How to risk-proof your renovation

So you’re ready to renovate – you know which walls you want to knock out, which tiles for the kitchen splashback, and what furniture will give you the modern feel you want in the living room.

You’ve found a builder who can make it all happen. You have the budget lined up. Everything is ready to go, right?

Wrong. If you’re like 72 per cent of renovators, you haven’t organised insurance for the mammoth task you’re about to undertake. Or like one in five, you forgot to check the licence of your builder.

So, how can you risk-proof your renovation?

Licence checks

First thing: check the qualifications of your builder. A licence indicates your builder has the skills, qualifications and experience to do your job. And if you’re dealing with a licensed tradesperson and the building starts to give you concerns, Fair Trading can help you.

In NSW, you can easily check your tradies licence online here.

Victoria: https://consumer.etoolbox.buildingcommission.com.au/Pages/Search.aspx   

SA: https://secure.cbs.sa.gov.au/OccLicPubReg/LicenceSearch.php

Queensland: http://www.qbcc.qld.gov.au/

WA: http://www.commerce.wa.gov.au/building-commission

Insurance

You might be surprised to learn that your home and contents insurance policy might not cover your renovation.

The Insurance Council of Australia suggests all renovators contact their insurer to ask specifically about renovations and what is and isn’t covered before any work starts, in particular public liability insurance.

And it’s important to speak with your insurer again at the end of your renovation to ensure your policy adequately covers your newly updated home.

Contracts

Depending on the size of your renovation, you may be required by law to have a contract drawn up. But regardless of the size of your renovation, a contract may may give you peace of mind in case of unforeseeable problems during your renovation.

In NSW, if your renovation costs are between $5,000 and $20,000 (including GST), then you need a ‘small job’ contract with minimum basic information. While jobs worth more than $20,000 must be covered by more extensive written contracts. Read more at Fair Trading.

In Victoria, by law you must have a written ‘major domestic building contract’ for work worth more than $5,000. Learn more details at Consumer Affairs Victoria.

In Queensland, you need a contact for any work valued over $3,000. To make it even easier, you can download a contract from the Queensland Building and Construction Commission for your builder to fill out.

In Western Australia, the Home Building Contracts Act 1991 applies to fixed-price contracts for home-building work valued between $7,500 and $500,000. Find more details at the Department of Commerce. 

If you’re living in South Australia and undertaking renovations, you need a written contract for any building work valued at $12,000 or more. See the Government of South Australia website for more details. 

Permits

It’s always best to check with your local council before any work starts to see if you require approval. While most local governments will allow minor internal and external non-structural changes without approval, it’s never a good idea to assume your small project is permit-free.

Any alterations to services such as plumbing, drainage, electrical and gas will require approval by the relevant authority, so be sure to factor this into your timeline.

Expert advice

In order to satisfy budgets, the easy option might sometimes seem like the best solution. But when dealing with things like asbestos-containing structures, lead-based paints, termites and rising damp, it is essential to put safety first. And that generally means calling in an expert – find one near you at www.serviceseeking.com.au.