Before You Build
Importance of building contracts
Importance Of Building Contracts
A domestic building contract is a legal and binding agreement. There is a cooling off period of 5 working days. However it is important to note that cancellation is taken very seriously and it is advisable to get legal advice or contact the Office of Consumer and Business Affairs before proceeding with cancellation. When undertaking a building contract it is essential that you read the OCBA's Schedule 3/Form 1: Your Building Contract: Your Rights and Obligations http://www.ocba.sa.gov.au/assets/files/bos_form_one.pdf
The Contract should contain the following information -
- Your name
- Builder's name and license number.
- Description of work to be undertaken
- Start and Finish dates for the work
- Quotation price and payment schedule
- Possible variable costs
- Date contract is signed
Each page of the Contract must be initialled by both the client and the builder. Copies of the plans, specifications, and builder's insurance certificate should be attached to the Contract, as well as a copy of Schedule 3/Form1 ( http://www.ocba.sa.gov.au/assets/files/bos_form_one.pdf )
Payment
A deposit of no more than $1000.00 should be paid in advance apart from any third party costs such as - Council planning approval, Building indemnity insurance, engineer or surveyor fees.
Progress fees should be requested in writing and payment made after receipt of invoice. Payment should not be made for work that is not completed.
For more detailed information - http://www.ocba.sa.gov.au/licensing/forms.html
Information may also be obtained from specific trade organizations. A list of these along with their contact details is available under our Advice/Builders and Tradesmans Licences section.
