Read some of our most commonly asked questions. If you can’t find the answer you’re looking for, please don’t hesitate to contact us and we will do our best to help.
Getting started:
Insurance:
Contracts:
Payment:
Liability issues:
Technical terms:
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Answers
What’s the difference between a builder and a tradesperson?
Licensed Builders are registered with their respective state authorities. They manage tradespeople who all have specific licenses covering their trade activity in a specific field.
What is a Licensed Handyman and how is he different from a normal handyman?
Let's be quite clear, Spinners only use qualified and licensed tradespeople. So, when you hire a Licensed Handyman from Spinners what you are getting is a fully trained, fully qualified tradesman who has demonstrated a broad range of skills and competencies. Our Licensed Handymen are often long service carpenters who have seen and done a lot.
Using a Licensed Handyman is the best way to ensure that the job is done right the first time. The common handyman is usually someone who has no formal training, licensing or qualifications. There is usually no testing of their skills and sometimes, even though their intentions may be good, the results of their workmanship can be substandard.
What should I do first to organise my renovation project?
See our Getting Started section for a summary of issues you should consider. In general, research your project beforehand. Once you’ve decided on your budget, then consider the design stage (if appropriate). For a project likely to exceed $75,000, you may need the help of an accredited architect. For projects under $75,000 you may find it more economical to use a draughtsman who can assist with drawings for Council and other requirements.
What permits are required by law before starting a project?
Before starting to renovate you may need a planning permit, a building permit or both. Planning permits are provided by local councils and you must obtain a planning permit before you can be issued with a building permit. A building permit confirms your plans fit in with the building regulations and you must have this before you can build.
To obtain a building permit for work greater than $12,000, you will need your builder to show evidence that he has warranty insurance. Sometimes a building permit is needed even when the value of work is less than $12,000.
What Insurance does a builder require?
When a builder undertakes domestic building work beyond a certain value (usually $12,000), they must obtain Warranty Insurance (sometimes called Builders Warranty Insurance or Home Indemnity Insurance). This insurance is required by law and protects you against major defects in the builder’s work or the builder’s bankruptcy.
In most cases, the insurance covers non-completion of building works or structural defects (for up to six years) and non-structural defects (for up to two years); although this differs from State to State.
The insurance certificate identifies you (as the property owner), the builder and the insurer and gives the address and description of the building works. You will generally only be provided with a copy of our Warranty Insurance after you have entered into a contract.
Contract Works Insurance is also necessary as it covers both Public and Product liabilities. Generally $10m is considered adequate for domestic building.
What sort of contract will I need?
If labour and materials costs are above $1000, you should be provided with a written contract in plain English, as required by law. (Although in some States, a written contract may only be required if the work exceeds $5000).
In most States, local statutory authorities produce a consumer guide, which sets out the inclusions in a standard building contract. In addition you can obtain a plain English contract from either the Housing Industry Association of Australia, the Master Builders Association or the Department of Fair Trading.
It should be noted that Spinners is happy to use any of these contracts for works over $12,000.
What are contract variations and when do they apply?
Variations occur when you change the specifications or plans. If this results in the project cost increasing or the project taking longer, this is classed as a variation to the original contract. All variations must be agreed in writing with the builder and be signed by both you and them and attached to the original contract.
Although, if a variation amounts to less than 2% of the contract price, (State variations may apply) the builder may go ahead and complete the variation without providing a quote, but our practice is to confer with you on all variations.
When does the contract start and when is the finish date?
Contracts usually start the day you sign the contract and a copy of the contract is given to the builder. This is called the "contract date" – but it may not be the starting date for the works or the date by which the building time is calculated.
The start date (commencement date) is usually the first day that work commences on your site. The contract finishes once the premises are safe for occupation, a Certificate of final Inspection has been granted and you are satisfied.
In what circumstances can a contract be terminated?
Generally there are two situations in which you may end the contract (this may differ from State to State):
- When there is a price rise of 15% or more in the contract that the builder could not foresee at the time of signing the contract, or
- Where construction is not completed within one and a half times the period stated in the contract.
If either of these situations occurs and you wish to end the contract, you must give the builder a signed notice stating your reasons for termination. The builder is entitled to a reasonable price for the work completed.
What payments am I required to make and when?
Progress payments may be required under your contract. For major renovations, they are payable at Base Stage, Framing Stage, Lockup and Fixing Stages, which are all clearly defined. For smaller jobs, progress payments are set out in the contract.
Minimum progress payments are governed by law in most states. However, you may agree a different payment schedule with the builder, but not one that is more detrimental for you than that stipulated by law.
When is the final payment under the contract due?
Your builder should only seek final payment when all work is finalised in accordance with the plans and specifications within the contract, and to your satisfaction. When the renovation is complete and safe for occupation, the builder should ensure that you receive a Certificate of Final Inspection, as required by most Councils.
While in most states, it is the owner's responsibility to obtain that certificate, in Victoria it is up to the builder to arrange before they can seek final payment.
As a matter of practice, we will always be on hand to ensure that you obtain the certificate.
For how long am I covered if there are problems or defects?
The defect liability period doesn’t cover normal wear-and-tear or third party supplied products such as stoves and electrical appliances (covered under a separate manufacturer's warranty).
Generally a builder’s defect liability period ranges from three to six months from practical completion, and is covered in their contract with you.
The statutory warranty period (in some states referred to as statutory defect period) can range from six to ten years.
Of course, as a Spinners client, you would also be covered by the Spinners guarantee.
What are my options if I have an issue with the builder?
You and your builder should refer to the contract and discuss any issues you may have. Most issues can be resolved through talking about them and agreeing to a course of action. If a serious issue arises you may wish to contact the Department of Fair Trading.
Spinners has a dispute resolution process where, if we have been unable to resolve the issues through discussion, we may go though a formal resolution process. Spinners abides by the mediation services that aim to secure agreement between us.
What is a Builders License Number?
Building licenses are issued by the Department of Fair Trading or other government department in your state and serve to show that a builder is qualified to perform the building work.
Please contact the relevant authority if you wish to check the status of a building license:
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What are Prime Cost Items and Provisional Sums?
A Prime Cost item is a builder’s estimate of the cost of delivering and fitting of appliances, or other such items, which you have not selected at the time of signing the contract. If the actual cost is less than the estimate, you will receive cover for the difference and if the cost is more, then you pay the difference.
A Provisional Sum is a builder’s estimate of labour and costs such as those associated with foundation works. They include both the builder’s and third party costs.
Both Prime Cost items and Provisional Sums should be listed separately in your contract.
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