Telltale Signs You’re Dealing with a Dodgy Builder (and How to Avoid Them)

ChatGPT said: Construction worker examining blueprints at a residential renovation site.

Renovating your home is supposed to be the kind of experience you brag about over a BBQ. But for some, it’s less like a backyard success story and more like the first season of a reality show titled Dodgy Builders Down Under.

According to the Victorian Building Authority (VBA), a whopping one in 10 complaints received last year were thanks to unregistered tradies preying on unsuspecting Victorians.

You know the type: promises the world, delivers rubble, and disappears faster than your patience.

That’s why, to help you dodge this absolute circus, I’ve rounded up the biggest warning signs that scream, “Find someone else!” before you sign on the dotted line.

Key Takeaways

Renovating your home should be a dream come true, not a nightmare. Here are the biggest red flags to watch out for:

  • Elusive References and Ghost Projects
    If their past work is impossible to verify or always “unavailable for viewing,” it’s a sign that something isn’t right.
  • Quotes That Defy Logic
    If their quote is dramatically lower than others, it’s not a bargain, it’s bait. Protect yourself with a detailed pre-renovation inspection to avoid nasty surprises.
  • Cash-Only Payments
    Insisting on cash isn’t just old-school; it’s often a way to dodge responsibility.
  • Questionable Health and Safety Practices
    If your builder shows up in thongs and a singlet, it’s not a vibe – it’s a liability.
  • Skipping Compliance and Safety Checks
    Ignoring regulations to save a few bucks now can lead to massive fines and repairs later.

Dodgy builders know how to hide their tracks, but these warning signs are hard to miss if you know where to look.

Let’s break each one down so you know exactly what to watch for and how to protect yourself before it’s too late.

Their ‘References’ are as Elusive as Bigfoot

You’d think that after years of supposed experience, a builder would be practically bursting with happy clients willing to sing their praises. But when you ask to see their past work, things suddenly get a bit…mysterious.

First, there’s the awkward silence, followed by a vague story about “confidentiality agreements” or how their last project was for “a private client who doesn’t want strangers poking around.”

Right. Because a freshly tiled bathroom is basically classified information.

The “Ghost Project” Tour

One classic dodgy builder move is the “Ghost Project.” This is where they’ll list off a few projects they’ve supposedly completed but are always unavailable for viewing.

“Oh, the Johnsons’ deck? It’s all done, but they’re on holiday right now. The Smith extension? Yeah, they just moved, but I’m sure I can get you in next month.”

If every project you ask about is suddenly off-limits, it’s not because they’re living on private islands. More likely, those jobs either don’t exist, or they do, but you wouldn’t want to see them up close.

How to Separate Fact from Fiction

If you want to get serious about vetting your builder, here’s what you should do:

  1. Insist on Site Visits: Ask to see a current worksite. Not a finished project, but something they’re actively working on. If it’s a genuine builder, they should have no problem letting you take a look (with permission, of course).
  2. Talk to the Homeowners: Don’t just look at the work, speak to the people living with it. Ask them about timelines, communication, and whether the builder showed up when they said they would.
    If the homeowner hesitates or looks a bit nervous, that’s a clue.
    And if you can’t find any clients in the flesh, head over to sites like BuildAdvisor to see if anyone has left a review for your would-be tradie.
  3. Check for Consistency: If they show you photos, make sure the style is consistent. If one bathroom looks like it belongs in a luxury hotel and another looks like a high school art project, you might be looking at work from different builders entirely.
  4. Verify the Reference: If you’re given a name and number, call it. Ask specific questions: What was the scope of the project? How long did it take? Were there any delays?

A real client will be more than willing to share the good, the bad, and the ugly, and might have completed their own property inspection report to see if the work is up to snuff.

Their Quote Makes You Question Reality

You’ve done your due diligence. You’ve called around, gotten a few quotes, and braced yourself for the cost of your dream renovation.

Two of the builders come back with estimates that are in the same ballpark – let’s say around $50,000 for that new kitchen and deck. Then you get the third quote. It’s $15,000.

At first, you’re thrilled. Fifteen grand?! Maybe this guy has his own lumber mill, or maybe he’s just the most efficient tradesperson in the world.

But deep down, you know what your grandmother always said: if it sounds too good to be true, it probably is.

