SA: Minister warns against advance building payments

AAP General News (Australia)
04-11-2008
SA: Minister warns against advance building payments

ADELAIDE, April 11 AAP - Some South Australian families are facing serious financial
hardship after paying too much up front for home building or renovation projects, the
state government says.

Consumer Affairs Minister Jennifer Rankine said several Port Augusta residents, in
the state's mid-north, had made large progress payments for building work that had not
been completed.

Ms Rankine said under local laws builders could only ask for a $1,000 deposit for domestic
building work worth more than $12,000.

And once construction was underway they could only claim genuine progress payments
for work actually completed.

"Paying too much in advance is simply risky," the minister said.

"If the company folds, or is slow to complete or start the next stage of the building
project, then consumers can be left in the lurch."

Ms Rankine said people might think that paying more in advance gets them a quicker
or better service.

"But paying more up front just carries too many risks," she said.

AAP str/tjd/jfm/mn

KEYWORD: BUILDING

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