Owner Builder Permit Conditions and Restrictions

Owner Builder Permit Restrictions and Conditions

23/1/2017

Owner Builder Permit Restrictions and Conditions

Each of the Owner Builder regulating authorities places certain restrictions and conditions on the use of an owner builder permit.

For our major owner builder student base, we are going to do a quick comparison.

However, before we consider the differences lets look at the fundamental principles of an owner builder permit that remain consistent across all of the states and territories:

An owner builder permit is available to an owner of a property or someone who has an interest in a property such as a long term lessor or a trustee where the property is held in a trust.

An owner builder permit is for the primary purpose of building, extending or renovating a domestic dwelling that the owner builder applicant intends to live in for a minimum specified period of time.

Owner builder permits are issued to a real person only and cannot be issued to an entity, they are restricted in the number of permits which may be issued to a person in a given period of time. This is to protect those registered builders and trade contractors who have significant investment in their skills, knowledge, qualifications, equipment and resources in their business.

An owner builder is not in the business of building.

An owner builder has the same responsibilities as a registered builder and is considered the Principal Contractor.

An owner builder has an absolute responsibility in respect to the Work Health and Safety issues on their site.

The owner builder is responsible for the organisation of all required inspections and certifications for their project and the retention of the associated documentation.

I think that pretty much covers the basics of the obligations and responsibilities that are consistent for owner builder across the states and territories. Lets now have a quick look at the differences:

In NSW an applicant may be issued an owner builder permit once in every 5 year period. For QLD, this is a 6 year period.
In NSW you are permitted to build a duplex, in QLD, you are not however, you may build a granny flat.
In NSW, the Department of Fair Trade issue the owner builder permits. In QLD, this is done by the Queensland Building and Construction Commission.
In NSW, you must provide evidence of having completed General Safety Induction Training (White Card) prior to being issued an owner builder permit. In QLD this is not a requirement, however WHS legislation places an obligation on a Principal Contractor to have completed the White Card, that is to say in QLD, they are not linked.
Both states have an educational component as a pre requisite to obtaining an owner builder permit. QLD has a specifically tailored single unit of competency which is heavily focused on owner builder activities. NSW has adopted the approach of selecting 5 units of competency from the CPC08 Plumbing and Construction Training Package. They are not contextualised for the owner builder and are quite generic in nature. Abacus Training has attempted to focus to the extent possible, on owner builder activities whilst still maintaining the integrity of the required skills and knowledge listed in the performance criteria for the unit.

These are the major differences between NSW and QLD, I hope this has provided a little clarity and answers the common questions that Abacus fields from our owner builder students.

As always, good luck with your project and,

Happy Owner Building.

Rick

46 Comments

Phil Minty

8/2/2017 12:03:45

I agree with the purpose of an owner builder certificate ( course ) . The owner builder course I did back in the late 80's was at TAFE with more emphasis on council requirements and the process of engaging subbies. The culture, which now includes necessary WHS has changed the focus of instruction.
I believe the WHS is required learning but more practical issues are also needed to assist in the preparation to starting a DA process.
Examples could be a list of council DA requirements , one for typical city and one for regional areas, to give a brief run down on the explaination of each requirement eg home warranty insurance which you gave insight into in one of your other blogs as confusing , this is valuable information to arm owner builders with when organising insurance.
An expansion on each of the DA items would be valuable for ownerbuilders.
I did not realise until I read this blog that as an owner builder it appears I cannot build an extension on my existing house after I complete a house on another block of land which I intend to move into and then sell my existing home with an updated extension or am I wrong?
This is the type of course information I would find most valuable instead of leaving it to the chance of a prompted blog at the end of the course. Thankyou for making this blog . I like to have my homework right before going to council . If you could give me a return email that would be good.
Regards
Phil Minty

Graeme Campbell

17/3/2017 10:23:47

I too did a previous Owner Builder course at TAFE, a little later in 2003. The content was mainly about WHS (OHS), were to get information, some legal requirements and the importance of insurance. At least, that's what stuck in my mind.

I have found this course to be very helpfl]ul in terms of codes of practice and putting together sketch drawings. I have a five acre block on a slope in Wet Sclerophyll forest and have a lot of environmental and Bush fire issues to resolve. I was wondering if anyone ran courses for people building in rural areas and or bushfire rated areas

Regards

Graeme Campbell

Luke Rickards

29/8/2017 15:57:57

Hi Graeme,

I am also in a similar predicament with bush fire zones etc. Just wondering if you received any feedback on this post? The local RFS are helpful in my area and can arrange to come out and make an independent assessment of your fire rating. The local council might also be able to offer assistance.