The Classic Lowball Trap

This isn’t just about undercutting the competition; it’s a well-worn tactic designed to get you on the hook. Dodgy builders throw out these ultra-low quotes because they know price is often the biggest deciding factor.

But here’s the trick: that initial quote is just the beginning.

As the job progresses, suddenly there are “unforeseen issues.” You need stronger beams. The electrical wiring isn’t up to code. There’s “unexpected water damage.”

Each surprise comes with a hefty price tag, and before you know it, you’re right back up to $50,000 (or worse, way beyond it).

What Are They Skimping On?

If their quote is significantly lower than others, it’s not because they’re feeling charitable. It’s because they’re cutting costs somewhere:

  1. Materials: Instead of high-quality timber, you might get bargain-bin plywood that warps after the first rain. Those sleek stainless steel fittings you wanted? Plastic imitations. You may not notice at first, but give it a few months, and it’ll be painfully obvious.
  2. Labour: Experienced tradespeople charge for their expertise. If your builder is quoting rock-bottom prices, they’re likely hiring unqualified labour or using day workers with questionable skills.
    This is how you end up with crooked tiles, uneven floors, and the mysterious phenomenon of doors that won’t close.
  3. Corners Cut on Compliance: Permits, safety checks, and proper foundations aren’t cheap. Some dodgy builders will skip or fudge the paperwork entirely. It’s only when you try to sell your house (or worse, something goes wrong) that you realise you’re sitting on a liability.

Spotting the Lowball Scam

If you don’t want to get trapped in a budget-blowing nightmare, here’s what you should do:

  • Get Multiple Quotes: This is non-negotiable. Get at least three detailed, itemised quotes from different builders. If one of them is suspiciously low, you’ve got your red flag.
  • Ask for a Breakdown: A proper builder will be happy to provide an itemised list of costs – materials, labour, permits, everything. If they’re cagey about where the money’s going, it’s because they don’t want you to know.
  • Research Average Costs: It’s worth doing a bit of research to understand the typical price for renovations in your area. If a builder is quoting well below market rate, they’re either cutting corners or setting you up for extra charges.
  • Check for Inclusions and Exclusions: Make sure you know exactly what’s included in the price. Are permits included? What about waste disposal? Site clean-up?

If these aren’t in writing, you can bet they’ll be “additional costs” later.

Think the price of your front deck was a little too good to be true? Book a home inspection to see if your reno refresh is up to code.

They Want Cash… and Only Cash

When you’re hiring a builder, payment methods should be straightforward: bank transfer, credit card, maybe a cheque if you’re feeling nostalgic.

But if your builder insists on cash (and only cash), it’s time to start asking questions.

The line usually goes something like this: “Look, mate, if you pay in cash, I can knock a bit off the price. No need to go through all that paperwork.”

Now, to the untrained ear, this might sound like you’re getting a good deal. Who doesn’t want to save a bit of money?

But here’s the catch: paying in cash not only makes it nearly impossible to track the payment, but it also leaves you with zero protection if things go sideways.

Why Dodgy Builders Love Cash

There’s a reason a shady builder prefers a stack of $50 notes over an electronic transfer:

  • No Paper Trail: When there’s no electronic record of the payment, it’s much easier for them to deny you ever paid in the first place. If you’ve got no receipt and no bank statement to back it up, good luck arguing that in court.
  • Tax Evasion: Builders who operate mostly in cash often do so to avoid the taxman. If they’re willing to dodge their legal obligations with the government, what makes you think they’ll be honest with you?
  • Easier to Disappear: If they’re paid in cash, they can vanish without a trace. Try tracking down someone who’s only ever given you a mobile number and a Gmail address when there’s no electronic payment trail to follow.

A legitimate builder won’t blink when you suggest paying via bank transfer or credit card. In fact, they’ll prefer it. 

How to Protect Yourself:

If you want to make sure you’re not handing your hard-earned money to a builder who’s more Houdini than handyman, follow these simple rules:

  1. Always Pay by Traceable Methods: Bank transfer, credit card, or even a cheque. Anything that creates a record.
  2. Demand a Receipt: If you absolutely must pay in cash, make sure you get a signed and dated receipt with the builder’s business details on it.
  3. Insist on a Written Contract: The days of handshake agreements are long gone. A written contract protects both of you.
  4. Ask for Proof of Business Registration: If they’re legit, they’ll have an ABN (Australian Business Number) and won’t mind you checking it.

