Insights / March 2nd, 2020

Builders beware: licensing changes are coming as of 1 July 2020

Consumer and Business Services has recently confirmed that, as of 1 July 2020, amendments to the business criteria and financial requirements for holding a South Australian building work contractor’s licence under the Building Work Contractors Act 1995 (SA) will be enforced.

The amendments will provide for:

  1. new building skills requirements, pursuant to new licensing rules;

  2. the requirement for licence applicants to complete training in relation to costing, construction planning, contract administration and dispute resolution; and

  3. the need for builders to produce a “certificate of eligibility” in regard to indemnity insurance.

The Commissioner for Consumer Affairs, Dini Soulio, said that these amendments are being made because domestic builders have been seen to be overextending themselves, thereby creating the potential for “dire consequences” such as the recent spate of insolvencies in the industry. The amendments aim to assist builders to gain a better understanding of their financial position, as well as the ability to realistically assess the amount of work they are able to take on.

Domestic builders applying for a new licence should be aware of the implementation of these changes as of 1 July 2020 because they will need to comply with the new regime. Current licensees may also need to comply with the new requirements where they seek to expand or change the conditions of an existing licence.

For more information or specific advice regarding your construction business, please contact Matthew Hawke or any member of our Building, Construction & Infrastructure Team.

This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.