Cheers,

Luke

Rick Heaton link

9/5/2018 20:08:50

Hi Graeme,

I am unaware of anyone who runs a course that specifically covers the requirements of Bush Fire Planning.

It is a very interesting topic, particularly for Owner Builders.

We may include it as a webinar or video tutorial topic or ask an expert onto our upcoming interview series.

Regards,

Rick

Glenn Munro

23/6/2017 19:34:12

Your pretty much on the money Phil, you can only use an owner builder permit on one residence in a 5 or 10 year period, sorry cant remember which one it is. Someone here will know.
There is a lot of valuable info in all these posts, remembering councils all have there own little rules one needs to keep up to date with :-)

Shaun O'Regan

6/1/2018 13:56:59

Hi Phil,
A very good observation. I agree that owner builders need more assistance/preparation in making a DA. In my case, the architect placed our reno into another envelope that meant the council could be by-passed in favour of a Private Certifier. News to me but it sped up the approval process by a couple of months. Also, the council requirements are subject to change without notification. eg I want to build a wood-burning sauna in my garage. At first the council said: "OK, all you need is a $150 permit". So I started building it. However, at a later date they changed their minds and said that the sauna needs a DA. Now I have a problem in that I hope the structure will be Certified. A real problem/worry for me. Sorry to bleat on but owner builders need help with dealing with councils I think.

Regards,

Shaun

9/5/2018 07:35:31

Hi Phil,

I agree this would be much more practical and applicable to Owner Builders.

The issue is the course requirements.

NSW in particular have gone away from a tailored Owner Builder course and selected 5 units of competency from the Cert 1 in General Construction. Arguably add value in their on right, but in my opinion fail to meet the needs of the owner builder.

We try to capture a lot of this in our Owner Builder manual but it is hard to cover everything.

We will take you comments onboard and look to doing a video tutorial covering some of these aspects and areas of interest.

Thanks again,

Rick

Phil Sturges

15/5/2018 10:52:51

Whilst I can see some value in general info about the DA process, as alluded to by others here, each council has their own rules to be navigated. Not only that, they each have their own priorities and are strict or loose with certain aspects. It would be quite impossible to cover all this in a course. Having nearly completed completed this process for my new house I would suggest a couple of pieces of advice. Firstly, try to find an architect or other building professional who has experience dealing with your particular council. That experience may well help avoid coming up against road blocks your council is likely to put in your way. Second, I found having lots of friendly chats with council staff can go a long way to avoiding issues. My first chat was before we even started the planning process. Just to get an idea of what they expected and things I should avoid if I want things to go smoothly. My council is known for being notoriously difficult, but I have found all the staff very helpful and we have had no issues although it has been quite a lengthy process.

Wagner

14/11/2018 19:59:24

I thought that I had spoken too & engaged the right people to get our extension under way. We had been told the we could utilise a Private Certifier to get us through the build. This was music to my ears due to the current council in our area. We had progressed to the point of obtaining finance & then the financial institution asked for a Flood Report. This report threw up some road blocks that nobody had even put on our radar. We have been put in a Flood Storage area which completely nullified the Private Certifier. We then had to go through our council. 14 weeks later & still waiting for DA approval.
This has put the builder back & all our plans. Lucky for us that our Builder has a few jobs up his sleeve and has been super flexible.
Lesson for me. I should have spoken to the local council. Even though I can't stand the thought of it.

Lynne Flemons

30/3/2017 12:12:07

I am doing this Owner Builder Course as I am embarking on a small project at my house. It is great to have the examples and to compare these with my own journey.

Shannon Davis

2/4/2017 11:40:12

THis has been a great source of information for us with our upcoming extension. All the little things you are unaware of or not prepared for, this course brings to the forefront. Thank you

SCOTT POWERS

18/4/2017 17:05:12

Whilst only being part way through the course, I have found it to be so helpful and has already assisted me in interpreting the plans we have received from our draftsperson. It has aided me in raising questions and ensuring the plans are exactly what we are after before proceeding to the final stage of accepting plans & submitting for final CDC approval. It's supported me in navigating a few questions and responses that I would not have otherwise thought of.

Patricia Moss

25/4/2017 21:56:30

I am in the process of doing the owner builder course and it has already been of great benefit to the planning of my new home. The modules have been to the point as well as practical and useful and have raised issues for me to address that I wouldn't have thought of til it became an issue on site.

