For further information about the legislation, including the statutory warranties relating to domestic building work in South Australia, please visit the Law Handbook chapter on HOUSING.

Building a home or doing renovations to an existing home is an investment in money and time. At times things can go wrong, and if not addressed can result in a dispute.

Address problems with the building work as they arise. A meeting onsite with the builder or other trades person often resolves the problem.

If you reach an agreement with the builder to fix something within an agreed time, make sure to confirm the agreement in writing. An email is often enough, or you could try to get confirmation by text message. Follow up with the builder if the time frame is not met.

If the problem is not resolved as agreed, or at all, write to the builder setting out your concerns. Give the builder a set time to respond and let the builder know what will happen if there is no reply. Listing the problems in writing avoids confusion and ensures that you cover everything.

Check the building work contract. Some standard form contracts have a dispute resolution clause using an industry association to help resolve the dispute. There is a fee for this and there is no compulsion to do so.

If there is still no response or the builder makes promises that are not kept, get legal advice. Consumer and Business Services has a consumer advice service and can assist consumers with dispute resolution.

Section 8A of the Fair Trading Act 1987 (SA) provides the mechanism for Consumer and Business Services to convene a conciliation conference. A written instrument records any agreement reached at the conference.

If the builder does not comply with the terms of the written instrument, a consumer can issue legal proceedings in the Magistrates Court. For more information about this process, see the Law Handbook chapter COURT-SUING OR BEING SUED.

Be very wary of terminating a building work contract without getting legal advice first. The builder can take legal action to recover any losses, usually the balance of the contract price. This may outweigh the cost of resolving any defects or unsatisfactory work.

If there are unresolved problems with building work and the builder has died, is bankrupt or cannot be contacted, remember that the builder must have taken out building indemnity insurance on your behalf. Check with the council to get a copy of the insurance certificate from the council. The insurance certificate is a prerequisite for the building work.

If you are having problems with the building indemnity insurance company, get legal advice. Building indemnity insurance is a statutory insurance scheme and not covered by the Australian Financial Complaints Authority.

For more information about building work contracts visit the CBS website (link opens new window).