When you hire a builder, electrician, plumber, mechanic, or other tradesperson, you should:
- be clear about exactly what you want done and when you need it finished
- check the tradesperson is qualified
- get at least 3 quotes.
Use licensed tradespeople
Using licensed professionals protects you in several ways. A licensed tradesperson usually has:
- formal training and proven skills and expertise
- insurance cover for the work they do
- an industry code of conduct and professional standards to follow.
You will also have better legal options to resolve disputes with a licensed tradesperson.
Check if your builder, tradesperson or motor vehicle repairer is licensed on the licence register. This is particularly important when using tradespeople from online marketplaces.
Builders, gas fitters, and plumbers
In most areas of Western Australia, builders doing building works worth $20,000 or more must be registered with Building and Energy. Some other work legally requires a licensed professional such as plumbing or electrical work.
Check if the tradesperson is a member of an industry association. This means they are expected to follow professional standards and a code of conduct.
- Plumbers and Gasfitters: Master Plumbers and Gasfitters Association of Western Australia.
- Electrical Contractors: Electrical Contractors Association of Western Australia.
Australian Consumer Law
Tradespeople and builders must also follow the Australian Consumer Law (ACL). This means their work is bound by the consumer guarantees. These include:
- Quality of work: The work must be done with acceptable care and skill.
- Fit for purpose: The materials and services must be fit for the intended purpose.
- Timely completion: The work must be completed within a reasonable timeframe.
- Contract terms: Any terms in a contract must be fair.
Protect yourself when hiring a tradesperson
- Research: Ask for recommendations. Check reviews and recent work references.,
- Get multiple quotes: Get 3 quotes to compare prices and services
- Written contract: get a written contract or quote detailing the work and costs. You may want to include a timeframe
- Insurance: Ensure the tradesperson has insurance to cover any accidental damage
- Keep records: Keep all paperwork such as quotes, invoices, receipts.
You should only go ahead with the work when you have agreed on a quote.
Quotes and estimates
Estimates and quotes are different ways of putting a price on a job or service before the job is done.
- A quote is a total amount forms a binding contract when accepted.
- An estimate is an approximate cost given before a firm quote and can change.
Asking for a written quote can help you to avoid disputes.
It is best practice for a tradesperson to show a total cost including GST. You should ask if GST is included or extra before accepting the quote or estimate.
There might be an expiry date after which the estimate or quote will no longer be valid.
Quotes
A quote is the total amount a tradesperson agrees to charge for a job or service.
You should get at least 3 quotes in writing before agreeing to the work.
Some quotes can attract a fee, so check before getting a quote.
A written quote should include
- tradesperson’s information such as contact details, ABN, licence number
- description of job
- price of materials required
- labour charges
- time needed to finish the job
- Call-out fees. If the call out fee is not included in the quote you do not have to pay them.
- Any weekend or public holiday rates if required.
- details of any potential extra work that could cost more
- terms and conditions (T&Cs), if possible.
When agree to the quote you are accepting the price and T&Cs.
In some cases, the tradesperson may give you a formal contract, which may include a payment schedule.
Estimates
An estimate is a best guess on the cost of the work. The final cost may be higher or lower than estimate.
Don’t accept an open contract because prices conditions can change without your agreement.
A tradesperson must use their skill and experience when estimating costs under the ACL.
Deposits
Some trades require a deposit to book in a job to cover any parts or materials needed to do the job.
You should only pay a small deposit, no more than:
- 10 per cent of the total price
- 6.5 per cent on building contracts valued between $7,500 and $500,000.
You should make instalments as the work is done as set out in your quote terms.
Don’t pay the total amount before the job is completed.
Deposits should cover the builder’s initial costs to get your job started. The builder cannot ask for a deposit of more than 6.5%
Extra work
Tradespeople must get your permission to do extra work.
They cannot do extra work first and ask for payment later.
You do not have to agree to the extra work. If you do agree, you must pay the extra cost.
Ask your tradesperson for a quote on extra work before going ahead. You can get quotes from other tradespeople to check if it is fair.
You don’t have to pay for any extra work done without your permission.
For example: You accept a quote from a mechanic to replace your car’s muffler. When you collect your car, the mechanic has also replaced the tyres and brake pads at an extra cost of $1200.
You did not agree to this extra work, so you only have to pay for the muffler replacement.
If the mechanic asked your permission to do the extra work, and you agreed, then you must pay for it.
Builders
Builders’ insurance
The builder must take out home indemnity insurance in the owner's name for residential building work valued over $20,000. This insurance covers you if the builder becomes insolvent or dies, disappears, or ceases to exist.
The builder must give you a certificate for your home indemnity insurance policy. This needs to happen before they ask you for a deposit or any other payment or start work.
Building and Energy
Building and Energy oversee the building industry and provide advice on your rights relating to:
- building
- surveying
- electrical
- gas
- painting
- plumbing
They licence tradespeople and resolve building service and payment disputes.
They have resources for people building or renovating a home on:
- choosing a building contract
- building your home
- fences, balconies, decks, and pools
- dealing with delays
- supply chain issues and labour shortages
- price increases
- unfinished work and contractor insolvencies
- electrical, plumbing, fire, and gas safety
- painting and decorating
- bushfire and cyclone safety
- being an owner builder
If you are planning to conduct building work yourself, you may need a builder's licence. See owner-builder approval for more information.
If things go wrong and getting help
If your bill is higher than the quote, talk to the tradesperson. If you cannot agree, you can refuse to pay the extra amount.
If there is a problem with the work or materials, you have several options:
- Communicate: Ask the tradesperson to fix the problem. Put in writing what the problem is and suggest a reasonable solution.
- Formal complaint: If dealing with the tradesperson doesn’t work, lodge a formal complaint with
- Consumer Protection: for Australian Consumer Law issues
- Building and Energy: for building, licensing, and contract issues
- Legal action: As a last resort, consider taking legal action.