If you’re about to hand over cash for renovation work, make sure you’re getting what you paid for. A building inspection ensures everything is done to code, with proper materials, and up to the quality you’ve been promised.

Health and Safety? Never Heard of It

If you’ve hired a builder who shows up in shorts, thongs, and a slightly dented hard hat that looks like it’s been through three renovations and a car crash, you might want to start asking questions.

Because here’s the thing: health and safety on a construction site is not optional, it’s critical.

It’s not just about a builder looking professional; it’s about keeping you, your property, and everyone working on-site safe. If your builder is cutting corners on safety, you can bet they’re cutting corners everywhere else too.

Spotting the Safety Slip-Ups

Here are the classic signs that your builder is playing it fast and loose with health and safety:

  • No Protective Gear: Proper builders wear hard hats, steel-capped boots, gloves, and sometimes even high-vis vests. If your builder is wandering around in sneakers and a singlet, that’s not confidence, that’s recklessness.
  • Skipping Scaffolding: If they’re balancing on ladders three stories up or scaling your roof like Spider-Man, you’ve got a problem. Proper scaffolding isn’t just for show, it’s there to prevent falls that can be life-threatening.
  • Unsecured Worksites: You know those piles of bricks just casually sitting at the edge of your driveway? Or that stack of wood teetering on the edge of a sawhorse? That’s not just messy; it’s dangerous. Worksites should be tidy and materials properly stored to avoid accidents.
  • No Safety Barriers: If there are open trenches or exposed beams with nothing but a bit of caution tape tied around them, that’s a sign of lazy site management.
  • Electrical Hazards Everywhere: Loose wires, open sockets, and power tools left plugged in overnight are more than just messy; they’re dangerous. A good builder makes sure these things are covered, capped, and properly managed.
  • Rubbish and Debris Everywhere: If the worksite looks like a tornado hit it, that’s not just bad housekeeping, it’s a safety hazard. Uncollected debris and stray nails are accidents waiting to happen.

The Hidden Costs of Poor Safety

You might be thinking, “So what if the site’s a bit messy? As long as the job gets done, right?”

But here’s the harsh reality: poor safety doesn’t just mean a messy worksite – it could mean major costs down the line:

  • Property Damage: If unsecured materials fall or tools are left lying around, it’s not just the builder’s problem – it’s yours. Damaged pathways, broken windows, or worse, structural damage, can easily happen when safety isn’t a priority.
  • Insurance Nightmares: If an accident happens on your property and your builder isn’t properly insured or compliant with safety regulations, you could be held liable. Imagine paying medical bills for a subcontractor who twisted his ankle on a pile of unsecured timber.
  • Council Fines: Did you know that if your builder isn’t following local safety guidelines, you could be hit with a fine? Council inspectors don’t just visit large construction sites, they also check up on residential projects.

How to Protect Yourself:

If you want to make sure your builder isn’t playing fast and loose with safety, here’s what you need to do:

  1. Ask About Their Safety Protocols: A professional builder won’t hesitate to walk you through how they keep their site safe and tidy. If they shrug it off or say it’s “no big deal,” that’s your sign to look elsewhere.
  2. Request to See Their Safety Certifications: Builders working with high-risk tools and equipment need proper training. Ask to see their tickets for operating machinery, electrical work, and scaffolding.
  3. Check Their Insurance: Don’t just take their word for it – ask to see proof. A real builder will have it ready to show, not buried in a filing cabinet on the other side of town.
  4. Pop In Unannounced: One of the best ways to check if your builder is upholding safety standards is to visit the site unexpectedly. If you find a chaotic mess or workers without protective gear, you know you’ve got an issue.
  5. Report Serious Breaches: If you see something that’s clearly unsafe (like electrical wires near water or workers on roofs without harnesses), don’t be afraid to report it. It’s better to be cautious than to regret it later.

Dodgy builders are out there, lurking behind promising quotes and cheery handshakes. But if you know the signs, you can spot them before your dream reno turns into a literal money pit.

Ready to Avoid the Dodgy Builder Nightmare?

Get peace of mind with a professional inspection from NextGen Inspections. Our experts spot the red flags before they cost you thousands.

Book your inspection today!