The most expensive words in residential construction are "I wish I had asked that before I signed." Every year, Sydney homeowners hand over hundreds of thousands of dollars to builders they barely vetted — and some of them end up in court, in unfinished homes, or with defects that cost more to fix than the original build.
This checklist is designed to prevent that. These 15 questions are the ones experienced homeowners, project managers, and lawyers wish every client asked before signing a building contract. Some will make an average builder uncomfortable. That is the point.
Part 1: Licensing, Insurance, and Track Record
01
Can I see your builder's licence — and can you show me it is current with no disciplinary actions?
Why this matters: In NSW, builders must hold a licence issued by NSW Fair Trading for work valued over $5,000. You can verify any licence online at the Service NSW public register. Look for the correct class (Builder — not just Carpenter or Supervisor), an active status, and no disciplinary actions or insurance claims against the licence. If they cannot produce their licence number instantly, walk away.
02
Do you carry Home Building Compensation Fund (HBCF) insurance — and can you show me the certificate for my specific project?
Why this matters: HBCF insurance (formerly Home Warranty Insurance) is mandatory in NSW for any residential building work over $20,000. It protects you if the builder dies, disappears, or becomes insolvent. The builder must provide a certificate of eligibility before taking any deposit. No certificate, no contract.
03
Can I visit two of your completed projects and speak to the owners?
Why this matters: Photos lie. Physically walking through a home the builder completed two or three years ago reveals the truth about their workmanship — how the joinery has held up, whether there are settlement cracks, how the waterproofing is performing. Speaking to past clients without the builder present tells you what the experience was actually like. Browse our completed Sydney projects and see how the work has held up.
⚠ RED FLAG
"We don't have any completed projects you can visit" or "Our clients value their privacy"
Every builder with genuine experience has at least one or two past clients willing to show off their home. If they cannot produce a single reference, they are either inexperienced or hiding something.
Part 2: Contract, Cost, and Timeline
04
Is this a fixed-price contract or a cost-plus contract — and what happens if costs overrun?
Why this matters: A fixed-price contract gives you certainty — the builder absorbs cost overruns (except for client variations or unforeseen site conditions specified in the contract). A cost-plus contract means you pay the actual costs plus a builder's margin — and if costs blow out, you wear it. For most homeowners, a detailed fixed-price contract is the safer choice. If you do sign a cost-plus, cap the total at 15% above the estimate.
05
What is specifically excluded from this quote?
Why this matters: Exclusions are where builders hide costs. Common exclusions in under-quoted contracts include: landscaping beyond basic turf, driveway beyond plain concrete, letterbox, clothesline, window furnishings, flyscreens, TV antenna, fencing, stormwater detention tanks (required in many Sydney LGAs), and BASIX upgrades. A good builder lists every exclusion clearly so you can budget for it.
06
What is the realistic timeline — including approvals — and what happens if you miss it?
Why this matters: Many contracts include a construction period but exclude the approval phase — meaning the "start" date can drift by months with no consequence. Ask for a timeline that covers the entire project from contract signing to handover. Ask whether there is a liquidated damages clause: if the builder exceeds the agreed timeframe due to their own fault, do they pay you a daily rate to cover your holding costs?
07
Who will be on site every day — you personally, or a site supervisor? Can I meet them?
Why this matters: The person you sign the contract with is often not the person who will actually build your home. You want to meet the site supervisor who will be there daily — because that relationship matters more than the salesperson you signed with. Ask how many projects they are managing simultaneously. More than three or four at once means your project is not getting their full attention.
Part 3: Quality, Variations, and Disputes
08
What is your defect rectification process — and what is your defect liability period?
Why this matters: NSW law mandates a 2-year statutory warranty for minor defects and a 6-year warranty for major defects. But beyond the legal minimum, what is the builder's actual process for handling defects? How quickly do they respond? A good builder should describe a clear process: you notify them in writing, they inspect within a defined timeframe, and they rectify within a defined period. Vague answers are a warning sign.
09
How do you handle variations — and can I see a sample variation form?
Why this matters: Variations are where costs blow out. A proper builder uses a formal variation document that describes the change, states the cost impact, and states any timeline impact — and requires your written approval before proceeding. No variation should ever be a verbal agreement, no matter how small. If they say "we'll sort it out later", do not proceed.
10
Who are your main subcontractors — and how long have they worked with you?
Why this matters: Builders do not build homes alone. Their subcontractors — concreters, carpenters, plumbers, electricians, plasterers, tilers, painters — determine the quality of your finished home. A builder with long-term, loyal subcontractors produces consistent quality. A builder who hires the cheapest crew for each job produces inconsistent results. Ask specifically about their tiler and their carpenter — those two trades have the most visible impact on your daily experience of the home.
11
How do you communicate progress — and how often will I receive updates?
Why this matters: Poor communication is the number one complaint about builders. Set expectations before you sign. Will you receive weekly progress reports? Photos? A client portal? Scheduled site walks every fortnight? What is the builder's response time if you email with a question — same day, 48 hours, a week? If the answer is vague or the builder seems dismissive about communication, expect silence during the build.
12
What happens if we have a dispute — is there a dispute resolution clause in your contract?
Why this matters: Disputes happen — even on well-run projects. A professional builder's contract includes a clear dispute resolution process: informal discussion first, then mediation, then arbitration or NCAT as a last resort. The absence of a dispute resolution clause means any disagreement could go straight to lawyers, which benefits no one except the lawyers.
Part 4: The Details Most People Miss
13
What allowances have you included for fixtures and finishes — and are they realistic?
Why this matters: Builders often include "PC sums" (Prime Cost allowances) for items you select later — tapware, appliances, tiles, light fittings, door hardware. If the PC sum for your kitchen appliances is $5,000 but the oven and cooktop you actually want cost $9,000, that extra $4,000 is a variation you pay. Ask to review every PC sum in the contract and check whether it realistically covers what you want. A builder who sets low PC sums is not saving you money — they are deferring your costs.
14
Is there a single point of contact throughout the project — and who is it?
Why this matters: You should have one person you call for everything — a project manager or site supervisor who knows your build intimately. If the builder says "you can talk to anyone in the office", what they actually mean is "no one person is accountable for your project."
15
What will annoy me about working with you?
Why this matters: This question catches people off guard — and that is deliberate. Every builder has quirks, communication styles, or operational realities that might frustrate a client. A self-aware builder will give you an honest answer ("I'm not great at returning calls on weekends" or "I tend to be conservative with timelines because I'd rather under-promise"). A builder who claims there is nothing that will annoy you is either not self-aware or not being honest — neither is a good sign.
Before You Sign — Your 3-Point Final Check
1. Verify the licence online at verify.licence.nsw.gov.au — right now, not later. 2. Read the entire contract — not just the quote page. Pay particular attention to exclusions, PC sums, and the variations clause. 3. Trust your gut. If the builder seemed dismissive of your questions, pressured you to sign quickly, or was vague about details that matter to you — those feelings will not improve after you have handed over a deposit.
How We Work
At Kadmia Constructions, we encourage every prospective client to ask every question on this list — and any others that matter to you. We have been building custom homes across Greater Sydney for over a decade, and we believe that an informed client is the best client. Our five-stage process is designed to answer these questions before you ever need to ask them.