How To Select a Homebuilder?

When choosing a home builder, consumers should take a thorough and structured approach to ensure they select a reputable, experienced, and reliable company.  Look for the following.

Check for Credentials and Licensing.  Verify they are legally allowed to operate in your province or municipality. Ensure they are registered with a recognized home warranty provider.  Look for general liability insurance and workers' compensation.

Check for Experience and Track Record. Check for years in business as longevity suggests stability and experience.  Check their project portfolio and review photos and case studies of past homes.  Do they focus on custom builds, subdivisions, or specific architectural styles?

Check References and Reviews.  Ask for references and call previous clients. Check Google, Better Business Bureau and platforms like Safe and Trusted Canada. Are there any unresolved disputes or lawsuits?

Transparency and Communication.   Quotes and contracts should offer detailed written estimates and contracts that outline timelines, materials and responsibilities.   Communication should be responsive and open during early interactions.  Ask how they handle changes during the build.  Ask how they resolve issues.  Do they allow site visits?  Do they list their subcontractors?   Do they use durable and energy-efficient materials?  Will you have a dedicated contact?

Check for Financial Stability. Avoid Builders that require large upfront payments.   Ensure trades and suppliers are paid to prevent liens on your home. An unstable builder may abandon projects halfway through the job.

Check the Build Process and Timeline.  Check the timeline for the project and how delays are handled.  Will the homebuilder provide updates at key stages?

Check for Association Membership. Membership often reflects that the builder is serious about their trade and staying informed about building codes, practices, and industry standards.  Builders usually gain access to training, seminars,  and trade information that can help them improve their business.  However, association memberships do not guarantee quality of workmanship, financial stability or that the association will handle complaints on your behalf as a consumer.   Association membership is one credibility factor and not a seal of approval.

There are Common Problems Facing Consumers. Poor Workmanship or Defective Construction is one issue, and defects often don't show up until months after move-in, making warranty coverage critical.

Project Delays are another issue due to poor scheduling, weather, supply shortages, or a lack of skilled trades. Some stop work mid-project due to cash flow issues or overcommitting to too many jobs. This can lead to temporary housing costs, moving delays, financing problems, and extreme stress. Homebuilders may contract trades at the lowest possible rates, meaning your home is not their priority.

Consumers have experienced budget overruns and hidden costs; some have faced thousands of unplanned expenses. Lack of communication is another area where the builder goes silent or does not communicate. Unclear change order procedures and no transparency around delays are one issue. Consumers have faced legal battles with builders who deny responsibility for post-build problems.  Sometimes the builder goes out of business midway through the build.  Sometimes the builder uses unqualified tradespeople who do not have liability insurance or workers' compensation.  Liability could fall on the homeowner if a worker is injured on-site.  There could be lien issues if the builder fails to pay suppliers and trades, which adds legal costs and stress.

Protect Yourself: Use detailed, written contracts.  Anything verbal should be in the contract.   Hire a lawyer specializing in home builds to review documents before signing.   Pay in stages based on progress with no large upfront amounts.
Insist on lien waivers from contractors and suppliers.  Choose a builder with a proven track record and strong warranty support.