Aaah, the joys of renovation. In Australia, millions of keen renovators spend billions having builders revamp their homes. Sounds easy enough, but if you’ve never worked with tradespeople before, it can be a serious wake-up call.

Some are extremely professional; others swear like troopers. Some show up on time; some don’t. Others don’t show up at all.

Yes, the relationship between home-owner and builder can turn into all-out war, but a little preparation goes a long way. From where to find a builder and how to sort out the contract, to your rights and how to deal with things if they go wrong, here are some important tips that will hopefully make your search a lot easier.

1. Finding a good builder Word of mouth is a good way to find a builder or tradesperson – it’s usually a safer bet than getting someone you know nothing about. If family and friends can’t help with recommendations, the Master Builders Association should be able to.Try to find at least three builders who you could work with – that’s how many quotes you should get before you settle on just one. And it’s not always advisable to go for the cheapest builder. Look for someone who specialises in the job you want done and, if necessary, one who already has experience with your local council.
2. Write a brief Never leave builders to their own devices. Whether you’re extending the family room or adding an ensuite, you need to have a detailed brief (called a “specification”) explaining the type of work to be carried out and the materials you want to use. Keep in mind that if you don’t nominate specific items, the builder will usually base the quote on the cheapest products and materials. Also, an unspecified job is an opportunity to mark up materials and/or add variations to a contract – both of which would cost you more.Industry associations such as the Housing Industry Association offer you standard specification forms that can help you write your own brief. Alternatively, you can employ the help of architects or quantity surveyors to write specifications for you. Expect to pay from $1000 for this service.
3. Now to the contract Besides choosing a good, reliable builder, the next important task is to get your contract right. Building contracts are governed by state legislation, so they can differ depending on the state or territory you live in. In NSW, for example, all residential building work worth over $1000 requires a written contract. In Victoria it’s $5000, and in Queensland the value is $3300. Check with local authorities on current rates for these services.
   Generally, a contract can be in a standard form offered by organisations such as the Master Builders Association, the Housing Industry Association or the Office of Fair Trading (from whom you can expect to pay around $12 for a standard contract). A good contract should minimise stress and avoid confusion by dealing with all major issues likely to concern both the owner and builder, including the contract price, time for completion, allowable causes of delay and treatment of unforeseen conditions. Use your contract to include any other requirements, such as no smoking on-site, cleaning up each day and the number of hours to be worked daily or weekly.

   There are two types of contracts, fixed and cost-plus. Most renovators opt for fixed contracts because they give them peace of mind. Under a cost-plus contract, the builder is entitled to recover actual costs incurred, plus an extra amount for profit. Make sure you know how the contract price has been calculated, exactly what’s included and what’s not, as well as how it can be varied. Even fixed contracts have clauses that allow the builder to increase their price in certain circumstances.

4. Quotes, deposits, payments Your contract should clearly state the payment arrangement you’ve worked out with the builder – including specific amounts for the deposit, progress payments (made at agreed work stages or dates before completion of the work), and details of when these payments are to be made.In general, if the contract price is over $20,000, you cannot be asked to pay more than five per cent of the contract price as a deposit. If it is less than $20,000, the deposit must not exceed 10 per cent of the budget for contingencies (that is, unexpected problems or events that could cost you money, such as terrible weather, illness or problems with building supplies). Hopefully you won’t have to use it, but then again, how often do you hear of a renovator sticking to their budget? Depending on which state or territory you live in, you do, as the homeowner, have a right in certain circumstances to terminate the contract.

   For example, in Queensland, if the contract price rises by more than 15 per cent or the construction period blows out by more than 50 per cent, you may be entitled to terminate the contract.

5. When things go wrong Most professional builders will not risk their reputation by refusing to rectify faulty work. So if you find a problem with the work – either while it’s being done or some time after it’s been finished, or if the contract is broken – talk to your builder first. It’s important to keep the lines of communication open. If the problem is not resolved verbally, proceed to put it in writing. Keep a copy of the letter for your records and note the date you posted it.If you still can’t resolve the problem, then you should notify a state government authority such as the Office of Fair Trading. It will attempt to negotiate a suitable outcome between you and your contractor. If you can’t reach an agreement, other options that may be available include the Home Building Service, which is linked to the Office of Fair Trading. The next big step is a claim before the Consumer, Trader & Tenancy Tribunal (CTTT), where orders including payment of money and/or relief from paying money can be made.

For more great ideas and practical solutions for your home see ninemsn real living