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CAUTION!

Before signing contracts or paying deposits for building work on your home, please read the following vital information concerning your rights and the obligations of builders regarding Licensing, Insurance and Contracts. Regulations vary in each state; please check local requirements for your area.

Licensing
A Builders Licence number should be displayed on advertising and paperwork. Licence details can be checked at the website of the relevant authority in your state, such as the Department of Fair Trading in NSW. See www.fairtrading.nsw.gov.au. Type “Builders Licence check” into your search engine.

Some licences are restricted to certain types of work. You should check that the builder is licensed to carry out all the works required on your property.

Insurance
Some states require the builder to take out Warranty Insurance. For example, in NSW, Home Owners Warranty Insurance must be taken out for all jobs over $20,000. It is illegal to split contracts into two parts (eg . materials and labour) to avoid this obligation.
A builder must also carry his own insurances for Public Liability and Workers Compensation. You can request to see Certificates of Currency for these policies.

Contracts
Do not sign a contract until you are fully satisfied with all aspects of the agreement, and do not be pressured into signing immediately. If a deposit is requested, there are limits to the amount which can be taken. For example, in NSW, the limit is 10% of the contract price for jobs up to $20,000, and 5% of the contract price for jobs over $20,000. The contract should set out a schedule of payments which will be required at different stages of the work.

Ask for details of the contract cancellation policy if you change your mind or need to cancel.

The Housing Industry Association provides useful information for consumers. See www.hia.com.au

For further information on all these matters, contact the Cladding Advisory Service
on
1300 66 55 43 or submit an online enquiry.
© Cladding Advisory Service 2010
Website: b.b.adverticing
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