What every new builder should know before breaking ground

So, you’ve decided to leap into the building industry, a sector full of promise, opportunity, and yes, its fair share of pitfalls. Whether you’re starting out as a small contractor or launching your own residential building company, there’s more to the job than standing frames and signing contracts. 

Here’s what every builder should keep front of mind when entering the construction industry in 2025. 

1. Understand the true cost of construction

Why it matters: Fixed-price contracts are still standard, but costs are anything but fixed. Material prices have surged by over 40% in recent years, and labour costs continue to climb. 

What to do: 

• • Always build a contingency buffer (10–15%) into your estimates. 

• • Stay updated on pricing trends and supplier fluctuations. 

• • Avoid underquoting to win jobs — it’s a fast track to going under. 

2. Don’t skip planning and site due diligence

Why it matters: Inadequate planning leads to design flaws, delays, and expensive rework — especially if the site isn’t properly assessed. 

What to do: 

• • Ensure soil testing, site surveys, and drainage assessments are done early. 

• • Work with qualified designers and engineers from day one. 

• • Confirm that plans align with local zoning and compliance rules. 

3. Quality over speed — always

Why it matters: In a race to meet housing demand, builders are under pressure to deliver fast. But shortcuts lead to significant long-term defects — from leaky roofs to cracking slabs. 

What to do: 

• • Use qualified trades, even if they cost more. 

• • Insist on quality control checks at every stage of the build. 

• • Learn from the recent defect crackdowns in NSW and QLD — they’re real, and they’re costly. 

4. Know your legal and regulatory obligations

Why it matters: You can’t build without the right paperwork. Permits, insurance, contracts, and compliance reports aren’t just box-ticking exercises — they protect you legally and financially. 

What to do: 

• • Get to know your state’s Building Code and permit processes. 

• • Keep clear documentation on variations, approvals, and client communications. 

• • Don’t begin construction without written contracts in place. 

5. Build a reliable network

Why it matters: A trusted team of subcontractors, suppliers, and consultants can make or break your business. 

What to do: 

• • Vet your subcontractors — don’t just go for the cheapest. 

• • Maintain strong communication with clients and your team. 

• • Be known for paying on time — your reputation depends on it. 

6. Embrace technology early

Why it matters: From estimating tools to project management software, the right tech can reduce admin time, avoid mistakes, and help you grow faster. 

What to do: 

• • Start simple with construction apps that manage scheduling, budgets, and documents. 

• • Utilise cloud-based storage for site photos, plans, and compliance forms. 

• • Consider AI-powered tools for searching for codes, standards, and installation guidelines 

7. Think long-term: sustainability and adaptability

Why it matters: Clients are demanding homes that are energy-efficient, future-ready, and low-maintenance. The market is shifting — be ahead of it. 

What to do: 

• • Familiarise yourself with the National Construction Code’s sustainability standards. 

• • Learn the basics of passive design, solar readiness, and sustainable materials. 

• • Design homes that are adaptable for future upgrades or family changes. 

Final Advice: Don’t stop learning 

The most successful builders never stop learning. Whether it’s business management, construction law, or new materials — staying informed gives you the edge. 

“In this industry, every mistake has a price tag. The more you know, the fewer mistakes you make.” 

Getting started? Here’s a quick checklist: 

Register with your state’s building authority ​☐​
Understand your insurance requirements ​☐​
Use clear, legally vetted contracts ​☐​
Start small — and build your reputation before scaling ​☐​ 

Join a professional builders association ​☐​
Stay informed with construction news and code updates ​☐​ 

Welcome to the industry — now build smart, build strong, and build right. 

If you have questions or require guidance on this topic, don’t hesitate to get in touch with the MBA ACT Advisory Services team at: 

📞 (02) 6175 5900
📧 workplace@mba.org.au