Pre-sign due diligence
Budget and liquidation signals
How to test whether the price in front of you is realistic and how to spot public-record signals that a builder may be financially stressed.
What to think about with budget
Under-priced quotes and financially stressed builders are two of the most damaging risks in residential construction. Public-record checks are cheap and available. Do them before you sign, not after a milestone payment.
Checks to run
- Ask what is excluded from the quote.
- Check allowances against realistic product and labour costs.
- Look at the Companies Register, insolvency notices, and related-entity history.
Questions to ask before signing
- What is excluded from the quoted price?
- Has the company or its directors been involved in past liquidations?
- Are progress payments front-loaded relative to work delivered?