Choosing a builder is part trust and part due diligence. Queensland has strong consumer protections for residential building work, and knowing how they work puts you in a much better position to compare builders, read a contract and protect your investment.
Step 1: Check the licence
Anyone carrying out residential building work valued over $3,300 (including labour, materials and GST) in Queensland must hold an appropriate licence issued by the Queensland Building and Construction Commission (QBCC). Use the free QBCC licence search to confirm:
- The licence is current and covers the type of work (for example, a builder licence of the right class)
- The licence's financial category, which indicates the size of projects the company can take on
- Any disciplinary history or directions to rectify
Step 2: Look beyond the price
The cheapest quote isn't always the lowest final cost. When comparing builders, consider:
- Relevant experience with homes of similar scale, complexity and site type
- Recent references, and if possible a visit to a completed home
- How detailed the quote is. Clear trade breakdowns, inclusions and exclusions signal a careful builder.
- How realistic the allowances are. Low PC items and provisional sums make a quote look cheaper.
- Communication and reporting. How will you be kept informed? Who is your day-to-day contact?
- Program. A realistic construction timeframe, not just an optimistic one.
Step 3: Understand your contract
Regulated contracts
In Queensland, domestic building work valued at more than $20,000 falls under a "level 2" regulated contract. It must be in writing and include certain information. Your builder must also give you the QBCC's Consumer Building Guide before you sign. You then have a cooling-off period of five business days after receiving a signed copy of the contract.
Contract types
- Fixed price (lump sum): a set price for a defined scope, with adjustments only for variations, PC items and provisional sums. This gives the most certainty when documentation is complete.
- Cost plus: you pay actual costs plus an agreed margin or fee. This gives flexibility when the scope is uncertain, but less price certainty. Ask for strong reporting and a target budget.
Industry-standard contracts from bodies such as the HIA and Master Builders Queensland are widely used and drafted to meet Queensland requirements.
Step 4: Deposits and progress payments
Queensland law limits how much a builder can ask for upfront. For work valued at more than $20,000, the maximum deposit is 5% of the contract price. (Higher limits apply only in limited cases, for example where substantial off-site or prefabricated work makes up more than half the contract price.)
Progress payments must reflect the work actually completed. A common structure links payments to stages: base, frame, enclosed, fixing and practical completion. Before paying a claim, check that the stage really is complete. Don't pay ahead of work done.
Step 5: Home warranty insurance
For residential construction work valued over $3,300, the builder must arrange cover under the Queensland Home Warranty Scheme, administered by the QBCC. The premium is included in the contract price and must be paid by the builder shortly after the contract is signed. You should receive confirmation of cover from the QBCC. If you don't, contact the QBCC.
The scheme can provide protection, within limits and time frames, for:
- Non-completion: if the contract is properly ended and the builder doesn't finish the work
- Defects: structural defects, which must be noticed within 6 years and 6 months of the cover commencing, and non-structural defects, which must be noticed within 6 months of completion
- Subsidence or settlement affecting the work
Claim time limits are strict, so report issues to the builder and the QBCC promptly and in writing.
Step 6: Variations
Changes during construction are normal. Under a regulated contract, variations must be agreed in writing, with the price and any change to the completion date stated, before the work is done (except in limited circumstances). Keep a running register of variations and their cost.
Red flags to watch for
- A request for a deposit above the legal limit, or for cash payments
- Pressure to sign quickly or to skip the cooling-off period
- A licence that doesn't match the company name on the contract
- Vague quotes with large or many provisional sums
- No notice of home warranty cover after the contract is signed
- Verbal agreements about scope or changes
Key takeaways
- Check the QBCC licence search before you engage anyone.
- Compare scope, allowances and experience, not just the headline price.
- Know the deposit limit and pay only for work completed.
- Confirm your home warranty cover and get every variation in writing.
This guide is general information for homeowners in Queensland and is not legal, financial or technical advice for your specific situation. Regulations, thresholds and council requirements change. Please confirm current requirements with the relevant authority (such as the QBCC or your local council) and your project team.