Colleen Franklin

28/4/2017 12:02:28

This course has be great learning tool in my quest to build my dream home. I have learnt so much and it will definitely improve the end product. Thank you

Nerida

12/5/2017 12:27:33

I have found this course to be very helpful in planning our renovations, as I now have a much more in depth knowledge of how to read plans.

gary kennedy

16/5/2017 13:34:11

I have found the course to be really thorough and have gained a lot of knowledge as a result. I aim to use the knowledge to the best of my ability when overseeing the construction of our new house.

stuart cornwell

16/5/2017 21:59:30

wow! so much information to take in. not coming from a construction trade i never put too much thought into what goes on behind the scenes. especially in regards to safety

Jeremy Simpson

24/5/2017 20:08:42

Thanks so much for providing a great course! Having a trade background helped but I certainly learnt a thing or two!

Siyu Tang

28/5/2017 22:42:10

Just finished my last unit in the owner builder course. There is so much information to be taken in. But it is very informative and well laid out. I will use the information to the best of my ability when I oversees the construction of my veranda and possibly my granny flat in QLD.

Gabriela Brun

31/5/2017 13:28:39

Just on the issue of the owner builder having the intention to live in the house for a specified period of time, I have checked the NSW Fair Trading website and there is no mention of that requirement.

It only states: 'Should an owner-builder or a successor in title to that person decide to sell their home within 7 years and 6 months after an owner-builder permit was issued, the contract for sale must include a note (a consumer warning) stating that: an owner-builder permit was issued in relation to the land on the date it was issued.'
This implies that you CAN sell the property within the time period.

I am interested to know if there is this specific requirement in any legislation in NSW and, if so, how does it work if you are building a secondary dwelling in your backyard as an owner builder?

Marc Capon

17/10/2017 16:41:09

I looked extensively for clarity on this matter too. I found nothing to say that you could NOT sell but you had to but the note/warning as you correctly said.

Now I have embarked on my project, and there is no turning back, which is a large house renovation and garden works which include tiered retaining walls, I was a bit worried about the implications of an owner - builder permit being a deterrent to potential buyers. Are my concerns unfounded? am I worrying about nothing? as otherwise it ties me/other owner builders to a property for 7yrs 6months. I was planning on moving in 5yrs.

Thoughts?

Graham jones link

15/6/2017 17:00:39

I am building one villa (under a staged development da)for myself but there are 2 other units on the da that may get built later or may never be built .has anyone had experience with permits being granted in this situation nsw

10/8/2017 19:38:14

HI Graham,

This is certainly one for your certifiers.
It is tricky and will possibly come down to an individual determination/interpretation.
Rick

26/6/2017 19:30:33

Just completed my last unit and I have been amazed at how formative and interesting the course has been. Even spending 20 years in the building industry, there is plenty here to learn and understand. Great work Rick, this is one of the best E learning sites I have seen.

Bede Cunneen

11/8/2017 14:46:25

Have just completed my last unit for NSW owner builder course and have found the course to be of great value and very informative.

Ralph Moran link

4/9/2017 18:20:23

This is an informative post. Thanks for providing the comparison. Much appreciated.

Graham Cairns

13/9/2017 11:21:26

As someone that has held an owner builders licence over 15 years ago it is very interesting to now see the difference in education requirements that are in place today.
Previously it was just an application lodged with no need for any education into specifics of building requirements. I have found this change quite enjoyable as I have now gained an understanding of many more aspects involved with being an owner/builder and building requirements in general.

Yasmina Kovacevic

13/9/2017 14:36:37

Hi, this course has been invaluable. I was incorrectly advised by a friend that the course is 'quick' and simple, no longer than a day(!!). I can see that they must have completed the course many decades ago prior to the nay legislative changes regarding WHS.

I am about to commence building a mixed use dwelling and the information is excellent. I will be participating in every step but will use the many templates provided to better communicate with all involved in the construction process.

steve

19/9/2017 16:56:44

I believe in nsw. I can only obtain an owner builder permit for one project within a 5 yr. timeframe.
is it possible of another person who shares ownership of that renovated property to obtain another owner builder permit within less than the 5 yr exclusion time?

19/9/2017 19:30:49

Steve,
It depends on the jursdiction.
In QLD it is an absolute that all parties on the title are excluded.
This is certainly the intent in NSW, however I understand they have relaxed this and it may be possible for a permit to be issued to a person even though they appear on the title of a property subject to a recent owner builder permit.
My best advice is to seek guidance from the relevant governing authority.

Jayme Smith

23/10/2017 11:11:34

i have found the comments made thought this post both informative and eye opening as to the validity and sufficiency of the training.

