1.0 RESPONSIBILITIES OF AN OWNER BUILDER
When you first decide to undertake a project as an owner-builder, you will need to gather a considerable amount of information.
Owner Builder NSW Banner
In real terms your responsibility as an owner-builder can be broken down into three distinct areas.
taxation, insurances, site safety etc.
Your responsibility to yourself
This may appear obvious, but it is worth mentioning anyway:
Having said this, if you remain organised and focused, commit the time and effort, the rewards can be great and the satisfaction immeasurable.
Your Responsibility to the Workers on Your Site
As an Owner-Builder, you are the Principal Contractor, Primary Contractor, PCBU or responsible builder.
Along with these lofty titles comes some reasonably onerous obligations.
You are solely and totally responsible for providing and ensuring a safe and healthy working environment.
Is it OHS or WHS in NSW?
In NSW this legislation is the NSW Work Health and Safety Act 2011 (WHS Act). The legislative reforms also include harmonised Regulation (WHS Regulation) and Codes of Practice.
The text of this study guide is designed to give individuals an understanding of and an insight into the types of hazards which are likely to be found on a construction site.
YOU MUST ENSURE THE REQUIREMENTS OF THE NSW OCCUPATIONAL HEALTH AND SAFETY ACT ARE COMPLIED WITH IN RESPECT ALL ACTIVITIES ON YOUR SITE.
YOU MUST OBTAIN YOUR WHITE CARD
Further information in respect Health and safety issues for the construction industry can be obtained by visiting the following websites.
www.safework.nsw.gov.au/
These sites provide access to the Acts, Regulations and Codes of Conduct for construction work within New South Wales.
The two diagrams which follow, will assist you in planning your project and recognising areas of responsibility you will need to be aware of throughout the project.
These are identified as;
Lets now look at the specific responsibilities of an owner- builder as detailed on the Services NSW website.
These will all be discussed in detail in the following sections of this text.
- Your responsibility to yourself
- Your responsibility to the workers on your site
- Your responsibility to the community
taxation, insurances, site safety etc.
Your responsibility to yourself
This may appear obvious, but it is worth mentioning anyway:
- You have a responsibility to yourself and your family or partners to ensure that your hard earned dollars are used in the most effective way possible; and
- It is necessary to ensure your lifestyle, both personal and professional are not adversely affected through the performance of your functions as an Owner-Builder.
Having said this, if you remain organised and focused, commit the time and effort, the rewards can be great and the satisfaction immeasurable.
Your Responsibility to the Workers on Your Site
As an Owner-Builder, you are the Principal Contractor, Primary Contractor, PCBU or responsible builder.
Along with these lofty titles comes some reasonably onerous obligations.
You are solely and totally responsible for providing and ensuring a safe and healthy working environment.
Is it OHS or WHS in NSW?
In NSW this legislation is the NSW Work Health and Safety Act 2011 (WHS Act). The legislative reforms also include harmonised Regulation (WHS Regulation) and Codes of Practice.
The text of this study guide is designed to give individuals an understanding of and an insight into the types of hazards which are likely to be found on a construction site.
YOU MUST ENSURE THE REQUIREMENTS OF THE NSW OCCUPATIONAL HEALTH AND SAFETY ACT ARE COMPLIED WITH IN RESPECT ALL ACTIVITIES ON YOUR SITE.
YOU MUST OBTAIN YOUR WHITE CARD
Further information in respect Health and safety issues for the construction industry can be obtained by visiting the following websites.
www.safework.nsw.gov.au/
These sites provide access to the Acts, Regulations and Codes of Conduct for construction work within New South Wales.
The two diagrams which follow, will assist you in planning your project and recognising areas of responsibility you will need to be aware of throughout the project.
These are identified as;
- Figure: 1.4.3(1) Planning Flow Chart and Responsibilities
- Figure: 1.4.3(2) Preliminary Checklist
Lets now look at the specific responsibilities of an owner- builder as detailed on the Services NSW website.
- Overseeing and supervising all tradespeople
- Ordering and delivering of all materials, and the management of the building site
- Obtaining all necessary Council and Authority approvals for the work
- Ensuring that the financial, taxation and insurance requirements of the building works are met, and fully compliant with all laws
- Providing a safe working environment
- Ensuring any contractor engaged is appropriately licensed to do the work contracted for.
These will all be discussed in detail in the following sections of this text.
