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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-11-23 Daily Xml
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HOUSE BUILDING AND RENOVATING

The Hon. R.P. WORTLEY (14:57): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about building or renovating a home.

Leave granted.

The Hon. R.P. WORTLEY: Building or renovating a home can be a very complicated and stressful process. It is important that consumers who undertake such projects have access to information, advice and dispute resolution in the event that something goes wrong. Will the minister inform the council of the resources and advice the Office of Consumer and Business Affairs provides to consumers who undertake a house-building project, which is often one of the biggest financial decisions that consumers will ever make?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide) (14:58): I thank the honourable member for his most important question. Building, extending or renovating a home can be one of the most rewarding projects one can undertake. As I can personally attest (and I am sure others in this place would agree), it can also be an extremely stressful, complicated and drawn-out process, with all sorts of unintended consequences and outcomes, which usually result in greater expense than perhaps anticipated and with the time frame for the work sometimes extended way beyond that initially committed to.

When something does go wrong, it is most comforting that the Office of Business and Consumer Affairs (OCBA) provides free advice and also a dispute resolution service. When entering into a contract to build, extend or renovate a home, it is vital that consumers always use a licensed and reputable builder. Consumers should also not be afraid to ask questions and request that all quotes and decisions be recorded in writing, with a copy of that information being kept by the person concerned.

For consumers building a new home, the first decision to be made is where the house is to be situated. Consumers should make a list of preferred locations that fit within their price range, and they should think about the facilities and amenities that are needed now and those that may be required into the future. There are also a number of other considerations, such as soil stability, building and zoning regulations and site access for the heavy machinery required to construct the home. I suggest that consumers not let their emotions get the better of them and that they inspect and carefully consider a variety of blocks before settling on their final choice. It is very easy to be caught up in the excitement of the moment and often live to regret that decision.

When considering building options there are an overwhelming number of choices, such as kit homes, display homes, house and land packages and transportable homes. There are many differences and considerations to take into account when making this decision and, once again consumers need to carefully research all options before making a decision. As I said earlier, consumers should use only appropriately licensed builders and ensure that their builder holds a current and appropriately endorsed building work contractor's licence and supervisor's registration to perform the agreed work.

It is vital that consumers feel that they can communicate freely and openly with the builder, and therefore the selection of a builder is one that a person should not take lightly. It is sensible for consumers to obtain written itemised quotations from at least three licensed builders and develop good, open communication with their builder, even at that early stage, as it is important to ensure that there are no misunderstandings about the work that is to be completed and the price is what is expected.

A written contract is required for any building work costing $12,000 or more. However, a contract in writing is still desirable if the work is under $12,000. The contract is an important document that sets out the agreement. Amongst other things the contract must be legible, include the name and licence number of the contractor and set out in full all the contractual terms. There are certain implied warranties on the part of the building work contractor, including that the building work must be performed in a proper manner to accepted trade standards and in accordance with the agreed plans and specifications, and also that materials supplied by the building work contractor must be good and proper materials.

If a building work contractor performs work or provides materials that do not comply with the legislated warranty entitlements, the consumer should first talk to their building work contractor and, if that does not work, they may need to seek advice from OCBA. As mentioned earlier, OCBA provides a free advice and disputes resolution service. OCBA also produces educational publications, such as 'Building, Extending, Renovating a Home—A Consumer Guide' booklet, which I highly recommend, as it is great reading if you are looking at building.

This publication provides advice and information about what is often and can be a complicated topic in language that is clear and easy to understand. I encourage anyone experiencing difficulties or simply seeking information about the process to obtain a copy of that publication from OCBA. Consumers who would like to discuss their rights and responsibilities are also encouraged to contact OCBA, and there is a toll free number for country callers.

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