Owner Builder Requirements Northern Territory
Applicable Legislation • Building Act 1993
• Building Amendment Act 2004
• Building Amendment Act 2005
The Northern Territory Government produces a detailed Owner Builder Manual which is mandatory reading for anyone considering undertaking an
Owner Builder project.
This booklet provides valuable information on Owner Builder obligations, how to comply with relevant legislation and how the application process works.
The booklet highlights information on the following
Owner Builder topics:
• Introduction to the Manual
• Funding the Owner Builder Project
• Owner Builder Certificate
• Applying for the Owner Builder Certificate
• Preparing to Start Building Work
• Insurance
• Carrying out Building Work
• Completion of Building Work
• Relevant Building Legislation
• Useful Contacts
• Owner Builder Declaration
Title Requirements and Permit Restrictions The Owner Builder Manual as produced by the Northern Territory Government provides the following description:
Who is eligible for an Owner Builders Certificate? To be eligible for an
Owner Builders Certificate you must:
• be an individual
• be a title holder of the land on which the residential building work is to occur;- should there be more than one titleholder, all names must appear on the owner builder certificate;
• not have entered into an agreement to transfer ownership of the land to another person
On 21 December, 2004, the Northern Territory Building Act was amended to include provisions which would provide greater protection for consumers, building contractors and genuine owner builders.
Genuine Owner Builders are not in the business of building and are limited to building on one block of land in a six year period.
return to owner builder online store Occupational Health and Safety Obligations In short, Owner Builders are responsible for ensuring that building work under their control is carried out in a manner that does not cause:
• Risk to public health
• Danger to the public
• Nuisance to the adjoining Owner
• Damage to the infrastructure
As the Owner Builder, you take on the role of the accountable person in respect to the safe conduct of all works associated with your site.
This means that you are responsible for not only the safety of all persons on site or adjacent areas, but also for the actions of the contracted workers or visitors to your site.
Careful planning, preparation and education are the best tools an Owner Builder can employ to ensure the safety of the site and those individuals who might attend site either as a visitor or as an engaged worker.
Owner Building Solutions Australia has developed specific management tools, checklists and registers that make this process simple.
The Work Health (Occupational Health and Safety) Regulations Part II, Construction Work should be referred to in respect the accountable persons responsibilities on a building site.
Contract Requirements A contract written between an Owner Builder and a contractor or supplier is a legal document which must include specific information relevant to the project and to the works which are included.
In the Northern Territory the provisions of section 48B of the Building Act requires you to have a signed contract for al domestic building work costing $12,000 or more.
The contract should be written in “plain English” as to avoid confusion, misunderstanding or leave area open to individual interpretation.
Standard formats have been developed to provide easily accessible documentation for Owner Builder use.
Before using or completing any contract with a tradesperson, contractor or supplier, make certain the following is included:
• The names of the parties, including the name of the holder of the contractor license if applicable
• The number of the contractor license if applicable
• Sufficient description of the works to which the contract relates
• Reference and description (titles, drawing numbers etc) of associated plans and specifications
• Contract price (if known) including GST
• Statutory warranties applicable to the work
• Business names and ABN’s as applicable
• Cooling off period if any
• Progress payment schedule or payment terms
• Deposits to be paid if any
• Variations process
• Defect Liability Period
Specifically, section 48B states the following mandatory inclusion in any written building contract:
• The name of the builder (or contractor) and their registration or license number
• Any deposits to be a maximum of 5%
• Work stages and amounts for progress payments
• The full extent of the works
• A dispute management process
return to owner builder online store Insurance and Finance
Owner Builders must ensure their property and the construction is adequately and appropriately covered during the construction phase of the project.
In the Northern Territory, the Home Building Certification Fund (HBCF) Owner Builder Insurance is the mandatory insurance cover required under the Building Act.
It is obtained through the Territory Insurance Office.
This insurance policy must relate only to the building work to be carried out under the Owner Builder Certificate as a discreet project and provide cover to future owners of the home for the rectification of any non compliant building work for a period of 10 years from the completion of the building.
This policy becomes active after the occupancy permit has been issued.
The Owner Builder will not personally be able to make a claim on this insurance policy.
Other Insurances that should be considered by the Owner Builder include:
• General Insurance
• Workers Compensation
• Construction Insurance
• Key Person Insurance
• Loan or Mortgage Insurance
As a minimum, we recommend the following insurances:
* Construction Insurance
* Public Liability
* Householder Insurance