Owner builder vs builder

Deciding whether to employ a builder or become an owner builder for your building works is a major decision when planning your building works. The information below is provided to assist you with this decision.

Being an owner builder

Before choosing to be an owner builder it is advised that owners check the Victorian Building Authority (VBA) website. The VBA may provide you with a better understanding of what being an owner-builder involves and assist you in making your decision.

Where the value of  domestic building works carried out by an owner builder is over $16,000 (cost of works must include all material and labour at a commercial rate), an Owner Builder Certificate of Consent is required. An online application can be made on the VBA website.

Employing a builder

If you engage a person to carry out any domestic building work for which the contract price is more than $16,000, that person must ensure that the work is covered by insurance under the Domestic Building Contracts Act. The details of the insurance are required to be included on the domestic building contract by the Registered Building Practitioner. If you engage this person before the building permit is issued, you must notify the relevant building surveyor when you make the application for the building permit. If you engage this person after a building permit has been issued, you must give the relevant building surveyor written notice of the engagement within 14 days, including the building practitioner’s registration details.

If more than one trade is carried out by the same tradesperson for more than $10,000 (for example, the carpenters who construct the frame work also carries out the fit out of architraves, skirtings and doors), they will be required to be registered and enter into a major domestic building contract.

Planning permits

It is important to recognise the difference between planning permits and building permits. Building permits relate to the method of construction of a building or development, including structural, fire safety, health and amenity matters.

Planning permits relates to the land use or development of land in a planning zone and may be required in addition to a building permit. If a planning permit is required, it must be issued before the building permit can be issued. A planning permit does not remove the need to obtain a building permit.

The best way to find out whether you need a planning permit is to contact Council’s Planning Services. An application for a planning permit should include all necessary supporting information, such as plans, reports, a site analysis, etc and payment of relevant application fees.