NSW Owner Builder Sequence Flow Chart
Figure 1.4.3(2)
NSW Owner Builder Flow Chart 2
NSW Owner Builder Flow Chart 3
1.1 OVERSEEING & SUPERVISING ALL TRADES PEOPLE
Initially, it will be necessary for you to select your trades people and suppliers.
To get a start, it is best to call on personal friends and contacts who either have the required skills and or qualifications or talk to people who have recently completed renovations or construction projects of their own.
Other methods of finding appropriate trades people or suppliers are:
- Google Search
- Local Newspaper Classifieds
- Professional Associations
- Referrals
- Advertising, Sites Signs etc.
Once the site is established and the works have commenced, you will be responsible for supervising and coordinating the activities and tasks undertaken on site including the works performed by your contractors.
The amount of involvement you have and the time taken will make the difference between a successful project which runs on time and on budget and one which has costly overruns in both these critical areas.
Sound, accurate documentation and good interpersonal skills on site are essential in keeping the project 'on track'.
As the Owner-Builder you will need to visit the site regularly to inspect the quality and progress of works relative to the established schedule.
You will need to coordinate and manage the project to ensure all works are completed to a satisfactory standard, and as necessary engage appropriately qualified consultants to 'sign off' on the works.
Remember certain stages of the work or specific structural elements will require inspection and certification.
It is important to ensure these inspections are included in the works schedule and conducted in a timely manner to minimise any delays to the works
1.2 ORDERING & DELIVERING MATERIALS
Section 4.15 and 4.16 plus the 4.14 (Heath and Safety) discuss ordering, payment, processing, handling and storage of materials on site.
1.3 OBTAINING ALL NECASSARY COUNCIL APPROVALS
Council Approvals
- In section 4.3 of this manual, we looked at how to get an owner-builder permit, and the information you will be required to provide to the Office of Fair Trading.
We have included a brief glossary of terms which will assist you in understanding the acronyms, jargon and technical wording found in the various forms, applications, consents and guides utilized during the planning and approval process.
Glossary of Terms
- National Construction Code https://ncc.abcb.gov.au/
A uniform set of technical provisions for the design and construction of buildings throughout Australia.
- Complying Development Certificate
A certificate which allows a complying development to be carried out.
- Development Application (DA)
An application for consent to carry out local development but does not include an application for a complying development certificate.
- Development Consent
Consent to carry out local development.
- Development Control Plan (DCP)
Detailed guideline that illustrates the types of controls that apply to a particular type of development or development in a particular area. A DCP refines or supplements a regional environmental plan or local environmental plan and is made according to the Environmental Planning and Assessment Act 1979.
- Local Environmental Plan (LEP)
The principal legal document for controlling development at the council level. The zoning provisions establish permissibility of uses and standards regulate the extent of development. They are prepared by councils and approved by the Minister (after public exhibition).
For example, the LEP which applies to the Sutherland Shire is called the Sutherland Shire Local Environmental Plan 2000.
- Principal Certifying Authority (PCA)
A council or private accredited certifier that oversees the building process.
- Zoning
The system of categorising land uses as prohibited, requiring consent or not requiring consent within particular areas. Zones (such as residential or commercial) are detailed in plan form and explained in environmental plans.
An overview of the Development Approval Process
The Flow Chart may be a little out of date, however it is still one of the best descriptions of the process that we have seen so it is retained for owner builder information
NSW Development Approval Process Flow
What is a Development Application?
A Development Application or DA is a formal request for permission to carry out proposed development.
Development is legally defined as:
- The erection, including alteration in whole or part, of a building
- Work in, on, over or under land;
- The use of land or a building;
- The subdivision of land; or
- The strata subdivision of a building.
Do I need to make a DA?
You will probably need to make a Development Application if you propose to do any of the following:
- Erect a new building or structure including, outbuildings, swimming pools, retaining walls etc;
- Add to or alter an existing building;
- Demolish a building;
- Demolish or alter a building or place that is a heritage item or that is within a Heritage Conservation Area;
- Change the use of an existing building or premises to another use;
- Subdivide land or strata subdivide a building;
- Display or erect an advertising sign
- Carry out earthworks, excavation or filling.
Your local council will generally have a Local Environmental Plan which will detail minor permissible development that does not require consent.
