Building or renovating? Here’s how to avoid defects and ensure a good building experience

1 month ago 21

Choosing the right builder isn’t just about price or flashy marketing. It’s about trust.

Planning a build or renovation? The truth is, the biggest risk isn’t in the colour scheme, floorplan or fittings, it’s in who you choose to work with.

Because when things go wrong in the building process, they can go really wrong, and fixing defects after handover can be stressful, expensive, and in some cases, near impossible.

Take the stress out of building with an iCIRT rating. Picture: realestate.com.au

With more than 85% of Australians concerned about construction quality and defects, it’s never been more important to know exactly who’s building your future home.

Australians are worried, and for good reason

A recent YouGov survey reveals the top concerns holding Australians back from building or renovating:

85% are concerned about building quality and defects

90% believe it’s important to have trust and confidence in construction professionals

73% of those with property intentions are concerned how low supply and high demand for construction will negatively impact build quality.

In fact, only 32% of Australians have confidence in the building and construction sector.

So how do you know if a builder or developer is genuinely trustworthy? It starts with transparency, and that’s where iCIRT comes in.

A rating system developed by Equifax in close consultation with regulators, funders, insurers and property owners, iCIRT is an independent tool that gives you an objective, trustworthy assessment of building professionals.

This rating system is designed to help Australians make informed decisions with confidence, eliminating much of the uncertainty and guesswork that traditionally comes with choosing a builder.

Among those who know about iCIRT, more than four in five (81%) say they have a positive view of the industry.

And it’s not just about good vibes.

Research is essential now, more than ever, when choosing a builder. Picture: realestate.com.au

Nearly 90% of buyers say independent due-diligence and ratings would influence who they work with, especially those planning a purchase within the next five years.

A real shift in behaviour

The Assistant Building Commissioner for NSW, Matt Press, says the changes brought about by iCIRT and the NSW government reforms are already reshaping the industry for the better.

“We’re seeing the incidence of waterproofing-related defects decline by around 20% over the last four years,” he says.

“At the same time, consumer confidence in buying off-the-plan has increased by about 20%.”

This shift, Matt says, is due in large part to a smarter, data-driven regulatory approach.

“As a regulator, we’ve leaned hard into data and risk assessment. iCIRT is the public-facing version of that approach, it empowers the industry to understand its own risk profile, and consumers to make informed choices.”

The result? Builders and developers are incentivised to earn and maintain their iCIRT rating and that translates to more trustworthy behaviour, more transparent practices, and fewer defects.

The real red flags (and what to look for instead)

The Chair of the iCIRT Committee, Brad Walters, says the real warning signs often aren’t visible to the average homeowner until it’s too late.

“The main red flags relate to the people behind the project.”

“Have they reliably delivered quality homes in the past? Do they work with trusted partners? Have they been involved in legal disputes or collapses? And do they have the resources and integrity to see the job through?,” adds Brad.

The last thing you want when moving in is some nasty surprises - an iCIRT rating can prevent this. Picture: Getty

These questions are at the heart of the iCIRT process.

The rating, assigned by a licensed and independent agency, assesses character, capability, conduct, capacity, counterparties and capital. In short: their trustworthiness.

And as Brad points out, not all builders are created equal.

“Size, marketing or reputation alone doesn’t mean they’re low-risk,” he says.

Power back in the hands of consumers

The iCIRT register is publicly accessible and free to use, making it a powerful tool for buyers and renovators. But it’s more than just a website. It’s shifting the balance of power back toward consumers.

“Rated firms are much more likely to honour their commitments,” Brad says.

“They know their rating impacts not just consumers, but also insurers, funders, and regulators. It changes the whole dynamic.”

Before you sign anything, ensure you've turned all stones in terms of research. Picture: Getty

He also suggests a smart contract clause that gives buyers even more protection.

“Work with your lawyer or conveyancer to include a term that says your builder must achieve an iCIRT rating that has attained trustworthy status within six months,” Brad says.

“If they don’t, you can walk away and recover your deposit. That’s a huge peace-of-mind clause.”