Commissioner for Consumer Affairs Dini Soulio said that, from 1 July 2020, licence applicants in South Australia will need to complete training relating to costing, construction planning, contract administration and dispute resolution.
“In the discussions I have had with peak industry groups, it has become clear there is concern that some businesses are at risk of overextending themselves,” he said.
“This could have dire consequences not only for the business, but those consumers who have entrusted them with what could very well be one of the most significant purchases they will ever make.
“By introducing new training requirements relating to costing and contract administration it will help those businesses better understand their own financial position, as well as the amount of work they can realistically undertake.”
Mr Soulio said builders will also need to produce a certificate of eligibility for building indemnity insurance.
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A dozen builders have gone under over the past year and whilst they weren’t Master Builders members this has had a devastating impact on the industry. Many of our subcontractor members are owed a lot of money. Common factors in these collapses were underestimating the cost of building and poor cash flow management.
The image of the industry has taken a hit because a minority aren’t doing the right thing. We believe these new licensing requirements will raise the bar for the industry and provide better protection for homebuyers and Consumer and Business Services should be commended for listening to our concerns.