TL;DR: This post gives homeowners a practical framework for evaluating renovation companies in Perth before signing anything. It covers the licensing and insurance checks that matter, how to read a portfolio properly, what a complete renovation quote should contain, and which contract terms are most commonly overlooked. Use it as a checklist during your due diligence, not after.
You have spoken to a few renovation builders, collected some quotes, and looked at some project photos. Now you are trying to work out which company is actually worth trusting with your home and your budget.
That is not an easy call. Most renovation contractors present well in conversation. The differences that matter, licensing, quote structure, project management, and contract terms, are rarely discussed upfront. They become apparent later, which is exactly where the problems start.
This post works through each of those areas in order. It is not a buyer’s guide to inspiration. It is a due-diligence framework for homeowners who are close to committing to major home renovations and want to know what to look for before they do.
Licensing and Insurance: Verify Before You Proceed
No quote is worth evaluating from a builder who cannot confirm the basics. Check these before you spend time on anything else.
Registered builder licence. In Western Australia, residential builders must hold a licence issued through Building and Energy, a division of the Department of Mines, Industry Regulation and Safety (DMIRS). You can verify any builder’s licence on the public register at the DMIRS website. Ask for the builder’s licence number and check it yourself. Do not accept a photocopy of a certificate as a substitute.
Home indemnity insurance. For any residential building work in WA valued over $20,000, the builder is required to hold home indemnity insurance before taking a deposit. This policy protects homeowners if the builder dies, disappears, or becomes insolvent before completing the work. Ask to see evidence of the policy, not a verbal confirmation. This is a standard request and any reputable renovation builder will provide it without hesitation.
Public liability insurance. This covers damage to your property or injury to a third party during the build. Confirm the level of cover and ask for a certificate of currency. If something goes wrong on site and the builder is uninsured, the liability question becomes yours to deal with.
Licensing and insurance are the starting point. If a builder resists confirming any of the above, that tells you something worth knowing early.
How to Read a Renovation Company’s Portfolio
Most portfolios look good. That is the point of them. The question is whether they tell you anything useful about the company’s current capability and whether that capability matches what your project requires.
Look for scope and property type, not just finish. A portfolio full of new kitchens tells you little about how a builder handles a character home renovation, a second storey addition, or a full home renovation involving structural work. If your project involves home extensions Perth, ground floor extensions, or multi-generational home extensions, ask specifically whether the portfolio includes completed work of that type and scale.
Photos versus site visits. Rendered photography is standard. What matters is whether the builder can take you to a completed project, or connect you with a past client, so you can see the work in person. A willingness to do this is a reasonable indicator of confidence in the finished result.
References, not just testimonials. Testimonials on a company’s own website are self-selected. Ask for contact details of two or three past clients from projects comparable to yours and follow up directly. Ask them about the renovation timeline, how variations were handled, and whether the finished scope matched what was quoted.
Age of the work shown. A portfolio heavy with projects from five or more years ago may reflect a different team, different subcontractors, or different management than what you would get today. Recent work is a more reliable indicator of current performance.
What a Renovation Quote Should Contain
A complete, trustworthy quote is not just a number. It is a document you can use to hold a builder accountable throughout the project. If a quote does not give you that, it is not a quote worth signing against.
Itemised line items, not a lump sum. Itemised quotes allow you to see where money is allocated, compare like for like across different renovation contractors, and identify where variations are most likely to arise. A single lump sum tells you nothing useful about renovation budget planning and gives you no basis for managing cost changes during construction.
Provisional sums. These are allowances inserted into a quote where a cost cannot yet be confirmed, often because design or material decisions are not finalised. A small number of provisional sums is normal. A quote with many of them is a quote where the final cost is genuinely unknown. Provisional sums are where renovation budgets most commonly blow out. Ask what each one covers, what it is based on, and what would trigger it changing.
Inclusions and exclusions. Every item not listed as included is a potential variation cost later. Confirm what site preparation and management is covered. Confirm whether design consultation services or 3D modelling renovations are included or billed separately. Confirm what demolition, waste removal, and council permit fees sit within the contract price.
Fixed price or estimate. These are not the same thing. A fixed price contract commits the builder to a specific cost for a specific scope. An estimate does not. Know which one you are signing, and understand what it means for your exposure if costs increase.
A thin or vague renovation cost estimate is not a starting point to negotiate from. It is a signal about how the company intends to manage the project.
Questions to Ask Before You Sign
These are the questions worth asking every renovation company before you commit. Write down the answers.
- Who manages this project day to day? Is there a dedicated project supervisor on site, or does the principal builder hold both roles?
- What is the renovation timeline for this scope of work, and what provisions exist if it extends beyond that?
- How are variations handled? What triggers an additional cost, and does authorisation need to be in writing?
- What is the payment schedule, and what does each progress payment correspond to? Front-loaded payment schedules, where large amounts are drawn early before proportionate work is complete, are a red flag.
- What does the quality guarantee or warranty cover, and for how long does it apply after practical completion?
- Does the builder manage council planning approvals and building permits Perth on the homeowner’s behalf, or does that responsibility fall to the homeowner?