Andrew Kramers

5/12/2017 22:29:04

I appreciated the holistic scope of the course including estimating and project management.

Have recently been looking at the State Environmental Planning policy 2008 for exempt development. There is an overriding condition that works must be in accordance with the relevant "deemed to satisfy" clauses of the the BCA. The majority of exempt development revolves around replacement and repairs - does this mean that the repair would need to comply with the latest version of the BCA?

Tiffany Locke link

24/1/2018 11:16:54

I'm glad that you mention how the owner builder is responsible for all of the organisation's require inspections and certifications of the project. Since this is the case, they'd probably want to make sure they understand what is necessary and find the right certifier for it. In order to find the right certifier, they'd probably want to consider what inspections and certifications they require and then look online at the different professional who offers those services in order to make sure they'll be able to get one that can talk to them about any problems and ensure everything's done correctly.

Sara

21/2/2018 20:10:34

I have found it to be really important to have a strong relationship with a good builder who can help advise what direction to take for getting the certificates and inspections done as smoothly as possible. I have been very lucky to have access to this

MFJ

26/2/2018 14:36:03

I have built an extension and a granny flat under owner builder permit. However, construction has been carried out by a licensed builder. Once i have the OC under CDC can i rent the granny flat while occupying the extension myself.

MLS

21/3/2018 15:04:27

Having grown up with a builder dad, I thought I knew a lot about requirements and techniques but this course has certainly taught me a few things. I might have also taught my father a few things.

I will be using my owner builder permit to construct a detached garage and it's great to be able to do this myself (although I'm sure Dad will add his two cents' worth!)

George Markoski

14/4/2018 16:02:45

My wife and I are in the planning stage of building a new home. This course has better equipped us with the knowledge and tools for the build ahead.

14/4/2018 17:05:31

The block of land has 3 very large trees at the back of the property, do you have any advice on how to approach council so we can get the trees removed. There right were we planning on building our pool and need them removed.

Granny Flats link

18/4/2018 14:17:33

Thanks for posting these. It is so important for everyone to know about getting permits before building a granny flats or something. Thanks again for sharing these!

Dean Houlton

30/4/2018 20:06:52

This information from this topic of Owner Builder Permits Restoration and Conditions is very informative and a good learning module.

Julina Gibbs

3/7/2018 13:14:50

I am building a house and shed on my block of land. Does the owner builder permit cover both if they have been approved under two approvals?

14/11/2018 20:21:05

I would have liked to have done this coarse earlier in the process of our extension. It feels like we have done things back to front.
I spoke to a friends that had recently completed a fantastic renovation. They put me in contact with their builder. A Family friend of theirs. He came around and had a look at our house & the concept sketches I had done. He was a keeper. He pointed us in the direction of a design draftsman. He was great too & turned our concept drawings around really quickly. They were quality drawings also. I asked around a few tradies that I know & they had nothing but good things to say about our builder.
Time to get the ball rolling right. Private Certifiers engaged. Tick. Finance approval. Yep. Just need a Flood Certificate. OK. Thats when things started to slow down. Flood Certificate put us in a Flood Storage Area according to the latest studies by our local council. WHAT??? This shut down the Private Certifier. Hand Brakes ON since then. 14 weeks and counting with the council waiting for DA approval. Builder has been super. He has shuffled his schedule around & will fit us in when we get things sorted with council.
Disappointed that we didn't see this coming especially after all of the questioning of different people that I thought would be in the know.
We are better off than the guys down the road though. He had started his extension after being advised that he could use a Private Certifier only to be placed in the Flood Storage Area also. They are super frustrated considering that he has had to come up with alternative accommodation which is another added cost to the project.

rick link

27/4/2019 13:28:49

Hi Wagner,

Yes, education is certainly key.
It sometimes is back the front as you say.
People not intimately involved in the industry often don't know what they don't know.
We always hope to provide as much information and steer out students/clients the in the right direction.

5 Star Builders link

28/1/2019 21:29:45

This is a really good read for me. Must admit that you are one of the best bloggers I have ever read. Thanks for posting this informative article.

Anthony Shalala link

25/4/2019 19:19:40

Thanks for having this article, it helps a lot. It’s a well-written blog and it is very informative. Keep on blogging, looking forward to see more of your posts!

Adam

12/5/2021 21:54:33

Hi there,

I am looking to undertake the NSW owner builder course, but wanted to first enquire on whether or not an owner builder licence will allow me to build apartments/units?

If yes, is there a limit as to how many apartment levels I can build holding an owner builder licence?

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