Choosing an ACT Builder: Why You Should Get Three Quotes

Get at least three quotes from different builders before choosing: the ACT Government’s City and Environment Directorate – Planning recommends this to help you assess value, but warns that the cheapest quote is not always the best value (figures checked 1 October 2026). The same guidance says the ACT has no limit on an initial deposit, although industry practice is usually up to 10% of the total contract price, and the maximum amount claimable under project insurance is currently $10,000 if the work is not completed. Compare the full scope, quality, programme, payment terms and contract protections, then check the builder’s recent work, references, company history and disciplinary record.

Why are three quotes worth getting?

At least three quotes give you a practical basis for comparing value. Each builder may interpret quality, inclusions, timing and risk differently, so a lower total does not automatically mean a better offer. The ACT guidance also notes that higher quality generally comes at a higher cost.

Give every builder the same written brief, plans and specifications, then compare:

Specify inclusions clearly, even smaller items such as tapware, cornices, paint or a particular colour. An unclear description may leave room for product substitutions or changes to room dimensions.

How do I check recent work and references?

The ACT Government advises asking potential builders for details of similar past work and recent clients. This helps test whether the builder can provide the level of service you expect for your project.

When reviewing that information:

• Check that the work is relevant to the type, scale and complexity of your project, rather than merely recent.
• Ask about the quality of the finished work and how well the builder followed the agreed scope.
• Discuss communication, variations, delays, defects and handover.
• Speak with recent clients where they agree to provide feedback.
• Keep notes so you can compare responses from different builders and customers.

Recent work and references help answer whether the builder’s apparent capability matches your expectations. They do not replace checking the contract, licence, insurance documents or company information.

How do I check the builder’s company and disciplinary records?

The ACT guidance says due diligence may include company searches and checking the disciplinary register for compliance action against the builder or its directors.

Use those checks alongside the following:

• Confirm the exact legal name of the builder or building company.
• Compare the builder’s company details with the name and director information shown on the contract, licence and insurance documents.
• Check whether compliance action appears against the builder or its directors and consider the details in context.
• For work requiring a licensed builder, confirm that the builder holds the correct licence class.
• Use a licensed and insured builder wherever required.

Recent clients, company searches and disciplinary records answer different questions. Use all available evidence rather than relying on one favourable reference or a low quote.

What budget and payment points need checking?

Building and renovating can be expensive, so the ACT guidance recommends setting a budget and sticking to it. It also recommends allowing extra funds for unforeseen circumstances that cause additional costs.

A deposit is the initial payment to start work, while progress payments are made as construction progresses. Check that the contract clearly states the stages and amounts. If you want to create a different payment schedule, the guidance recommends seeking legal advice.

There being no legal limit on an initial deposit does not mean it is affordable or appropriate for your project. Compare the deposit against your available funds, the work starting and the limited recovery described by the ACT guidance.

Does the contract identify the builder’s insurance policies?

Yes. The ACT guidance says a residential building contract should state the builder’s licence details and any insurance policies held by the builder.

For additional project protection:

• For work over $12,000 on some residential buildings, the builder must have residential building work insurance or a fidelity fund certificate for the project before work commences.
• Obtain a copy of the residential building work insurance policy or fidelity fund certificate.
• Check that the contract allows fair termination if the builder cannot obtain the required insurance within the prescribed time.
• Homeowners warranty insurance covers only up to $10,000 for deposits and is not residential building work insurance under the Building Act 2004.
• Separate insurance may be purchased voluntarily.

Do not assume the ACT project requirements establish what a particular public liability policy covers. If you hold or are considering a policy, check your policy’s PDS for its cover, exclusions and obligations rather than treating it as a substitute for the project documents identified above.

What else should the building contract contain?

Use a written contract for a new home or renovation. Although ACT legislation does not require one for residential building work, the ACT Government strongly recommends it because the contract is binding and records the rights and responsibilities of both parties.

Variations can affect the final cost and should always be obtained in writing; most contracts also require both parties to sign them. Check how the builder’s margin is applied to variations or termination, as it is essentially the builder’s fee in those circumstances.

If a building approval is required, an independent building certifier must consider the application and inspect the work at certain stages. As the landowner, it is your responsibility to appoint the certifier. The residential building contract must not give the builder the right to appoint the certifier or act as your agent when dealing with it. Any arrangement allowing the builder or another person to appoint the certifier must be in a separate written agreement.

There is no mandatory cooling-off period for ACT building contracts. Be ready before signing, because changing your mind may attract a contractual penalty.

What statutory warranties might apply?

Under the ACT Government guidance, residential building work valued over $12,000 carries statutory warranties even if the contract does not state them. Different warranty periods apply to structural and non-structural elements.

Statutory warranties apply to the residence but not to items such as paving, fences, retaining walls, outdoor swimming pools, ponds and antennas. The contract may provide additional warranties and defect-resolution processes without limiting the statutory warranties.

What should I do before signing?

Before committing, confirm that:

• The quotes cover the same scope and can be compared consistently.
• You have checked recent comparable work and spoken with suitable recent clients.
• The company structure, directors, licence and disciplinary information have been reviewed.
• The budget includes room for higher-quality selections and unforeseen costs.
• The contract identifies the builder, licence, insurance policies, plans, inclusions, price and payment schedule.
• The contract explains variations, approvals, completion, defects, termination and disputes.
• You have obtained the relevant project insurance policy or fidelity fund certificate.
• You understand the clauses, obligations, rights and any special conditions.

Obtain independent legal advice if you are unsure about terms or want to add or change something. The guidance also recommends independent legal and financial advice on any building contract being considered.

Ensure you receive a signed copy promptly, obtain regular builder updates and record progress. Raise concerns as soon as possible, keep copies of complaints and the builder’s responses, and ask for the builder’s written complaints policy if one exists.

General information: This article provides general information, not financial or legal advice. Check the current ACT Government regulator page before relying on its thresholds or contract guidance, and read your policy’s PDS for any insurance policy you hold or are considering.

Sources

• Hiring a builder – City and Environment Directorate – Planning

FAQ

Do I have to get three quotes?

The cited ACT Government guidance recommends obtaining at least three quotes from different builders, but it does not state that three quotes are a legal requirement.

Is a written building contract compulsory in the ACT?

ACT legislation does not require a written contract for residential building work, but the ACT Government strongly recommends one. It is binding, and there is no mandatory cooling-off period, so be ready before signing.

Should the contract list the builder’s insurance policies?

Yes. The contract should identify the builder’s licence details and any insurance policies the builder holds. For work over $12,000 on some residential buildings, the project insurance or fidelity fund certificate requirement must also be checked.

How much should I pay as an initial deposit?

The ACT has no limit on an initial deposit, although industry practice is usually up to 10% of the total contract price. The maximum claimable under project insurance is currently $10,000 if the work is not completed, so the deposit should be considered within your wider budget and payment schedule.

When should I obtain independent advice?

Seek legal advice if you are uncertain about a clause, want to change the contract or are unsure of your rights and obligations. The ACT guidance recommends independent legal and financial advice on building contracts being considered.