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Reactive clay, old stumps and Melbourne footings

Large parts of Melbourne sit on reactive clay that swells when it’s wet and shrinks through a dry summer. It’s especially common across the basalt plains of the west and north, though pockets turn up right across the metro area. A soil test and an engineer’s footing design are standard for any extension or new build, and skimping on them leaves you with cracked walls and doors that won’t shut a few years on.

Older weatherboards carry their own version of the problem. Timber stumps rot, bluestone stumps sink, floors start to slope and doors drift out of square. Restumping and re-blocking need a BPC-registered builder whatever the price, so don’t let an unregistered crew talk you into a cheap cash job.

Heritage overlays and permits on period streets

Many inner suburbs, from Carlton and Fitzroy to Williamstown and parts of Hawthorn and Kew, are covered by heritage overlays in the council planning scheme. On those streets, demolishing part of a house or adding to it usually needs a planning permit before a building permit, and councils look closely at how much of a new addition can be seen from the street. Build that time into your plans. A house on the Victorian Heritage Register, rather than just under an overlay, goes through a separate permit process with Heritage Victoria.

Building permits in Victoria are issued by a registered building surveyor, at council or in private practice. Your builder will often organise one, but confirm it’s in place before anything gets knocked down.

Checking a builder’s registration in Victoria

Domestic building work worth more than $10,000, counting labour, materials and GST, needs a builder registered with the Building and Plumbing Commission (BPC), which took over from the old Victorian Building Authority in 2025. For a whole house or a job that brings several trades together, look for Domestic Builder (Unlimited). Search the name or registration number on BPC Find a practitioner (builders).

On contracts of $20,000 or more the deposit is capped at 5% (10% below that), and most home jobs over $20,000 are covered by Home Warranty Insurance, with the BPC sending you a notice of cover once the builder pays the premium. Our Victorian licence check guide covers the lookup in detail.

Building costs in Melbourne

Melbourne usually prices a little under Sydney for similar work. As a guide, a single-storey extension runs around $2,500–$4,500 per m², a second-storey addition $3,500–$6,000 per m², and a mid-range bathroom renovation $15,000–$35,000. Hourly work, like small jobs and variations, usually comes in at $85–$150 an hour. Footings on reactive clay, sloping blocks and heritage requirements are the usual reasons a Melbourne quote climbs.

Our builder price guide has more project costs. Use it to sense-check, then get a fixed price in a written contract.

How we match you with a builder

needatradie puts you in touch with one registered local builder, not a list. We check registration, insurance, ABN and reviews before making the match, and it costs homeowners nothing.

Building outside Melbourne? See builders in other cities, or look at more Melbourne trades. To get started, request a free quote.