Choosing the wrong builder can cost you $20,000 to $50,000+ in rectification work, 3 to 12 months of delays, and unfinished work. After 25 years in the industry, we’ve seen what goes wrong when homeowners pick a builder based on price alone or skip the due diligence.
This guide covers the warning signs to watch for. For the positive side, see our guide on how to choose a builder in Sydney.
1. No Written Quote or Vague Inclusions
If a builder gives you a ballpark number over the phone or a one-page quote with no detail, walk away. A proper quote itemises:
- Scope of work (exactly what’s included and excluded)
- Materials and specifications
- Allowances and provisional sums (and how they’re calculated)
- Timeline and payment schedule
- Council approval costs
At Dura Group, we provide detailed fixed-price contracts after our preliminary planning review. Every line item is spelled out. If a builder can’t or won’t do this, ask yourself why.
2. The Quote is Much Lower Than Everyone Else
If one builder quotes $150,000 and three others quote $220,000 to $250,000, the cheap quote is almost certainly missing something. Common tactics:
- Excluding council approvals, engineering, or BASIX
- Using large provisional sum allowances that blow out during the build
- Underspecifying materials (quoting basic finishes, then charging extras for anything reasonable)
- Not including GST
The cheapest quote rarely ends up being the cheapest project. Make sure you ask the right questions and compare like for like.
3. No Licence Number or Insurance
In NSW, any builder doing residential work over $5,000 must hold a licence from NSW Fair Trading. Understanding the difference between builders, contractors, and architects helps you hire the right professional. Check their licence at the Fair Trading website. Also confirm they have:
- Home Building Compensation Fund (HBCF) insurance for projects over $20,000
- Public liability insurance
- Workers compensation insurance
If a builder can’t produce these documents, do not hire them. Full stop.
4. No Fixed Address or Business Premises
A builder operating from a mobile number and a Gmail address with no fixed business address is a risk. Understanding what a home builder actually does helps you spot operators who can’t deliver the full scope. Legitimate building companies have an ABN, a registered business address, and a track record you can verify.
5. Demands Large Upfront Deposits
In NSW, builders cannot legally ask for more than 10% of the contract price as a deposit (for contracts over $20,000). If a builder asks for 20%, 30%, or more upfront, it’s a major red flag. It may indicate cash flow problems, which means your money could be used to finish someone else’s job.
6. No Previous Work to Show
Any decent builder can show you completed projects. If they can’t arrange a site visit, provide photos with addresses, or connect you with past clients, be cautious. At Dura Group, we’re happy to show you our completed projects and put you in touch with previous clients.
7. Won’t Put Changes in Writing
Verbal agreements about changes, additions, or credits during a build are a recipe for disputes. Every change must be documented as a written variation with a clear cost and timeline impact. If a builder tells you “don’t worry, we’ll sort it out,” worry.
8. Poor Communication Before the Build Starts
If a builder takes a week to return your call during the quoting phase, imagine what they’ll be like once they have your deposit. The way a builder communicates before they start is a preview of how they’ll communicate during the build.
At Dura Group, Mark is your direct point of contact from the first meeting through to handover. You’re not passed between salespeople, estimators, and project managers.
9. No Contract or a Bare-Bones Contract
A proper building contract covers:
- Detailed scope and specifications
- Fixed price (or clearly defined cost-plus structure)
- Payment schedule tied to milestones
- Timeline with start and completion dates
- Variation process
- Defect liability period and warranty terms
- Dispute resolution process
If the contract is a single page or feels rushed, get independent advice before signing. Our guide on how to read a building contract explains what each section means. A fair contract protects both you and the builder.
10. Pressures You to Sign Quickly
“This price is only valid today” or “I’ve got another job starting next week so I need your answer now” are pressure tactics. A good builder will give you time to review the quote, ask questions, and get independent advice if you want it.
What to Do Instead
- Get 2 to 3 detailed quotes and compare scope, not just price (our Sydney building costs guide gives you benchmark rates)
- Check the builder’s licence on the NSW Fair Trading website
- Ask to see completed projects and speak with past clients
- Read the contract carefully before signing
- Confirm the payment schedule is tied to completed milestones, not dates
- Make sure you ask these key questions before committing
Why Homeowners Trust Dura Group
- Fully licensed with NSW Fair Trading
- HBCF insured on every project
- Fixed-price contracts with detailed inclusions
- No material markups
- 25+ years of completed projects across the Sutherland Shire
- Mark manages every project personally
We’ve been building across the Sutherland Shire, including Gymea home builders, builders in Bangor, and Heathcote builders for over 25 years. Contact Dura Group or call Mark on 0424 665 793 for a straight conversation about your project.
Frequently Asked Questions
How do I check if a builder is licensed in NSW?
Search the NSW Fair Trading licence check tool online. Enter the builder’s name or licence number to verify their licence is current and covers the type of work you need.
How much deposit can a builder legally ask for in NSW?
For contracts over $20,000, a builder can ask for a maximum of 10% of the contract price as a deposit. Anything more is a breach of the Home Building Act.
What should be in a building contract?
A proper building contract includes detailed scope of work, fixed price, payment schedule tied to milestones, timeline, variation process, defect liability period, warranties, and dispute resolution terms.
Why are some builder quotes much cheaper than others?
Cheap quotes often exclude key items like council approvals, engineering, BASIX certificates, or proper material specifications. They may also use large provisional sum allowances that blow out during the build. Always compare scope, not just the bottom line number. Learn about our residential renovation services and how we work with homeowners.
Mark Dura is the founder of Dura Group Building & Renovations, a licensed builder (Lic 381531C) with 27+ years of experience in residential renovations, home extensions, and knockdown rebuilds across Sydney. Mark oversees every project from design through to completion.
