What's being decided?
The BII protects homeowners against losses relating to non-completion and breach of statutory warranty (defects) where a builder has died, disappeared, or become insolvent.
The South Australian Government are now reviewing the scheme to understand if it is fit for purpose. This includes examining what is covered by BII, the minimum thresholds for cover, maximum cover limits, and addressing gaps in consumer protection and awareness.
Your feedback will assist us to:
develop a long-term solution for the administrative framework for BII; and
review and strengthen consumer protections.
Background
Under the Building Work Contractors Act 1995 (SA) and Regulations (the Act), it is compulsory in South Australia for builders to take out a building indemnity insurance (BII) policy on all domestic construction projects that:
require development approval; and
have a value of $12,000 or greater.
Other areas being considered include:
Removal the swimming pool and spa construction from Building Indemnity Insurance requirements
The policy currently provides cover up to a maximum limit of $150,000 per project. It protects homeowners against a builder not completing the works and the subsequent defect liability period, which in South Australia continues for five years post completion.
We want to ensure the scheme meets the needs of industry and home builders into the future.
How you can get involved
Find out more
Read the Consultation Paper
Have Your Say
Complete the Survey
Complete the Online Submission form
What are the next steps?
The South Australian will use your feedback to inform recommendations on amendments to Building Indemnity Insurance arrangements and related consumer protections.
Contact SPASA
If you'd like more information, please contact Spiros Dassakis at: spiros@spasa.com.au.