Being an Owner-Builder. Advantageous or dangerous?
There is little doubt that building your own home is an exciting prospect for any property owner. For a number of reasons, most property owners will elect to have their home built by a registered building practitioner, however, for those who wish to have a more active involvement in the construction process, another option does exist; being an owner-builder.
Who is an owner-builder?
To be an owner-builder, you must firstly own or co-own the land you intend to build on. An owner-builder is someone who takes responsibility for the legal, compliance and insurance requirements associated with domestic building work carried out on their land that would otherwise be the responsibility of a registered building practitioner.
You are an owner-builder if you either intend to use your own knowledge and skills to build or renovate your home, or if you intend to manage qualified trades to undertake building works on your home. Registered building practitioners who intend to build on their own land are also considered owner-builders.
What are the roles and responsibilities of an owner-builder?
The major roles and responsibilities of an owner-builder include:
making sure a registered building surveyor is consulted/engaged prior to obtaining the appropriate building and planning permits in your own name and prior to commencing building works;
managing or undertaking the required building works;
ensuring all building works are legislatively compliant by meeting all relevant codes, regulations and standards; and
arranging periodic building inspections to be carried out as is stipulated in the building permit.
Certificate of Consent
For works that are expected to be over $16,000 (inclusive of labour, materials, and GST), you must obtain a Certificate of Consent from the Victorian Building Authority prior to applying for a building permit and prior to commencing building works.
It is important to note that even when a Certificate of Consent is granted, you are not guaranteed to be issued with a building permit. Prior to applying for a Certificate of Consent, you should consult your registered building surveyor who will assist with the application process.
There are multiple factors to consider when taking control as owner-builder but with that there are many rewards. If you enjoy getting your hands dirty, then it may be the option for you. Getting your owner-builder permit and carrying out the works can be cost-effective, give you control, and can be a really satisfying process, as long as you ensure you are following all the regulations and guidelines.
If you have any questions or queries in relation to being an owner-builder, please reach out to our Building and Construction team.
Author, Jack Rennex.
Key contacts