All Topics / Value Adding / Assessing the financial health of a builder

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  • Profile photo of alfrescodiningalfrescodining
    Participant
    @alfrescodining
    Join Date: 2012
    Post Count: 160
    November 24, 2012 - 4:40 am

    Is it possible to do this?

    I want to avoid picking a builder who goes into administration (i.e. Procorp) as obviously that gets messy.

    How can I find out whether the builder I will go with is in a good financial position?

    Would they even answer those types of questions? If so, would they answer honestly?

    Thanks

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    November 24, 2012 - 7:01 am

    If it is a commercial project worth over $10 m then its probable if it is your house extension then you might ask for a statement of assets & liability.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 24, 2012 - 7:14 am

    You have no real way of knowing. Ask for personal guarantees – litle help maybe.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 24, 2012 - 8:28 am

    Hate to say no builder is going to tell you in advance there is a chance of him / her going into administration half way thru your job so you are stumped there.

    You are never going to know going forward but you can search the relevant Builder Services Authority in your particular State to see how many if any previous complaints the Builder has had.

    Ask him if his house is in his or his wife's name and see what he says ………

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148
    November 30, 2012 - 1:58 am

    In Victoria you can go to the Building Commission website and see who has been prosecuted or fined. It will also tell you why. All states would have this for you to access.

    Any smart builder would have the family home in the wife's name. I would be concerned if they didn't.

    One thing you can do is determine which trades they use and which suppliers. If there are any issues (late/no payments) these are the guys that may tell you.

    Good luck.

    Profile photo of alfrescodiningalfrescodining
    Participant
    @alfrescodining
    Join Date: 2012
    Post Count: 160
    December 1, 2012 - 12:20 am

    I'm in NSW, and I can't seem to find a place where a list of complaints against builders are stored and made available.

    I've tried the Dept of Fair Trading website but they don't have this kind of facility, unless I'm mistaken?

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    December 1, 2012 - 1:04 am

    Home Building Licence Check

    This is the link to the NSW OFT Licence Checking Website – for builders, real estate agents, conveyancers

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