Building Disputes (SA)

By James Stevens, Director and Solicitor, Go To Court Lawyers. Last reviewed 14 April 2026.

In South Australia, disputes with builders and tradespeople may be dealt with by the Consumer and Business Services (CBS) or by the Small Business Commissioner of South Australia. They may also be dealt with by the courts; however, parties are required to attempt to resolve the situation between themselves before seeking adjudication. This page provides information about resolving building disputes in South Australia.

Building disputes can arise from various issues including defective workmanship, delays in completion, cost overruns, breach of contract, and disagreements over variations. Whether you're a homeowner dealing with renovation problems or a contractor facing payment disputes, understanding your rights and the available resolution pathways is crucial for protecting your interests.

Legislation and guides

In South Australia, building disputes are governed by the following legislation:

• Building Work Contractors Act 1995

• Fair Trading (Building and Construction Industry Dispute Resolution Code) Regulations 2017
• Building and Construction Industry Security of Payment Act 2009

Key Legislative Framework

The Building Work Contractors Act 1995 serves as the primary legislation governing domestic building work in South Australia. This Act establishes licensing requirements for building contractors, outlines statutory warranties, and provides dispute resolution mechanisms. The Fair Trading Regulations complement this by establishing mandatory dispute resolution procedures that must be followed before court proceedings can commence.

The Building and Construction Industry Security of Payment Act 2009 specifically addresses payment disputes in the construction industry, providing a rapid adjudication process for payment claims between contractors, subcontractors, and suppliers.

Small Business Commissioner

If a person is operating a business in South Australia and has a dispute with a builder or trader, they should seek help from the Small Business Commissioner (SBC). The SBC offers a free dispute resolution service and can assist with warranty and contractual disputes, unpaid invoices and other disagreements. Participation in dispute resolution is mandatory prior to filing an application in court.

SBC Dispute Resolution Process

The Small Business Commissioner provides mediation services designed to help parties reach mutually acceptable solutions without the need for formal legal proceedings. The process typically involves initial consultation, where the SBC assesses the dispute and determines the most appropriate resolution pathway. The SBC can facilitate discussions between parties, help identify common ground, and assist in negotiating practical solutions.

The SBC's services are particularly valuable for small building contractors and tradespeople who may lack the resources for lengthy court proceedings. The Commissioner can also provide guidance on contractual obligations, industry standards, and fair trading practices.

Consumer and Business Services

The Consumer and Business Services can assist parties with matters relating to domestic building and trade jobs. The CBS may offer the complainant advice, ask the complainant to write another letter to the other party, ask the complainant to arrange inspections or to obtain an expert report.

If the parties are unable to reach an agreement, Commission for Consumer Affairs may call for a compulsory conciliation conference, which may take place in person, by phone or by video conference. A business can be fined up to $10,000 for failing to attend a conciliation conference.

If the parties do reach an agreement, the business must comply with its terms. If they do not comply, the other party may apply to the court for enforcement.

If the conciliation does not result in an agreement, a party may make an application to the court.

CBS Investigation Powers

Consumer and Business Services has significant investigatory powers under the Fair Trading Act 1987. They can require businesses to provide information, conduct inspections of building work, and investigate complaints about unlicensed building work. The CBS also maintains a public register of licensed building contractors and can take enforcement action against unlicensed operators.

Building disputes and the courts

A person who has a dispute with a builder or tradesperson over a domestic building job may apply to the Magistrates Court for an order in the following situations:

• Where an owner seeks to terminate a contract and have money they have paid returned to them
• Where a party seeks determination of a dispute arising out of a building contract to which a statutory warranty applies
• Where a party seeks relief from a contractual term that is harsh or unconscionable

This application can be made online by following the instructions on this page and providing all the details of the claim including the amount of money owed, the date the dispute arose, and the building contract date.

Court Jurisdiction and Remedies

The Magistrates Court has jurisdiction to hear building disputes involving domestic building work up to $100,000. For larger commercial disputes, the District Court or Supreme Court may have jurisdiction. The court can make various orders including compensation for defective work, orders for work to be completed or rectified, and orders for refund of payments made.

Before commencing court proceedings, parties must provide evidence that they have attempted to resolve the dispute through the mandatory dispute resolution processes outlined in the Fair Trading Regulations.

Statutory warranties

Under the Building Work Contractors Act 1995, the following warranties apply to every contract for domestic building work:

• That the work will be performed in a proper manner to accepted trade standards and in accordance with plans and specifications
• That all materials supplied for use will be good and proper
• That the work will be performed in accordance with the law
• That the work will be performed with reasonable diligence
• That if the work is for the construction of a house, that the house will be reasonably fit for human habitation
• That the building will be reasonably fit for purpose, if a particular purpose has been mad known

If a party to a contract wishes to start proceedings for breach of a warranty, they must do so within five years of the completion of the building work.

Warranty Coverage and Limitations

These statutory warranties cannot be excluded or modified by contract terms and provide important protections for consumers. The warranties cover both workmanship and materials, ensuring that building work meets industry standards and legal requirements. However, normal wear and tear, damage caused by the owner's misuse, and issues arising from the owner's failure to maintain the building are typically not covered.

Payment Disputes and Security of Payment

The Building and Construction Industry Security of Payment Act 2009 provides a streamlined process for resolving payment disputes in the construction industry. This Act allows contractors and subcontractors to make payment claims and seek rapid adjudication of disputed amounts.

Payment Claims Process

Under the Security of Payment Act, a person who has performed construction work or supplied related goods and services can serve a payment claim on the party liable to pay. The recipient must respond with a payment schedule within 10 business days, otherwise they become liable to pay the claimed amount. If a payment dispute arises, either party can apply for adjudication by an authorized adjudicator.

The adjudication process is designed to be fast and cost-effective, with adjudicators required to make determinations within 10 business days of receiving an application. Adjudication determinations are binding and enforceable, though they can be challenged in court in limited circumstances.

Building Defects and Rectification

Building defects are among the most common sources of construction disputes in South Australia. Defects can range from minor cosmetic issues to major structural problems that affect the building's safety or habitability.

Types of Building Defects

Building defects are typically categorized as either major or minor defects. Major defects include structural issues, water penetration, and problems