IF you are planning home improvements, Consumer Protection has some important recommendations for you to consider before you hire tradespeople to carry out jobs.
Our top tip is NOT to pay large amounts of money for nothing in return.
Consumer Protection recommends consumers make small deposits of no more than 10 per cent and then make progress payments upon delivery of materials and completion of work.
If a tradesperson insists on a higher deposit and you feel this is justified, for example for customised or made-to-measure products, consider using a credit card. There may be extra fees but at least with a credit card you can seek a charge back from your bank if you do not receive what you paid for. If you pay cash or by bank transfer, you do not have this protection.
When building work is between $7500 and $500,000, the Home Building Contracts Act makes it illegal for the contractor to take a deposit that is more than 6.5 per cent of the contracted price.
Our other key message is to do some research into a tradesperson before you give them money. You need to be sure they are reputable and have a proven track record. The internet is a good place to start.
Get the ABN and search for the business registration on the Australian Securities Investments Commission website.
If they are in a profession that needs a licence or registration (builder for contracts over $20K, electrician, plumber, painter etc) check the licence and registration search facility at the Department of Commerce website.
Individuals and businesses that are on Consumer Protection or the Building Commission’s radar due to complaints or previous legal actions will also be searchable on the Department of Commerce website.
Getting quotes from two or three tradies is also a good idea to compare price and value.
When you select a tradesperson, ensure there is a clear agreement, preferably in writing, on when the work is to start and be completed.
You have the right to cancel the contract and demand a refund if there are unreasonable delays.
Under the Australian Consumer Law (ACL), it is an offence to accept payment for work and then not complete it as agreed, or within a reasonable timeframe.
Under the ACL, services must also be carried out with due care and skill.
If you have a problem with a service provided by a tradesperson, or have paid money and are facing an unacceptable wait for the job to be finished, email us at consumer@commerce.wa.gov.au or call 1300 30 40 54. In some cases, we may refer you to the Building Commission.
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If you need a local tradie for home renovations, LookLocalWA can find one near you.
