Tradies SA - Building a New Home in Adelaide: Contracts and Insurance

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Helping Adelaide to get the job done right

Information Sheet

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ou have decided upon a builder for your new home, and are now at the stage of signing a contract and preparing for the job to begin. It is important to know what your rights and obligations are, and what you can reasonably expect to find in a contract with any new home builder in South Australia.

Insurance

When your home is being built, it is usually the builder’s responsibility to take out insurance (although this may depend on the terms of the contract). However, any items on the site that belong to you are your responsibility. You should ensure that you take out Public Liability Insurance, to protect yourself should anything untoward happen on the site that could be deemed as being caused by negligence on your part.

Building Indemnity Insurance

If you are having building work undertaken in South Australia that requires Council consent and costs more than $12,000, the work must be covered by Building Indemnity Insurance. It is the builder’s responsibility to ensure that such insurance is in place before work begins. Local councils will not grant development consent until they are satisfied that Building Indemnity Insurance has been taken out. South Australia has in place legislation that provides you with statutory warranty benefits to ensure that the work is undertaken in a proper manner, and as per the plans

Building a New Home in Adelaide Contracts and Insurance and specifications. This also applies to the quality of the materials used during the building process. Your builder is required to give you a copy of the certificate of insurance, and you should retain this should you at any stage need to claim for a breach of the warranty provisions.

Council Approval

Your local council will need to have granted development approval before work can begin on building your new

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