When you need to hire a tradesperson there are some important steps you can take to protect yourself and avoid dealing with a rogue tradie.

Consumer and Business Services (CBS) is aware that some tradies have recently been charging an excessive amount, exaggerating the need for extra work, performing shoddy work or potentially breaching consumer protections under the Australian Consumer Law (ACL).

Follow the advice below to avoid problems the next time you need to hire a builder, plumber, gas fitter or electrician.

Get the scope right

Seek advice from at least three different tradespeople. That will help you know what tasks will need to be carried out, and whether anyone is suggesting tasks that are unnecessary. For example, one tradie might insist on a total replacement for a hot water system, while another might suggest repairs for a fraction of the cost.

Request quotes

When seeking advice about the scope of the work, you may also like to invite each tradesperson you contact to give you a quote. Some tradies charge thousands of dollars more than others, so get three quotes before deciding which tradie to hire. Make sure the quotes are itemised and fixed. Try to do this even if the situation seems urgent, as it can save you a lot of hassle and money in the long run.

Know who to call

Did you know that some companies trade under many different names? You might think you’re requesting quotes from three different businesses, but they could all be the same company or owned by the same company.

The simplest way to check who you’re really dealing with, is by noting their licence number and searching the CBS licensing register to see which business or trading names are connected with that licence.

By law, every builder and tradesperson must display their licence number on any advertising, including on social media, their website and business card. Make sure you only deal with someone who is licensed to do the kind of work you need done. Anyone working without a licence - or outside of what their licence allows them to do – is breaking the law and their work could be substandard.

You can check if a tradesperson is licensed by:

• asking to see their digital licence on their phone or tablet
• checking their plastic licence card
• looking up their licence details on the CBS licensing register
• phoning Consumer and Business Services (CBS) on 131 882.

Please report any unlicensed tradies to CBS via the online consumer complaints form.

It’s a good idea to search online for independent reviews about a tradesperson, and also ask friends and family which tradies they have used in the past and if they would recommend them.

Know your rights with unsolicited sales

If a sale is ‘unsolicited’ you have certain protections under the Australian Consumer Law. If the contract is over $100 then there must be a written contract and you have a 10-day cooling-off period to cancel the contract. With very limited exceptions, the business must not supply any products or services or take any payment during the 10 days.

A sale would be considered unsolicited if:

• a tradie visits your home to inspect an issue after you’ve invited them to simply provide a quote, and you enter into a contract at the time of the quote.
• a tradie ‘upsells’ while at your home by offering to do additional work and providing a quote for the extra work, and you agree to the extra work at the time of this new quote. The contract relating to the additional work would be an unsolicited consumer agreement.
• a tradesperson approaches you uninvited, such as by telephoning you or knocking on your door, and offers to sell you goods or services – e.g. to supply and install solar panels or surface your driveway.

Always take the time to compare quotes from different businesses. Make sure everyone who provides a quote is licensed and do independent research about the business. There have been many reports over the years of itinerant traders taking money upfront, doing a poor-quality job, and then being uncontactable when problems arise.

The following scenarios would not be considered unsolicited:

• you call out a tradesperson to do some repairs
• after receiving a quote from a tradesperson you call them to confirm that you’d like to proceed with the job.

Avoid paying too much in advance

Don’t pay too much in advance to a tradesperson. If the business closes you might lose the money you have already paid to them.

• For smaller jobs tradies usually only require payment at the end of the job.
• For bigger jobs a maximum 10% deposit is recommended.
• For larger domestic building projects the maximum deposit allowed by law is $1,000 for a contract valued between $12,000 up to $20,000. A maximum deposit of 5% of the contract price is allowed for contracts $20,000 or more. You can also be asked to pay for third party expenses in advance – e.g. planning approvals and building indemnity insurance.

Make sure the amount the tradie asks you to pay is the same as the amount on the quote or contract. They must also give you a proof of purchase – e.g. a receipt.

For more information

See the Easy Read brochure for advice about Hiring a tradesperson

For advice about building or renovating projects see the guide Building, extending & renovating a home.