Choosing the right renovation company can make or break your project. A great builder delivers your dream home on time and on budget. A poor choice can lead to cost blowouts, delays, substandard work, and the stress of disputes. In Melbourne’s competitive renovation market, there are hundreds of companies to choose from — so how do you find the right one?
At Your Story Property, we believe homeowners deserve complete transparency about what makes a renovation company trustworthy. This guide walks you through every step of the selection process — from checking licences to understanding contracts — so you can make an informed choice.
Quick Comparison: Types of Renovation Companies
| Company Type | Best For | Typical Project Size | Cost Level | Design Included? |
|---|---|---|---|---|
| Design & Build Firm | Full renovations, extensions | $50,000 – $500,000+ | Mid–Premium | Yes — integrated |
| Registered Builder | Structural work, major renovations | $30,000 – $300,000+ | Budget–Premium | Sometimes |
| Specialist Renovator | Kitchen, bathroom, laundry only | $10,000 – $80,000 | Budget–Mid | Basic design |
| Project Manager + Trades | Owner-managed with coordination | Any size | Varies widely | No — separate |
Step 1: Check Licences and Registration
In Victoria, any builder undertaking domestic building work valued over $10,000 must be registered with the Victorian Building Authority (VBA). This is non-negotiable — using an unregistered builder means you have no access to domestic building insurance, no warranty protection, and limited legal recourse if things go wrong.
What to Verify
- VBA registration: Search the VBA’s public register at vba.vic.gov.au — confirm the builder’s registration is current and covers domestic building work
- Registration class: Registered Building Practitioner — Domestic Builder (Unlimited) can do any domestic work. Limited registrations cover specific work types only
- Disciplinary history: The VBA register shows any past disciplinary actions, suspensions, or conditions
- ABN verification: Check the Australian Business Register to confirm the business is legitimate and GST-registered
Insurance Requirements
A reputable renovation company should carry:
- Domestic Building Insurance (DBI): Mandatory for all domestic building work over $16,000 in Victoria. Protects you if the builder dies, disappears, or becomes insolvent. The builder must provide this certificate before you pay any deposit.
- Public liability insurance: Minimum $10 million coverage. Protects against injury or property damage on your site.
- Workers’ compensation: Required if the company has employees. Protects workers injured on your property.
Red flag: If a builder can’t provide current insurance certificates on request, walk away. This is basic professionalism and a legal requirement.
Step 2: Evaluate Their Portfolio and Experience
What to Look For in a Portfolio
- Projects similar to yours: If you’re renovating a heritage home, look for heritage experience. If it’s an apartment, look for apartment projects.
- Before-and-after photos: These show the quality of transformation and attention to detail
- Diverse project range: A company that handles kitchens, bathrooms, and full home renovations has broad capability
- Project detail: Good companies describe challenges overcome, not just pretty photos
Visit our project gallery to see how a professional portfolio should present completed renovation work.
References and Reviews
Ask for at least 3 recent client references and actually call them. Key questions to ask:
- Was the project completed on time and on budget?
- How did they handle unexpected issues or changes?
- Would you use them again?
- How was communication throughout the project?
- Were there any defects, and how were they resolved?
Also check Google Reviews, ProductReview, and Houzz. Look for patterns in reviews rather than individual comments — one bad review among 50 good ones is normal, but recurring complaints about the same issues are a red flag.
Step 3: Get and Compare Quotes
The Three-Quote Rule
Get at least three detailed quotes. But don’t just choose the cheapest — the lowest quote is often the most expensive in the long run due to hidden costs, quality shortcuts, and variations.
| Quote Element | Good Sign | Red Flag |
|---|---|---|
| Level of Detail | Line-by-line breakdown by trade and material | Lump sum with no breakdown |
| Allowances | Specific allowances with clear descriptions | Vague “TBC” or “by owner” items |
| Timeline | Week-by-week schedule with milestones | No timeline or vague “8–12 weeks” |
| Exclusions | Clearly listed exclusions | No exclusions listed (everything included? unlikely) |
| Variations Process | Written variation process described | No mention of how changes are handled |
Step 4: Understand the Contract
In Victoria, domestic building contracts over $10,000 must be in writing and include specific items required by law. The major domestic building contract (for work over $500,000) and minor domestic building contract (for $10,000–$500,000) have specific legislative requirements.
