up at the site. And this whole time, their unroofed house, along with all the building materials, had just been sitting out in the sun and rain.
One day, they arrived at the site to find a truck from the window supplier. But instead of dropping off more materials, they were taking the windows back. The builder hadn’t paid the bill.
James tried calling the builder, but the answers he received didn’t add up.
Then Melissa did a little digging and uncovered the worst of it: the builder didn’t even have their own licence. They’d borrowed someone else’s. Which meant no warranty.
Half-finished, over budget, and stuck in limbo, James and Melissa learned (the hard way) what happens when a builder isn’t financially stable.
The good news is, you don’t have to end up like them.
Here’s How To Spot an Financially Stable Builder
Method #1: Verify the builder’s licence. While it’s technically not allowed, borrowing a building licence to cut costs is more common than you might think. If a builder’s doing this, they’re not legally accountable for your project. That means no warranty (and no one to turn to) if something goes wrong. To verify this, ask the builder for their licence number and check it on the Victorian Building Authority’s website. If you can’t find a match, walk away.
Method #2: Visit active building sites. If you’re not sure where they’re building, ask the builder directly. They should be happy to provide you with a few addresses of projects they’re working on right now. Once you’re on-site, pay close attention to what’s happening. Are materials being delivered and used, or are they just sitting there untouched? If you visit today and come back in a week, there should be visible progress. A site that’s moving forward steadily is a good sign. But if jobs are stopping and starting or the site looks abandoned, it’s a major red flag.
Method #3: Speak to tradespeople. Trades know everything. If the builder is good, they’ll tell you straight away. If they’re not getting paid, they’ll let you know that, too. Ask to speak to the trades who are working on the builder’s current sites. A good builder will provide you with the names of a few contractors they’re working with right now. When you speak to the trades, ask direct questions like, “Are you being paid on time?” Builders who don’t pay their trades are definitely struggling.
Method #4: Ask for references from previous clients. A financially stable builder will have happy clients who are willing to vouch for them. Ask the builder for references, and follow up with those clients to get an honest perspective. When speaking to previous clients, ask questions like, “Were there any delays?” and “Were there any issues with trades not showing up?” Clients who’ve had smooth experiences will be quick to reassure you.
The Bottom Line? Do the Work Now to Save Yourself Later
The signs of a financially stable builder are all there if you know where to look.
Taking the time to check these things now could save you from months of delays, unexpected costs, and the stress of an abandoned project.