What is Building Indemnity Insurance and why does it matter?

Building Indemnity Insurance (BII) protects you if your builder dies, disappears, or becomes insolvent during or after construction. It is required by law in SA for projects over $12,000. Your builder must have BII in place before work starts. Ask to see the certificate.

What should I do if my builder is not responding to defect claims?

Start by putting your concerns in writing via email or registered letter. If the builder does not respond within a reasonable time (14 days), contact Consumer and Business Services SA for advice. You can also lodge a complaint with SACAT. Document everything with photos and keep records of all communication.

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How to Avoid Dodgy Builders in Adelaide

Red flags, warning signs, and how to protect yourself

The vast majority of builders in South Australia are professionals who do quality work. But like any industry, it pays to do your homework. Knowing what checks to run and what warning signs to look for puts you in a strong position to make a confident decision. Here is a practical guide to protecting yourself.

Red flags before you sign

Take your time and do these checks before signing with any builder. Be cautious if a builder: wants you to commit very quickly without giving you time to compare, cannot provide a fixed business address, asks for large upfront payments before work begins, is vague about inclusions or will not provide a written specification, has no display homes or completed homes to show you, will not provide client references, or quotes significantly below every other builder for the same work.

Checks you should always do

Before signing with any builder, check their licence status with Consumer and Business Services SA (CBS). Confirm they have current Building Indemnity Insurance (BII). Search for any SACAT rulings or disputes. Read their Google Reviews and ProductReview feedback, paying attention to how they respond to negative reviews. Ask for at least three references from clients who completed their builds in the last 12 months.

What to do if something goes wrong during your build

If you have concerns during your build, start by raising them in writing with your builder. Document everything with photos and dates. If the issue is not resolved, contact Consumer and Business Services SA for advice. You can also lodge a complaint with SACAT (South Australian Civil and Administrative Tribunal). Having an independent building inspector review the work can provide evidence to support your position.

How to protect yourself

Check the builder's licence at cbs.sa.gov.au before signing anything

Confirm current Building Indemnity Insurance (BII) is in place

Search for SACAT rulings or disputes involving the builder

Read Google Reviews and ProductReview.com.au feedback

Ask for references and actually call them

Visit completed homes, not just display homes

Get everything in writing. Verbal promises mean nothing.

Have the contract reviewed independently before signing

Frequently Asked Questions

You can check a builder's licence status through Consumer and Business Services SA (CBS) at cbs.sa.gov.au. All builders in SA must hold a current licence to carry out building work. If they cannot provide a licence number or it does not check out, do not proceed.

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