- What renovation insurance and warranty provisions continue to apply after handover, and under what conditions do they apply?
Contract Terms Worth Reading Carefully
This is not legal advice. It is a list of the clauses that cause the most problems when homeowners have not read them closely before signing.
A brief note first: renovation contract terms in WA are governed by the Home Building Contracts Act 1991 for contracts above a certain value. Understanding your rights under that legislation is worth a separate conversation with your builder or a legal adviser if the project is substantial.
Scope of works. This should match the quote exactly. If it does not, ask why before signing. Any discrepancy between the quote and the contract scope is a gap that can be filled with a variation cost later.
Variation clauses. Understand the process: who initiates, who authorises, and whether authorisation must be in writing. Verbal agreement to a variation that becomes a written cost is a common source of dispute.
Payment schedules. Each progress payment should correspond to a clearly defined construction milestone. If the schedule is tied to dates rather than milestones, or if the first payment is disproportionately large, seek clarification before signing.
Practical completion. The contract will define what “practical completion” means. Make sure that definition matches your expectations. A builder may consider a project complete when a list of minor defects exists. You may not.
Dispute resolution clause. Know what process applies if something goes wrong. Most standard residential contracts include a prescribed process. Read it.
Termination clauses. Who can terminate, under what conditions, and what happens to money already paid? These clauses matter most when a project goes badly. Most homeowners do not read them until it is too late.
How MJD Projects Approaches This
MJD Projects operates as an in-house design and build company. Plans are drawn to be built. That keeps renovation cost estimates accurate from the outset and reduces the variation risk that comes from coordinating separate design and construction firms.
Project management is structured. Each project has clear responsibility for site supervision and client communication, so homeowners are not left chasing updates or trying to resolve coordination problems between parties.
The work MJD takes on includes character home renovations, home extensions Perth, second storey additions, and full home renovations across Perth. The portfolio and client references are available on request.
If you would like to discuss your project scope, get in touch with MJD Projects.
Conclusion
You now have a framework. Licensing, insurance, portfolio depth, quote structure, pre-contract questions, and contract terms. These are the things that distinguish a renovation builder worth trusting from one who looks the part until the project starts.
What happens next depends on the questions you ask and how clearly those questions get answered. A builder who is confident in their process will have no difficulty answering any of them.
Frequently Asked Questions
How do I check if a renovation builder in Perth is properly licensed?
Visit the Building and Energy section of the DMIRS website and search the public register using the builder’s name or licence number. Any builder registered to carry out residential construction work in WA must appear on that register. Ask the builder for their licence number before you begin the process, and verify it yourself rather than relying on documentation they provide.
What is home indemnity insurance and do I need to see evidence of it before signing?
Home indemnity insurance is a policy required in WA for residential building contracts over $20,000. It protects homeowners if the builder dies, becomes insolvent, or disappears before completing the work. You are entitled to see evidence of the policy before you pay any deposit. A reputable renovation builder will provide this without hesitation. If a builder resists this request, treat that as a serious concern.
What should a renovation quote include to be considered complete?
A complete quote should include itemised line items for all work, a clear list of inclusions and exclusions, any provisional sums with a note on what they cover, allowances for site preparation and management, details of what design or documentation costs are included, and a statement of whether the price is fixed or an estimate. A quote that presents only a lump sum total does not give you enough information to manage the project or compare it meaningfully with other quotes.
What are provisional sums and why do they affect my final renovation cost?
A provisional sum is an allowance included in a quote for a cost that cannot be confirmed at the time of quoting, often because a material, product, or design decision is not yet finalised. The final cost of that item may be higher or lower than the allowance. A large number of provisional sums in a quote means a significant portion of the total budget is not fixed. This is where renovation costs most commonly exceed the original figure. Before signing, ask what each provisional sum covers and what would cause it to change.
Who handles council planning approvals and building permits on a renovation in Perth?
This varies by company and by project. Some renovation builders manage council planning approvals and building permits Perth as part of their service; others treat it as the homeowner’s responsibility or charge separately for it. Confirm this in writing before signing. Permit requirements depend on the scope of work, the property type, and the local government area. For work involving structural changes, additions, or heritage-listed properties, the approvals process can affect your renovation timeline considerably.
What is a reasonable payment schedule for a home renovation project?
Progress payments should correspond to defined construction milestones, such as slab down, frame up, lock-up, and practical completion. Each payment should be proportionate to the work completed at that stage. A schedule that requires a large upfront payment before substantial work has commenced is not standard and warrants scrutiny.
What questions should I ask a renovation company before signing the contract?
Ask who will manage the project day to day and whether there is a dedicated project supervisor. Ask for the renovation timeline and what happens if it extends. Ask how variations are authorised, what the payment schedule is tied to, what the quality guarantee covers and for how long, whether the builder handles council planning approvals and building permits, and what warranty provisions apply after handover. Write down the answers. A builder who is confident in their process will answer these directly.
How long should a renovation warranty or quality guarantee last in WA?
Under WA legislation, certain implied warranties apply to residential building work regardless of what the contract states. Ask your builder to explain what their quality guarantee covers, how defects are reported, and how they are rectified, in writing, before you sign.
