It can be exciting embarking on a new build, home renovation project, or perhaps you’re looking at a smaller home improvement task requiring some simple repairs. No matter how big or small the project is, there are some important things to be mindful of when dealing with a builder or tradesperson to help things go as smoothly as possible.
Recent stories in the media about property owners losing out on money they have invested in their home builds and renovations, shows the importance of knowing your rights so you can protect yourself.
If you’re thinking of hiring a builder or tradesperson, take a look at the South Australian government’s list of handy hints and tips.
1. Do your research
Although it may seem obvious, ask yourself the following:
- Have you heard of the builder or tradesperson before?
- What are their reviews like?
- Do you know anyone who has used the builder or tradesperson and would recommend them?
If you don’t know much about the builder or tradie or their reviews are poor – it may be best to look elsewhere.
Get multiple quotes so you can compare prices as the amounts can vary greatly – even for what you might think is a relatively straight forward trades job. Make sure the quote lists the tasks required and states a fixed price. Be wary if a tradie asks you to sign to accept a quote on an electronic device, but the quote does not include a price and only has a vague description of the work. You could end up being charged thousands more than you originally thought and find yourself locked in because you agreed to the very vague quote that was put to you.
For a major building project, ask for references for each builder. When it comes to deciding, don’t just choose the most cost-efficient option.
And very importantly, check that the builder or tradesperson is licensed. It means they have gone through numerous checks before being granted a licence, so this helps to protect consumers from unsafe work and poor business practices.
2. Check on building indemnity insurance
This insurance is required for builds and renovations that cost $12,000 or more and council approval is required. It’s essential to protect you if your builder becomes insolvent, dies or disappears during construction or the warranty period.
Your builder should provide you with a copy of this insurance before the work begins.
Make sure to verify your insurance too, as there have been some reports of fake insurance certificates being issued by builders.
You can easily verify your insurance here.
3. Do not rely on conversation
Make sure to review your contract carefully before signing. Do not rely on any verbal agreements. Any promises or variations to your agreement, should be recorded and signed by both you and the builder or tradesperson.
4. Monitor your schedule
For a major building or renovation project, if your build is running behind, have an open conversation with your builder.
Contact Consumer and Business Services for advice if the reasons for the delay seem unreasonable or if you’re worried the company is in financial difficulty.
5. Know your rights
Read the Building, renovating & extending booklet from Consumer and Business Services (CBS). This booklet covers a range of topics around building and renovating; it will help you to navigate the process and your rights.
More Information
Visit cbs.sa.gov.au/building-protection or contact CBS for advice on 131 822.