Owner/Builder Permit Guidelines

Please note that these are guidelines only and not a substitute for the Act and Regulations.

Who is an Owner Builder?

An Owner Builder is anyone who does owner builder work and is issued with a permit for that work.

Only one owner builder permit can be issued within any five year period.

What is Owner Builder Works?

Owner Builder Work is any work (including supervising and co ordinating work) involved in the construction of, or alterations, repairs or additions to, a dwelling (which includes a house, terrace, town house, garage, swimming pool):

• Where the reasonable market cost (including labour & materials) exceeds $5000
• Which relates to a single dwelling or dual occupancy:

  That requires development consent under Part 4 Environmental Planning & Assessment Act 1979

  That is a complying development within the meaning of that Act

• Where the work is done by an owner of the land (or a person having a prescribed interest in the land) upon which the work is to be carried out.
• An Owner Builders Permit does not allow you to do specialist work such as electrical, plumbing, gasfitting, air conditioning and refrigeration works (unless you hold a license for such works).

Who must Obtain an Owner Builder Permit?

If you are going to do Owner Builder work as described above and you are not the holder of a contractor license issued under the Home Building Act 1989, you must obtain an Owner Builder Permit.

You will not need a permit (or contractor license) to do building work (not being specialist work) on your own home if the work is valued at $5000 or less, or it does not require a development approval.

A licensed contractor may apply for an owner builder permit for work on their own home, and gain the benefit of not needing home warranty insurance unless and until they sell the home within six years.

What are the Responsibilities of the Owner Builder?

As an owner builder, you are responsible for:

• Overseeing and supervising all tradespeople
• Ordering and delivery of materials and management of the building site
• Obtaining all necessary Council and Authority approvals for the work
• Ensuring that the financial, taxation and insurance requirements of the building work are met and fully ensuring compliance with all laws
• Providing a safe work environment
• Ensuring any contractor engaged is appropriately licensed to do the work contracted for
• Warranting that the work results in a dwelling fit for occupation
• The applicant must be an owner of the land and meet the educational requirements of an owner builder. A spouse or relative will not be issued with an owner builder permit for their partners, or familys land.

How do you get an Owner Builder Permit?

To get an Owner Builder Permit you must apply to a Fair Trading Centre and show that:

• You are over 18 years old
• You own the land or have a long term lease, or you own shares alone or with other individuals in the company that owns that land
• You live or intend to live in the completed home or one dwelling of the dual occupancy as principle residence, you should also provide:
• A description and address of the proposed work with a copy of plans and council development application number or complying certificate number
• The owner builder permit application fee
• You have completed an approved owner builder course or have equivalent qualifications and experience (if the proposed project is over $12000). This requirement is to ensure that owner builders have information relating to the Home Building Act, statutory and recommended insurance, license, contracts, building approval processes, occupational health & safety, and other building related matters.

For information on approved owner builder courses and equivalent qualifications, the following publications are available from Fair Trading Centres and the Offices Website:

• Owner Builders approved Courses (FTB22)
• Owner Builders approved equivalent qualifications (FTB23)

Contracts?

As an owner builder you will probably be entering into several contracts with different tradespeople.

Tradespeople must hold a license from the Office of Fair Trading for the type of work they are to do. Once you find a tradesperson and before you sign any contract, don?t forget to:

• Ask to see their license
• Go to Office of Fair Trading online license check and look up their license details to make sure it is current, valid and suitable for the work you want done, or call the Office of Fair Trading and request a license check.

Once you decide on a quote the contractor should give you a written contract for both to sign whenever the work exceeds $1000. By law all building trade contractors doing residential building or any specialist work valued over $1000 must provide a contract in writing to the homeowner.

Contractor Insurance?

Each licensed contractor (builder or tradesperson) who contracts directly with the an owner builder to undertake residential building work must provide to the owner builder home warranty insurance before taking any money on the contract and before starting any work.

Between 1 May 1997 and 1 April 2002 insurance was required where the cost of the work exceeded $5000. Since 2 April 2002 insurance is required where the cost of the contractors work exceeds $12000.

If & when an owner builder decides to sell their home within six years after completing the work, the owner builder will need to take out home warranty insurance and the sale contract must:

• Include a note that an owner builder permit was issued in relation to the work and that the work done under the permit required home warranty insurance
• Have the Home Warranty Insurance Certificate attached

Make sure you contact the insurers well in advance of marketing the property to check their requirements for insurance.

Other areas of Insurance that an Owner Builder must have prior to commencing any works:

• Builders all risk insurance (both owner builder & trade contractors)
• Public liability insurance
• Workers compensation insurance

For More Information

More information on Owner Builder Permits can be obtained from:

Office of Fair Trading on 133220 or click on the link below to their website:

Your Local Council or Government Agencies

© 2008 Wakool Shire Council
This page: http://wakool.local-e.nsw.gov.au/faqs/pages/26393.html