A new state government campaign is warning people undertaking new home builds and renovations to do their homework before signing on the dotted line.

Three builders have entered administration in recent months – Felmeri Builders & Developers Pty Ltd trading as Felmeri Homes, 7 Star Construction Pty Ltd and Qattro Built Pty Ltd.

South Australian builders by and large do the right thing, and the state government continues to monitor and work with the sector through the state’s consumer watchdog Consumer and Business Services (CBS).

We are also launching a consumer awareness campaign to help people who are starting to build understand their rights, and the steps they should take when they take on such a significant investment.

The campaign involves targeted social media posts and support to access easy to understand information about the practical steps consumers can take to protect themselves and is supported by a newly updated consumer guide.

If you’re building a home, it is important you ensure you are covered by building indemnity insurance (BII).

BII is mandatory for any construction project valued at more than $12,000 and insures people for up to $150,000 if their builder becomes insolvent, dies or disappears during construction or the warranty period. It is provided by QBE in South Australia and is underwritten by the State Government.

People are at financial risk if there’s no insurance in place and any of the above occurs.

We’ve recently detected a small number of forged certificates and uninsured building projects so it is important that home-builders check their certificate on the QBE website.

Reputation is key in the building industry and a great way to find a reputable builder is by asking friends and family who they have built with and then checking to make sure they’re licensed.

Consumers should carefully review the contract with any builder and not rely on verbal agreements. Any additional promises or variations should be recorded in writing and signed by both them and the builder.

If people are concerned about the speed of their build, they should talk to the builder in the first instance and if the reasons for delay don’t seem reasonable or cause more worry, they should contact CBS for advice on 131 882.