Unregistered building limit increases to $20,000 - What are the implications for consumers?

The Minister for Consumer Protection, Hon Sheila McHale MLA, has approved an increase in the unregistered building limit from $12,000 to $20,000. The limit was last increased in 1998, when it was raised to $12,000 from $10,000. This change will be introduced on July 2, at the same time as the other threshold and limit changes.

What are the implications for consumers?

From 2 July, persons who carry out building work valued at less than $20,000 will not need to be registered builders. This will probably mean consumers who are undertaking minor new work or renovations will be more likely to use unregistered persons to carry out this work. While this is not necessarily a problem, it is likely that the unregistered persons will not have the experience and knowledge of a registered builder.

Since Home Indemnity Insurance is no longer mandatory for work under $20,000, consumers will not have the opportunity to obtain compensation to cover bankruptcy or other factors that might prevent the completion of the contract.

The Building Disputes Tribunal will still be responsible for hearing workmanship disputes that fall under $20,000. Despite this, CAWA believes this change will not benefit consumers who undertake minor works or renovations, particularly vunerable groups such as the elderly who may not understand the contractual issues involved in small building projects.

Last modified: 20 April, 2007