About Owner Building and Owner Builder Permits in New South Wales

Who needs to be an Owner Builder?

A home owner who wishes to project manage the building of their new home, extension, improvements, dual occupancy, swimming pool or smaller projects such as a garage or deck, on land or a home in which their name is on the Title Deed and where the value of the planned residential building works exceeds $12,000 including materials and labour, must do so officially as an Owner Builder. Sometimes a Licenced Builder or Kit Home Builder may suggest they build for you under your Owner Builder Permit. You must :-

• be over 18 years of age
• own the land or have a prescribed interest in the land (certificate of title or rate notice) on which you plan you build
• you live or intend to live in the completed home or one dwelling of the dual occupancy as your principal residence
• not have built as an Owner Builder in the past 5 years, unless the application and any earlier permit relate to the same land, or unless special circumstances exist

How do I become an Owner Builder and obtain a Permit?

Before applying for a Permit, you must have successfully completed the extensive accredited 91509NSW Course in Owner Builder Compliance, see details below through a Registered Training Organisation (RTO), which comprises of 5 Modules.

Before commencing this course, you must hold a NSW WorkCover White Card. We can help you attend the 1 day course, to obtain one click here if in Sydney, or if you live outside Sydney, outline your location and need.

When you have successfully completed this course, the RTO will issue you with a Certificate of Attainment (COA). Currently once you have obtain a Certificate of Attainment it is 'for life', and so you can use it for future owner building projects and permits.

You then go to any Fair Trading Centre, complete the Application Form, and if approved, you will be issued with an Owner Builder Permit for your current project. When applying for your Owner Builder Permit, you must also provide:-

• a description and address of the proposed work with a copy of the plans and council development application number or complying development certificate number.
• where the value of the proposed work is over $12,000, evidence that you have either completed the approved Owner Builder Course, namely your COA.
• pay the fee (currently $154, which includes a non refundable processing fee of $59)

A Permit cannot be issued for work that has already commenced. A spouse or relative will not be issued with an Owner Builder Permit for their partner’s or family’s land.

Also, there are specific rules for applicants where a company owns the land. Contact Fair Trading for details.

The NSW OFT Owner Builder Course

In 2010, the NSW Office of Fair Trading introduced their new and compulsory course called 91509NSW Course in Owner Builder Compliance. We can help you undertake the course in one of three ways:-

1. Attend an interactive learning Workshop - For more details, click here.
2. Study by Hard Copy Correspondence - For more details, click here.
3. Complete the Online - PDF Course -To enrol and for more details, click here.

It takes many years for a builder to study, be mentored and learn on site. As an aspiring owner builder, you have a lot to learn, understand, and manage before you dive off the deep end and commence construction. So choose carefully the from the learning options, and choose the course format which represents the best way for you to learn and retain the knowledge the most and to also complete the Assessment. It is a large and detailed course of over 700 pages, including the Assessments of the 5 Modules. There is a lot to absorb, totally understand and master. The better you learn, the better you will owner build and minimise making costly mistakes.

Some further important aspects of Owner Building.

Potentially there are savings and satisfaction to build as an owner builder, but there are also many risks, responsibilities and liabilities, do not take short cuts in the learning stage.

Before work commences you need to obtain an Owner Builder Permit, see details above and usually before construction consent is issued by a local council and before finance is approved.

Before construction work commences, and sometimes before a local council will issue their construction consent, you may need to organise Owner Builder Construction and Public Liability Insurance. We can help you, click here to read more or apply online now for a Quick Quote.

If you are planning to do work yourself, or to have family, friends or mates help you FREE, for your peace of mind you may wish to put in place, loss of income and permanent disability or death protection for up to 10 'volunteer (unpaid) workers' on your building site. To organise Owner Builder Personal Accident and Volunteer Workers Insurance, click here to read more or apply online now for a Quick Quote.

