Most demolition contractors in Melbourne are competent professionals. A small minority are not, and they cost their customers real money — sometimes through bad work, sometimes through legal exposure, sometimes through both. Eight warning signs separate the good from the bad before you sign anything. If two or more of these show up in your conversation, walk away.
1. Cash-only quotes
"We can do it cheaper for cash." Always a problem.
What it really means: the contractor is trying to avoid GST and income tax. The cash discount is the tax they're not paying. For the homeowner, that's not just an ethical issue — it's a practical one:
- No tax invoice means no real proof of payment for warranty disputes
- No GST receipt means no records for resale property disclosures
- If the contractor's tax affairs unravel, your job records become evidence in their case
- Cash arrangements often correlate with weak insurance and licensing
Pay the GST. Take the proper invoice. Sleep at night.
2. No licence number anywhere
Look at the truck, look at the website, look at the quote document. The Victorian Building Authority registration number should be visible. The asbestos removalist licence (if they hold one) should be visible. If neither shows up, ask. If the answer is vague, walk away.
Verifying takes 30 seconds: VBA's website has a public registration search; WorkSafe has a public asbestos licence search. Use them.
3. "We don't need a written contract for this"
Verbal agreements work for $200 jobs. They don't work for $25,000 demolition projects. The contract isn't bureaucracy — it protects both parties:
- Defines exactly what's included and excluded
- Sets out the payment schedule and triggers
- Specifies what happens if scope changes
- Documents who is responsible for what
- Establishes dispute resolution if needed
Any contractor who avoids writing things down is doing you no favours. Walk away. More on quote and contract checks.
4. Quote dramatically below the others
If three contractors quote $25k, $26k, and $14k for the same job, the $14k quote is missing scope. It's not a deal — it's a setup for a variation invoice that will land you above the other quotes. Hidden cost detail.
Common omissions in cheap quotes:
- Asbestos handling not included or capped at unrealistic volume
- Asset protection bond not included
- Tip fees calculated as variation rather than included
- Final site clearance scope vague
- Permit costs excluded
If a quote is dramatically cheaper, ask what's not included. The answer is the gap.
5. Pressure to sign on the spot
"This price is only good today." "I have other quotes I need to commit to." "We can start tomorrow if you sign now."
Real demolition contractors have weeks of work booked ahead. They don't need to pressure homeowners into same-day decisions. The pressure is a sales tactic, and it usually correlates with poor performance once the contract is signed.
Take 48–72 hours to compare quotes and check references. Any contractor who can't accept that is not the contractor you want.
6. Vague or missing references
Ask for three recent jobs of similar type. The right answer is three addresses with three contact names. The wrong answers:
- "All my customers want privacy"
- "I can show you photos but not contacts"
- "I'll send some references later" (and they never arrive)
- References from family or business partners (check the names)
Real contractors have plenty of customers happy to take a 2-minute call. Lack of references is a tell.
Don't just collect names — actually call them. Ask: did the work finish on time? Did the final invoice match the quote? Were there variations? Would they hire again? The answers are usually frank and informative.
7. No site walk before quoting
"Just send me a few photos and I'll quote you." That's not a quote, it's a guess. Real residential demolition pricing requires a site walk. Anything else has the contractor's variation buffer baked in to protect against the unknowns. Site walk detail here.
If the contractor won't visit before quoting, the contract you eventually sign will have unfavourable terms — usually "subject to site inspection" clauses that turn a fixed-price into a variable-price after you've committed.
8. Vague or missing insurance details
Public liability insurance protects you if something goes wrong — the demolition damages a neighbour's property, an injury occurs, or a dispute arises. The certificate should be:
- Current (not expired)
- For at least $20m residential / $50m commercial
- Available in PDF on request
- Issued by a recognisable insurer
"We have insurance, don't worry about it" is not an insurance certificate. Why this matters.
The pattern
The eight red flags share a common theme: opacity. Bad contractors avoid documenting things, providing specifics, or offering verifiable claims. Good contractors do the opposite — they over-document, they provide specifics, and they invite verification.
If you find yourself being told "trust me" repeatedly, that's the signal. The right contractors don't ask you to trust them — they show you why you can.
The financial scale of getting this wrong
The cost of hiring a bad demolition contractor isn't just the contract price. It can extend to:
- Variation invoices that double the original quote
- Damage to neighbouring property that you have to fund through legal action
- Council fines for unpermitted work
- Stop-work orders that delay your build by weeks
- Asbestos contamination that costs five-figure remediation
- Insurance claims rejected because the policy was void
The cheapest quote can become the most expensive job. The eight checks above prevent it.
If you've already signed with someone questionable
If you've signed and now have second thoughts, document everything. Get the building permit application status. Verify the licence and insurance through the public registers. Talk to the contractor's site supervisor by phone. If anything still looks off, get legal advice before further payment is made — most demolition contracts include termination clauses, but using them properly requires careful documentation.
The good news: most demolition contractors in Melbourne are honest, qualified, and competent. Use these eight checks to find them, and you'll get the project you signed up for.
