Changes to the Building Work Contractors Act 1995 (SA)
Posted on March 27, 2026
The rules for builders and contractors in South Australia have changed – and the penalties are far higher than before!
The Building Work Contractors Act 1995 (SA) (BWC Act) regulates domestic building work in South Australia, including with respect to licensing requirements for contractors and supervisors.
In 2024, the South Australian Government conducted a large-scale review of the building and construction industry. Following that review, significant changes to the BWC Act came into effect on 15 January 2026, which included:
- substantial increases in the penalties for non-compliances with the BWC Act;
- additional offences relating to contractor licensing; and
- new penalties for contractors who misrepresent themselves as being properly licensed.
Penalties
The maximum penalty for failing to comply with the formal requirements for domestic building work contracts (section 28) has jumped from $5,000 to $50,000 for an individual or $250,000 for a body corporate. In practical terms, issuing or using a non-compliant contract can now expose builders to crippling six figure penalties!
For a contract to be compliant, the contract:
- must be in writing;
- must set out in full all of the contractual terms;
- must set out the name in which the building work contractor carries on business under the contractor’s licence, the contractor’s licence number and the names and licence numbers of any other persons with whom the contractor carries on business as a building work contractor in partnership;
- must comply with any requirements of the regulations as to the contents of domestic building work contracts; and
- must be signed by the building work contractor and the building owner personally.
In addition to the above, a signed copy of the contract must be given to the building owner as soon as reasonably practicable after it has been signed by both parties together with a notice (Form 1) in the prescribed form. Further, a copy of the contract and the Form 1 must be readily legible.
Builders and contractors should also be aware that the penalty for demanding a payment other than a “genuine progress payment” under a domestic building contract has increased from $5,000 to $100,000 for an individual and $500,000 for a body corporate.
Builders must not engage unlicensed contractors (section 47A)
A new offence is that builders must not engage a person to carry out building work unless that person holds the appropriate licence. This would include builders engaging subcontractors who are either unlicensed or incorrectly licenced. Critically, it is not just the subcontractor who will get in trouble, but also the builder who engaged them.
Breaching this provision could result in a penalty of $100,000 for an individual and $500,000 for a body corporate.
Using another person’s licence is illegal (section 47B)
A new offence is that a building work contractor must not use someone else’s licence in a way that could mislead. This includes using another person’s licence to obtain building indemnity insurance to secure work.
Breaching this provision could result in a penalty of $50,000 for an individual and $250,000 for a company.
Licence misrepresentation can cost hundreds of thousands of dollars (section 47C)
Anyone who holds themselves out as licensed when they are not, or misrepresents licence conditions, commits an offence punishably by fines of $50,000 for an individual and $250,000 for a body corporate! The same penalties also apply to a supervisor who is not registered as a building work supervisor, but who hold themselves out as being registered (section 47D).
Key Takeaways
Ensure your domestic building contracts are compliant. Getting your contract reviewed is inexpensive compared to the penalties now available under the BWC Act.
Before engaging any subcontractor or trade, take steps to confirm that the contractor holds a current licence and that it is the correct class for the work they will perform. Further, you should also check for licence conditions (for example, supervision requirements or limitations on the scope of work).
This article is general in nature and is not intended to provide legal advice to your specific situation. If you have an issue or a particular contract that you would like to discuss, please give us a call and we can tailor our advice to suit your needs.