Essential Contract Inclusions
- Total price: Fixed price or cost-plus (and if cost-plus, what’s the margin?)
- Payment schedule: Staged payments tied to milestones — never more than 5% deposit
- Start and completion dates: With provisions for extensions of time
- Scope of work: Detailed description and plans
- Specifications: Materials, brands, finishes — everything that affects quality and cost
- Variation process: How changes are quoted, approved, and charged
- Defects liability period: Minimum 12 months under Victorian law
- Dispute resolution: Process for resolving disagreements
- Cooling-off period: 5 business days for contracts over $10,000
Pro tip: Use a standard industry contract (HIA or Master Builders) rather than a builder’s custom contract. Standard contracts are balanced and legally tested. Custom contracts may favour the builder. For guidance on what permits your renovation may require, see our renovation permit guide.
Step 5: Assess Communication and Chemistry
You’ll be working closely with your renovation company for weeks or months. Good communication is as important as good building skills.
Signs of Great Communication
- Responds to enquiries within 24 hours
- Explains technical concepts in plain language
- Provides a dedicated project manager as your single point of contact
- Offers regular progress updates (weekly at minimum)
- Uses project management software for scheduling and communication
- Welcomes questions and provides thorough answers
Learn about our communication approach on our Working With Us page, or read about our step-by-step renovation process.
Red Flags to Watch For
- Requesting large upfront payments: Victorian law limits deposits to 5% for major domestic building work
- Pressure to sign quickly: A legitimate builder respects your right to consider the quote
- No written contract: Illegal for work over $10,000 — and a massive risk for you
- Cash-only payments: Suggests tax avoidance and limits your consumer protection
- No fixed address or showroom: Established companies have a physical presence
- Quotes significantly below competitors: If it’s 30%+ cheaper, something is missing
- Unwilling to provide references: Every experienced builder has happy clients willing to speak
- Subcontracting everything: Some subcontracting is normal, but a company that subs out all work has limited quality control
Frequently Asked Questions
How many quotes should I get for a renovation in Melbourne?
Get at least three detailed quotes. For major renovations (over $100,000), consider four or five. Ensure all quotes are based on the same scope, plans, and specifications so you can compare fairly. The quoting process itself tells you a lot about a company — how they communicate, how detailed they are, and how they handle your questions.
What’s the difference between a registered builder and a licensed builder in Victoria?
In Victoria, builders are “registered” (not licensed) with the Victorian Building Authority (VBA). A Registered Building Practitioner — Domestic Builder (Unlimited) can undertake any domestic building work. Limited registrations cover specific types of work. Always verify registration on the VBA website before signing a contract.
How much deposit should I pay a renovation company?
Under Victorian law, the maximum deposit for a major domestic building contract (over $500,000) is 5% of the contract price. For minor contracts ($10,000–$500,000), the maximum first progress payment is 10%. Never pay more than this upfront, regardless of what the builder requests.
Should I use a design-and-build company or hire an architect separately?
Design-and-build firms offer convenience — one contract, one point of responsibility. Separate architects offer more design flexibility and independence. For most home renovations under $300,000, a design-and-build firm with in-house design capability is the most cost-effective and streamlined option.
What warranty do I get on renovation work in Victoria?
Victorian law provides a defects liability period of at least 6 years for structural defects and 2 years for non-structural defects from the date of completion. Domestic Building Insurance also provides coverage for up to 6 years if the builder cannot complete the work or fix defects.
Can I manage my own renovation without a builder?
You can act as an owner-builder for work over $16,000, but you must obtain an owner-builder Certificate of Consent from the VBA. Be aware that owner-builders take on all warranty obligations and insurance requirements. For most people, the cost savings (10–15%) aren’t worth the risk, time commitment, and complexity involved. Read about the professional renovation process to understand what a good company handles for you.
Make the Right Choice for Your Renovation
Choosing a renovation company is one of the most important decisions in your renovation journey. Take your time, do your due diligence, and trust your instincts. A great renovation company will welcome your questions, provide transparent information, and make you feel confident in their ability to deliver.
Book a free consultation to experience our approach firsthand. Browse our completed projects, read about how we work, or contact us with any questions about your renovation plans.