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The
following information is intended
to assist those who intend to carry
out, manage or arrange building work
as an Owner/Builder.
As
an Owner Builder you need to be aware
of the following information:
1.
Any non exempt* person who undertakes
building work on your behalf to a
value exceeding $12,000 (inclusive
of materials) is required to be a
Registered Building Practitioner and
to carry the appropriate Insurance.
The Owner Builder is required to provide
to the Relevant Building Surveyor
the name, category/class and Building
Practitioners’ number of all
persons who undertake building work
where the value exceeds $12,000. (Section
136(2) Building Act 1993 – maximum
penalty of $10,000 for natural person
& $50,000 for Body Corporate;
Section 176(2A) Building Act 1993
– maximum penalty of $10,000).
2.
An Owner Builder is required to enter
into a written Domestic Building Contract
with certain non exempt* tradespersons
including Carpenters, Bricklayers,
Concreters, roof tilers, cabinet makers/kitchen
companies, Re-stumpers, re-roofers
and bathroom renovators where the
value of their building works is in
excess of $12,000. These tradespersons
are required to be Registered Building
Practitioners with the Building Practitioners
Board and provide the appropriate
Warranty Insurance for their component
of the building work.
3.
If an Owner Builder sells the building
within 6.0 years of the date of completion,
that is, the issue of an Occupancy
Permit or Certificate of Final Inspection
in respect of this building work,
they are required to:
i) obtain an inspection Report for
the building work carried out (prepared
by a Prescribed Practitioner not more
than six months before entering into
a contract to sell the building) listing
the details of the building work,
conditions , defects, incomplete work,
etc and,
ii)
The Owner is required to take out
an appropriate Insurance Policy for
the benefit of the purchaser. (Obtain
the Prescribed Warranty Insurance
cover for the building work, which
will cover the time remaining of the
six years, which commences from the
date of completion of the building
work). (Section 137B Building Act
1993 – maximum penalty $10,000).
4.
An Owner Builder must have the necessary
knowledge and experience to act as
an Owner/Builder.
5.
An Owner Builder must not have any
other person apart from him/her self
to supervise or manage the building
work.
6.
After the issue of a Building Permit,
the Owner Builder is required to notify
the Relevant Building Surveyor in
writing within 14 days after any change
in the name or address of the Owner
or of any Builder carrying out the
building work. (Regulation 319 Building
Regulations 2006 – maximum penalty
of $1,000).
7.
After the issue of a Building Permit,
an Owner Builder is responsible to
notify the Relevant Building Surveyor
without delay after the completion
of each mandatory notification stage
of that work. (Section 33(1) Building
Act 1993 – maximum penalty of
$1,000).
8.
If an Owner Builder sells the building
within 6.0 years of the date of issue
of an Occupancy Permit or the Certificate
of Final Inspection, the Contract
of Sale must include details of the
aforementioned Inspection Report and
Insurance Policy. As well, an Insurance
Policy in the name of the Purchaser
(in the case of an auction –
subject to completion of the name
of the successful Purchaser) indemnifying
the Purchaser against all losses and
damage during the period of insurance
which result from:
i) any breach of the implied warranties;
ii) alternative accommodation, removal
and / or storage costs reasonably
associated and necessarily incurred
as a result of any event under (i);
iii) all domestic building work was
carried out in a proper and workmanlike
manner;
iv) all materials used in the domestic
building work were good and suitable
for the purpose they were used, and
unless otherwise stated, those materials
were new; and
v) all domestic building work was
carried out in accordance with all
laws and legal requirements.
vi) all domestic building work was
carried out in accordance with all
laws and legal requirements.
*Exempt
Contractors List
Pursuant to Regulation 4 of the Domestic
Building Contracts Regulations 1996,
the following works are exempt from
the requirements of registration and
Warranty Insurance under the Building
Act 1993, where they are undertaken
under a single contract only (that
is in isolation from other types of
work):
Attaching
external fixtures, Plumbing and drainage
work, Electrical work, glazing, installing
floor coverings, insulating, painting,
plastering, wall and floor tiling.
It
should be also noted that Plumbers
and Electricians are required to be
licensed under separate legislation
and are required to provide Compliance
Certificates for all work undertaken,
or over $500 for plumbing.
From 14 June 2005 new domestic ‘Owner-Builder’ laws are introduced in Victoria. An Owner-Builder is defined as a person who constructs or renovates a domestic building, on his or her own land, and who is not in the business of building.
From 14 June 2005 ‘Owner-Builders’:
· Must obtain a Certificate of Consent from the Building Practitioners Board in order to obtain a Building Permit to carry out domestic building work valued over $12,000;
· May only obtain Building Permits for a single Dwelling and associated work on a single property in any three-year period;
· Must reside and continue to reside, or intend to reside in the single Dwelling.
In order to obtain a Certificate of Consent, all Owner-Builders must contact the Building Practitioners Board, and make the relevant application. You can contact the Building Practitioners Board (Building Commission) on 9285 6400 or otherwise see their website
www.buildingcommission.com.au for more details.
Useful
Websites:
Consumer Affairs Victoria – Building
& Renovation
1300 558 181
www.consumer.vic.gov.au
Building
Commission
(03) 92856 400
www.buildingcommission.com.au
Disclaimer
The information provided regarding
the requirements for Owner Builders
are intended to be used as a guide
or interpretation only and cannot
be used for legal purposes.
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PDF OF REQUIREMENTS FOR OWNER BUILDERS
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