Cape Town, 13 November 2025 – Home renovations, solar installations, and water-saving upgrades are on the rise across South Africa. Yet, the Master Builders Association Western Cape (MBAWC) warns that many homeowners enter into contracts without understanding their rights, the contractor’s obligations, or the need for clear agreements and insurance. The result is often expensive disputes.
A Growing Problem in the Building Sector
Sihle Zikalala, Deputy Minister of Public Works and Infrastructure, recently noted that South Africa spends significant sums resolving construction-related conflicts. Disputes are on the rise, particularly in renovations and retrofits.
“Homeowners often rush into projects without understanding the contracts, warranties or insurance requirements,” says Chandré Abrahams, MBAWC Marketing Committee Chairperson. “When material and labour costs rise, disagreements escalate quickly if expectations are unclear.”
Common Mistakes That Lead to Disputes
The MBAWC highlights typical errors:
• Signing contracts without reading the fine print
• Failing to check contractor registration
• Relying on verbal promises
• Ignoring warranties and insurance
• Starting projects with vague timelines and payment terms
“Poor communication is one of the biggest culprits,” says David Gelb, MBAWC Membership Services Officer. Many homeowners choose the cheapest quote rather than the most suitable contractor.
Why Every Project Needs a Solid Contract
Gelb says every project must begin with a “meeting of the minds”. A fair contract should include clear start and finish dates, penalties for delays, payment terms, insurance duties and dispute resolution steps.
Abrahams stresses the importance of understanding retention (holding back payment for defects) and provisional sums (estimates versus fixed costs). “These details matter when things go wrong.”
Insurance Responsibilities Are Often Misunderstood
Insurance is one of the most overlooked areas. Ron Petersen of Risk Benefit Solutions explains that responsibility differs between new builds and renovations.
For new builds, the contractor usually carries contract works, public liability and Sasria cover. Policies must name the employer, contractor and subcontractors.
For renovations, the homeowner has responsibility for contract works insurance and Sasria. “Not clarifying this upfront leaves costly gaps in cover,” Petersen warns.
Insurers must be informed if a project runs over schedule or if the policy risks lapse.
Renovations Can Affect Home Insurance Cover
Abrahams says homeowners often forget that upgrades such as solar panels or structural changes alter the property’s value and risk profile. Most insurers require an endorsement that includes contractor details and project duration.
Minor upgrades may fall under a standard homeowner policy, but major renovations typically require a contractor’s all-risk policy.
Warranties Offer Important Protection
Warranties for materials and workmanship protect homeowners against early failures. “Always request written warranties and keep them safe,” says Abrahams.
How to Handle Disputes When They Arise
Even well-planned projects can face problems. “Early resolution is always the most cost-effective option,” says Abrahams. Begin with direct conversation, then proceed to mediation if necessary. The MBAWC can also assist.
Gelb adds that many contracts already include dispute resolution clauses. “Know your contract. It’s there to protect you.”
Why Knowledge Is a Homeowner’s Best Defence
Homeowners who understand their rights can ask better questions, demand fair terms and lower their risk. Choosing reputable contractors, ideally those who are MBAWC members, is essential.
“The best foundation for a home project isn’t concrete. It’s a solid contract and a clear understanding of your cover,” Petersen says.
MBAWC Support for Homeowners
The MBAWC provides contract templates, guidance and access to expert advice. It urges homeowners to use recognised industry-standard agreements and to seek support early when issues arise.
