Reducing the risk of things going wrong

Just about any work you may have done on or around your home should be undertaken by BSA licensed contractors (including builders, trade contractors and, possibly, building designers). The following will help to reduce the risk of things going wrong:

• Always use a BSA licensed contractor where required (to check if a licence is required, contact BSA on 1300 272 272 );
• Phone BSA or  visit  BSA's Online Licence Search to ensure contractors are currently and appropriately licensed for your project;
• Check previous work by the contractor (try to talk to past clients - ask for names and contact details);
• Consider using BSA’s Major Works Contract Pack which is suitable for domestic building projects with a contract price exceeding $40,000 - including the construction of an entire house (i.e. Designated Stages Contract). It includes a plain English contract and a full range of supporting documents including BSA's Major Works Consumer Guide and all necessary forms.
  BSA’s Minor Works Contract Pack which is suitable for domestic building projects with a contract price between $3,301 and $40,000. It includes a plain English contract and a full range of supporting documents including BSA's Minor Works Information Statement, and all necessary forms.
  BSA's Contract for Small Building Projects will help if your building project will cost $3,300 or less (including labour and materials). This contract makes it easy to achieve agreement on what's to be done, where, and for how much.  Both parties will be secure in the knowledge that they have a written contact to adhere to and refer to if any dispute arises.

• Make sure you have received from the builder, and read, a BSA-approved Contract Information Statement (BSA’s version is called the BSA Consumer Guide);

• Make sure the contract records, in writing, everything you have agreed to and includes reference to the 5 business day “cooling-off” period;
• If the contracted work involves or affects house foundations, ensure the contractor has given you the relevant foundations data;
• The Domestic Building Contracts Act 2000 (the DBC Act) requires that if the value of the domestic building work is for more than $3300 but less than $20,000, you should never pay a deposit of more than 10% of the total contract price to the contractor; if the value of the domestic building work is equal to or greater than $20,000, you shouldn’t pay a deposit of more than 5%. Note: Although the legislation does not stipulate a maximim deposit for projects less than $3300, BSA recommends that you do not pay more than 20%;
• Do not make payments in advance of work progress. For the construction of a home, check the progress payments set out in the DBC Act. See BSA’s Fact Sheet ‘Deposits and Progress Payments’ for more information;
• Always be very clear about the type of products (e.g. paint) that will be used;
• Don’t sign any document unless you fully understand it - seek legal advice;
• After the contract has been signed, ensure that any changes (‘variations’) are written down and signed by yourself and the contractor;
• Keep a copy of all relevant documents, including variations and plans;
• Regularly check on the progress of the work being undertaken;
• Ensure the contractor provides you with copies of each certificate of inspection as they are issued during construction; and
• Advise your contractor immediately in writing if you notice any problems.

Checklist

• Have I seen and checked the licence card details with BSA?
• Have I obtained 3 comparable written quotes?
• Have I compared the different quotes and contractors’ past work?
• Do I understand the contract and what it includes?
• Have I read and understood the “cooling-off” provisions?
• Are the deposit and progress payments appropriate?
• Has the contractor provided copies of all relevant documents (including the signed contract, a Contract Information Statement, any relevant foundations data and certificates of inspection)?

For further information, contact BSA on 1300 272 272. The BSA Consumer Guide , available from any BSA office, provides useful information on the entire building process.