If you need on-site guidance or to sort out a problem, engage a member from our Get It Right Network Inspection Services. Either telephone us or advise us of your needs 'online', click here.

If you sell before 6 years have elapsed after your Practical Completion or Occupancy Certificate were issued, it is compulsory to arrange Owner Builder Home Owner Warranty Insurance as part of your Contract of Sale. Need help to arrange this and a mandatory Defects Report? Click here to read more or apply online now for a Quick Quote.

To build without an Owner Builder Permit may involve significant financial penalties, and it will make it extremely difficult if you try to sell within 6 years of completing what you have built. It will be impossible to obtain Owner Builder Home Warranty Insurance.

Finally, one cannot retrospectively apply for an Owner Builder Permit on commenced or completed work. Be aware, you cannot obtain Owner Builder Home Warranty Insurance if you subsequently live outside of Australia.

A bit more about what is Owner Building, from the Office of Fair Trading (OFT)

Owner builder work is any work (including supervision and co-ordination) involved in the construction of, or alterations, repairs or additions to, a dwelling (which includes a house, terrace, town-house, garage, swimming pool and certain other structures and improvements):

• where the reasonable market cost (including labour and materials) exceeds $5,000
• which relates to a single dwelling or dual occupancy:
  • that requires development consent under Part 4 of the Environmental Planning and Assessment Act 1979
  • that is a complying development within the meaning of that Act

Some cautionary words from OFT

As an Owner Builder, you are responsible for:

• overseeing and supervising all tradespeople
• ordering of materials and management of the building site
• obtaining all necessary council and authority approvals
• ensuring that the financial, taxation and insurance requirements of the building work are met and fully comply with all laws
• being aware of your obligations under the Workers Compensation Act 1987 and Occupational Health and Safety Act 2000 and providing a safe work environment that complies with WorkCover requirements
• ensuring any contractor engaged is appropriately licensed and insured to do the work contracted for
• warranting that the work and materials will be fit for the purpose and that the work results in a dwelling fit for occupation

Do your sums before you start and ask yourself if any saving you will make is worth the time and responsibility it will take. As an owner-builder you are guaranteeing the work you undertake.

If you do not want the responsibility of being an owner builder, you should be wary of a builder who suggests you obtain an Owner Builder Permit while they do all the building work for you. This may be a ploy where the builder is shirking responsibility, is unlicensed, or is unable to get necessary insurance.

Tips when engaging Tradesmen

All tradespeople (whether contracting directly with home owners or sub-contracted through a builder), who undertake residential building work costing over $1,000 (labour and materials), must hold a licence from the NSW Fair Trading for the type of work they are to do. Specialist tradespeople who carry out any of the following must be licensed regardless of the cost of the work:

• electrical wiring
• plumbing, draining and gas fitting work
• air conditioning and refrigeration work (except plug-in appliances)

Once you find a trades person and before you sign any contract, do not forget to:

• ask to see their licence
• go to the online licence check on the Fair Trading website to make sure it is current, valid and suitable for the work you want done, or call Fair Trading and do a licence check over the phone on 13 32 20

Each licensed contractor (builder, trades person or project manager) who you contract directly to undertake residential building work must provide Home Warranty Insurance from one of the approved insurance providers, when the total contract sum exceeds $12,000 (including material supplied by the contractor). The certificate of insurance should be provided to the Owner Builder before taking any money on the contract and before starting any work.

Also obtain a receipt for ALL payments you make.

Owner Builder "No Nos"

It is an offence under the Home Building Act (maximum penalty $22,000) for the holder of an Owner Builder Permit to:

• knowingly engage an unlicensed contractor
• lend your permit to another person
• refuse to disclose to an authorised officer the names and addresses of contractors working on the site

An Owner Builder Permit is not a building licence. It does not allow you to:

• do work other than the project covered by the development application or complying development certificate
• do specialist work such as electrical, plumbing, gas fitting, air-conditioning and refrigeration work (unless you hold a licence for such work)

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