Unreliable no-shows, dodgy workmanship, agreed materials being replaced with cheaper ones or a complete mess constantly left behind could see you climbing the walls before your six figure home renovations are even nearing completion. So how do you find a reliable builder who will make you feel nothing short of house proud?

Australian's spend $416 million annually on home renovations, with the average reno costing between $75,000 and $150,000 according to recent figures from Archicentre, the building advisory service of the Royal Australian Institute of Architects.

Choosing the right builder to complete these renovations can sometimes feel like a stab in the dark, one that has the potential to blow your budget and send the stress level under your roof soaring.

Talk to friends and family

Nothing is quite as reliable as a personal recommendation from someone you know who is now living inside a home that particular builder has renovated. Visit them and see the work first hand and ask lots of questions about every stage of the renovation.

Is the builder licenced?

The NSW Office of Fair Trading does not recommend dealing with a builder who is not licenced by them. In fact, any person carrying out building work worth over $1000 without an appropriate licence is breaking the law. Ask for the builder's contractor licence number so you can conduct your own online licence check at the www.fairtrading.nsw.gov.au website. Or you can call 13 32 20 and ask them to search the public register on your behalf.

Ask to see examples of the builder's work

Go and see some of the homes a builder has worked on. A professional and reputable builder who has nothing to hide will be more than happy to show you these. Ask the owners if the renovations were completed on time, whether the quote was accurate, was communication with the builder open, was this person the main supervisor of the job and would they recommend them? And how did the builder deal with any defective work and was it amended quickly.

Do you need a specialist?

A renovation to a grand turn-of-the-century home will need a builder with a different skill set to one that could quite competently update a small 1970s flat.

How busy are they?

For your own peace of mind, it's important to know that the builder isn't overloaded and your home is getting the attention it deserves.

Supervising the renovation

The builder you negotiate the contract with may not be the job's main supervisor. Make sure the supervisor holds a current Supervisor's Certificate issued by the Office of Fair Trading.

Insurance

The builder and you need to be insured in case something goes wrong. There are a wide variety of insurance types the builder needs to be covered by (refer to the Office of Fair Trading for a comprehensive list). It's also a good idea to contact the insurance company listed on the insurance certificate to ensure that it is valid.

The contract

Contracts should always be formally written and never just verbal agreements. It should outline a total amount, an agreed payment system (always make progressive payments so you are not left at the builder's mercy), plus a deposit amount, which by law is a maximum of 5 percent for renovations over $20,000. If you need the work to be completed by a set date, make sure it is realistic and specify that date in the contract. You should also understand how the total cost quoted could be affected by unforeseen circumstances like erratic weather. Also include an agreement about regular cleaning of the site so you and your family are not left staring at a mountain of bricks in the middle of your living room for the next six months.

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