How to choose a custom home builder on the South Coast

Choosing who builds your home is the most consequential decision in the whole project. The right builder makes the process clear, the budget predictable and the finished home something you are genuinely proud of. The wrong one creates delays, cost blowouts and a home you have to fight to get right. Here is a plain guide to what to verify, what to ask and what to be wary of.

Check the licence and insurance

In NSW, anyone doing residential building work worth more than $5,000 must hold a contractor licence from NSW Fair Trading. Before you sign anything, look up the builder's licence on the free public register at verify.licence.nsw.gov.au. The result shows the licence holder's name, number, class, expiry date and any conditions or suspensions. What you want to see: a residential building contractor licence, a current expiry date, and a clean record with no conditions or suspensions.

For work worth more than $20,000, the builder must also hold Home Building Compensation Fund (HBCF) insurance before they start work or accept any deposit. This insurance protects you if the builder becomes insolvent, disappears or dies before completing the home. Ask for the HBCF certificate in writing before any money changes hands. Under the Home Building Act 1989 (NSW), the maximum deposit a builder can take is 10 per cent of the contract price. If a builder asks for more than that, walk away.

Ask to see recent local work

The South Coast has specific conditions that not every builder is set up for: BAL bushfire ratings, coastal salt exposure, on-site water and wastewater systems, and sloping or flood-affected blocks. Ask for projects the builder has completed in the region and ask to speak with those clients directly. Looking at finished homes in person tells you more about quality and finish standards than any brochure. A builder who is local and can show you real completed work nearby is a much safer choice than one travelling up from Sydney or across from another region.

Understand the design process

A builder who designs and prices from a complete, resolved set of drawings can give you a genuinely accurate fixed price. A builder who prices from a concept sketch will load the contract with provisional sums and prime cost items that catch up with you in variations later. Before you compare quotes, ask what level of design documentation each price is based on. Two quotes with the same number on the cover can be very different things inside the contract.

Understand how they price

Ask whether the price is fixed or cost-plus, and what it covers. A fixed price means the builder carries the risk if costs run over; cost-plus shifts that risk to you. For a properly documented brief, fixed price is the right call for most clients. On cost-plus jobs, final costs running 20 to 40 per cent above the initial estimate are common, because nothing in the contract holds the builder to that figure. Our guide on fixed-price vs cost-plus building contracts in NSW covers the difference in detail and explains what NSW law requires either way.

Watch how they communicate

A custom home takes a year or more to build, and you will be in regular contact with your builder throughout. The first few conversations tell you a lot. Do they answer questions plainly? Do they give honest cost guidance or deflect when you ask for a number? Do they explain the process step by step, or do they try to move you toward signing before you feel ready? A builder who is evasive or hard to pin down before signing will not improve once you have committed.

Questions to ask before you decide

These are worth asking every builder you consider. Is your licence current, and can I verify it by number? Do you hold HBCF insurance for this project, and will you provide the certificate before I pay a deposit? Can I speak with clients from recent projects similar to mine in scale and location? Is the price fixed or cost-plus, and exactly what does it include? Which items are provisional sums or prime cost allowances, and how were those figures set? Who is my main contact during the build, and how often will I receive progress updates? How are variations priced and approved? And do you handle design and approvals in-house, or will I need to engage a designer or planner separately?

What to watch out for

A builder who cannot provide a licence number, asks for a deposit above 10 per cent, or cannot point you to recently completed local homes is a risk. Be cautious of an unusually low price too. A quote that looks cheap at signing often reaches the same figure as a proper price through variations once the build is underway. The cheapest quote is rarely the cheapest build.

How we work

Perrem is a licensed and insured design-and-build firm based on the NSW South Coast, Licence No. 277680C. Because we carry the project from design through to handover, we price from complete drawings and offer a proper fixed-price contract, not a figure padded with provisional sums. Read about how the design-and-build process works, the homes we have built in Batemans Bay and across the Eurobodalla, and what a custom home costs on the South Coast in 2026. If you are ready to talk about a project, the new custom home builds page and planning and approvals are the right places to start.