Renovation or building? - 9 Questions before hiring a builder

• Cheap quotes can hide compliance failures, uninsured risks and costly shortcuts.

• Registration with bodies like the Building Industry Bargaining Council (BIBC) and National Home Builders Registration Council (NHBRC) is non-negotiable.

• A written contract, proper insurance and clear scope protect your home and your wallet.

Build Smart: The stakes are high

Renovating a kitchen, adding a second storey or building from scratch can unlock serious value. Done right, it improves lifestyle and asset performance. Done badly, it becomes a legal and financial nightmare.

In a market where demand for renovations is rising and skilled contractors are stretched, homeowners often rush the appointment process. That’s where trouble starts.

Drawing on decades of industry oversight, the Building Industry Bargaining Council (BIBC) has seen the fallout when due diligence is ignored.

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“Even if a builder is available and eager to start, it’s worth pressing pause to check their qualifications, compliance, and insurance,” says Danie Hattingh, spokesperson for business at the BIBC. “A giver of work often doesn’t realise they play a role in upholding industry standards.”

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He’s right. As a homeowner, you’re not just hiring labour. You’re taking on risk.

Practical guidance to avoid costly pitfalls

Here’s what you need to check before signing anything.

1. Check credentials, properly

Ask for proof of registration and compliance. At minimum, a contractor should be:

• Registered with the Building Industry Bargaining Council  (BIBC) - where applicable

• Registered with the National Home Builders Registration Council (NHBRC) - for new residential builds

• Compliant with tax, labour and occupational health and safety laws

The BIBC includes employer bodies such as the Master Builders Association Western Cape (MBA WC), MBA Boland and the Consolidated Employers Organisation (CEO), alongside unions like BWAWUSA, BWU and NUM. This collective structure helps maintain labour standards and fair practice across the sector.

If a builder isn’t compliant, it’s not just paperwork that’s missing. It may mean corners are being cut elsewhere too.

2. Assess relevant experience

Building a new home is not the same as doing a heritage renovation or commercial fit-out.

Ask to see:

• Recent projects similar to yours

• References you can call

• Before-and-after photos

If possible, visit a completed project. Quality leaves a trail.

3. Insist on a written contract
Handshake deals belong in another era.  

Your agreement must clearly set out:

• Scope of work

• Timelines and milestones

• Payment schedules

• Variation procedures

• Dispute resolution

• Warranties and guarantees

If it’s not in writing, it doesn’t exist.

4. Verify insurance, no exceptions
This is where many homeowners get exposed.  

Request proof of:

• Public liability insurance

• Employer’s liability (COIDA or FEM)

• Professional indemnity cover (where applicable)

Without adequate insurance, you could be financially liable for injuries, property damage or defects.

5. Understand site conduct and legal compliance

The BIBC Collective Agreement regulates working hours, overtime and shutdown periods. Builders must apply for exemptions if working outside regulated hours.

You should also confirm:

• Compliance with local bylaws (noise, traffic, safety)

• Health and safety plans

• Site security measures

If you’re living on-site during renovations, this becomes even more critical.

6. Know who is actually doing the work
Subcontractors are common such as electricians, plumbers, roofers.

Ask:

• Who are they?

• Are they registered and insured?

• Have they worked with this contractor before?

You want a coordinated team, not a loose collection of freelancers.

7. Be wary of unrealistically low quotes
Price matters, but so does sustainability.

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“If someone is competing on price alone, it is a good idea to dig deeper,” says Hattingh. “Low quotes can hide shortcuts that cost more in the long run.”

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An abnormally low bid often means:

• Inferior materials

• Underpaid or unregistered labour

• Missing insurance

• Excluded scope items

Cheap can become very expensive.

8. Ask tough, specific questions
Professional contractors welcome scrutiny.

Ask:

• Is the quote fully itemised?

• Are materials and workmanship guaranteed?

• Do Construction Regulations under the OHS Act apply here?

• Who registers the project with the NHBRC?

• What happens if timelines slip?

Clarity upfront prevents conflict later.

9. Understand your role as the “Giver of Work”
This is often overlooked.

By appointing a compliant builder, you:

• Protect workers’ rights and benefits

• Support ethical industry practices

• Reduce your own exposure to legal and financial claims

You’re not just a client. You’re a stakeholder in how the industry operates.

Why this matters beyond one project

The BIBC is not there to police individual renovations. Its role is broader: maintaining stable labour relations, negotiated wage standards and fair employment practices across the Western Cape’s building sector.

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“We are not here to monitor your project,” says Hattingh. “Our goal is to share insights that help everyone, from homeowners to contractors, build responsibly and protect what matters most.”

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In a country battling housing backlogs, infrastructure pressure and rising construction costs, responsible building is not optional. It’s foundational to economic growth and asset protection.

Bottom line on hiring correctly

‍Hiring a builder should never be rushed.

Pause. Verify. Document. Insure. The right contractor delivers more than a finished structure, they deliver compliance, accountability and long-term value.

Get it right, and your renovation enhances both lifestyle and investment return.

Get it wrong, and you may spend years fixing mistakes that could have been avoided with nine simple questions.

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