> Consumer advice  > Building or renovating a home  > Renovating a home

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• Engaging a builder
• Unfair contract terms
• Owner builder renovator

Renovating refers to upgrading or remodelling a home. It might include re-painting, roof restoration, installation of roller shutters, replacement of floor coverings, re-tiling, re-cladding or window replacement. In fact, any improvements that don't add additional floor area to the home.

Choosing to undertake renovations to your family home is a very big decision, so it is important that you understand your rights and how to exercise them.

You can choose to renovate your home by engaging a licensed building work contractor or by undertaking the renovation yourself as owner-builder.

Your financial and contractual obligations are similar to those with regard to building a home.

When you undertake renovations you may encounter some extra financial and legislative requirements in the following areas:
• Council consent is required if any demolition work is to be done.
• Asbestos may need to be removed, or worked with.
• Installation of 240 volt smoke alarms
• You may need to match existing colours and finishes, i.e. bricks, roof tiles, cladding etc.
• Some older, imperial-sized building products need conversion to metric sized products.
• You need to ensure that existing electrical wiring, plumbing and gas fitting are upgraded to satisfy current standards.

Engaging a builder

If your renovation work is valued at less than $12,000 and you intend engaging a licensed building work contractor, there is no lawful requirement for your builder to enter into a building work contract with you, or for the builder to take out a policy of indemnity insurance. This is because the work is deemed to be minor domestic building work.

If your renovation is valued at more than $12,000, but does not require council consent under the Development Act, your builder must enter into a domestic building contract with you. However, he or she is not required to take out a policy of indemnity insurance.

If your renovation is valued at $12,000 or more and requires council consent under the Development Act, and you intend to act as an owner-builder, you are reminded that you are required to have a private building surveyor or registered building work supervisor oversee the construction. The building work contractor performing any work costing $12,000 or more must take out building indemnity insurance.

Unfair contract terms

The Australian Consumer Law provides that unfair terms in consumer contracts are void. A ‘consumer contract' is a standard-form agreement for the supply of goods or services which is wholly or predominantly for personal, domestic or household use or consumption.

A term is ‘unfair' when it:

• causes a significant imbalance in the parties' rights and obligations arising under the contract; and

• is not reasonably necessary to protect the legitimate interests of the supplier; and

• causes financial or non-financial detriment to a party.

A court must have regard to the transparency of the term and the contract as a whole in determining whether a term is ‘unfair'.

For further information on unfair contract terms, see Contracts.

Owner builder renovator

All aspects of an owner-builder renovation are the same as those referred to when building your own home.

Three new requirements have been introduced to improve sustainability. Two of these requirements apply to homes undergoing significant renovation or extension:

• The enhanced Five Star Energy Efficiency provisions
• New minimum requirements for rainwater tanks. The requirements need to be met for all new homes and significant home extensions.

The technical requirements are contained in the South Australian variations to the Building Code of Australia (BCA2006) and Amendment 13 to the South Australian Housing Code.

For further information please contact the Building Policy Branch, Planning SA on (08) 8303 0600.

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