Building indemnity insurance and CITF requirements
Where a construction project is performed, or to be performed, by a building work contractor or on the contractors own behalf, building indemnity insurance is required to be taken out on all domestic building work contracts valued at more than $12,000 (and where development approval is required).
Section 34 of the Building Work Contractors Act 1995 (SA) compels builders carrying out domestic building work to hold a policy of insurance in relation to that work. A copy of the building indemnity insurance certificate must be supplied to council at the commencement notification before works begin.
Building indemnity insurance covers a building owner for defective building work up to an amount of $150,000 in cases where the builder dies, disappears (or is otherwise unable to complete the work or becomes insolvent.
Home owners can check whether builders indemnity insurance has been taken out for a particular address from the QBE website.
Licensed builders may apply for exemption from taking out builders indemnity insurance from Consumer and Business Services in exceptional circumstance. To apply for the exemption, visit the consumer and business services page here.
What is the Construction Industry Training Fund (CITF) levy?
A Construction Industry Training Fund levy is collected on building and construction work in South Australia to fund quality training and initiatives that attract and develop highly skilled workforce within the building and construction industry. Payment of the CITF levy is a legal requirement and payable by the project owner on any building or construction work over $40,000 (Including GST), prior to obtaining building approval.
How is the levy calculated?
The levy is calculated on the estimated project value of building or construction works greater than $40,000 (inc.GST).
The levy is applied at 0.25% of the estimated project value.
How do I make a CITF levy payment?
Payment of the levy is though the Construction Industry Training Board website at citb.org.au. A copy of the payment must be submitted to council with the Development Application to Council.