As a guide, this type of development is basically split into two categories:
- Exempt Development; and
- Complying Development
Exempt Development is minor or small scale development that will have minimal environmental impact and therefore does not need a development consent. Exempt developments will generally be defined in the Local Environmental Plan for each council. They will be accompanied by a set of standards that the development must meet in order to be carried out as exempt. Exempt development is the type of development which would have previously not required a building approval.
Examples of exempt development (residential) include:
- Awnings
- Decks and Patios
- Pergolas
- Retaining Walls
Complying Development is also development which is routine in nature that, providing it complies with the standards contained or listed in the councils Local Environmental Plan, a Complying Development Certificate is all that is needed to carry out the proposal. Complying Development Certificates have the same value as a Development Consent, but they certify that the development proposal complies with all the preset standards. Council or an Accredited Certifier can issue a Complying Development Certificate.
Examples of complying developments (residential) include:
- Cubby Houses
- Fences
- Garages
What is a Private Accredited Certifier?
An Accredited Certifier is a professional person accredited by an Accreditation Board approved by the Government.
An Accredited Certifier will only be accredited if they meet high quality standards and hold appropriate insurances.
An Accredited Certifier may be used by both an applicant and council to confirm or check compliance with predetermined standards.
They will be able to certify whether applications for complying development conform to the standards set by council.
They will also be able to certify that a building has been inspected and construction meets all appropriate standards such as the National Construction Code.
Council Policies
It is important to gain a sound understanding of how your particular council determines their specific requirements in respect to developments.
Before you start designing or planning your project it would be wise to call your local council and discuss specific requirements in respect:
- Environmental Planning Legislation;
- Local Environmental Planning;
- Development Control Plans; and
- Relevant council policies.
Generally councils have trained customer service staff who can provide the necessary and relevant information.
In addition, some councils will be happy to schedule a Pre-Application Discussion.
Where this occurs, it will most likely take place at council offices, be informal and have a council environmental assessment officer present.
A written record of the meeting should be kept.
Do I need approval from any other Authorities?
It is the owner-builders responsibility to identify all other authorities who have approval requirement in respect of their development.
Under the planning laws, you must indicate on your application whether you require approval from another government agency or authority which is additional to your development consent.
If your proposal does require another approval it is generally dealt with as an “integrated development”
Council will refer such applications to the relevant agency to obtain their ‘general terms of approval’.
These requirements will then be incorporated into the conditions of any development consent issued by the council.
The following table details some of the other agencies which may be involved and the relevant Acts that may affect your proposal.
How do I lodge my completed application?
It is usually best to lodge your application personally, that way council staff will run through a checklist to ensure all the necessary documentation is included.
This will help prevent unnecessary delays due to an incomplete application being lodged.
The documentation you will need to present will include:
Fees for the approval are usually based on the estimated cost of development and, the Building Industry Long Service Levy is payable if the building work value exceeds $25,000.00
As an owner-builder you are responsible for ensuring the scope of works undertaken are compliant in the following areas:
and the works associated and identified by the DA or the Complying Development Number.
The installation of these services is governed by the relative statutes, standards and regulations, the use of appropriately licenced tradespeople will help in ensuring each of these requirements and regulations are fully satisfied.
Compliance Inspections
For the construction of an entire home, the following building inspections are compulsory under the Integrated Planning Act 1997 and must be carried out by either a Building Certifier or a competent person authorized by the Building Certifier:
For the construction of an entire home, the following plumbing inspections are compulsory under the Metropolitan Water Supply and Sewage Act 1909. These can only be carried out by your Local Government Plumbing Inspector.
Generally, the Building Certifier will need at least one or two days notice prior to the time when the inspection is to be carried out.
You will also have to provide copies of the following certificates to the Building Certifier, where relevant to your project:
This manual contains information either directly or indirectly through included text and or links to fact sheets or standard forms.
In the early stages, the best source of information will be the New South Wales Department of Fair Trading website and your Local Council or nominated Private Certifier.
To get you started, we have taken much of the content of the owner-builder application form and provided further detail on how to access, compile and complete the required information.
The form is included as a .pdf file which you can recall, print off and work through following our guidelines.
Owner-builders Responsibility as stated on the Department of Fair Trading Website
It is usually best to lodge your application personally, that way council staff will run through a checklist to ensure all the necessary documentation is included.
This will help prevent unnecessary delays due to an incomplete application being lodged.
The documentation you will need to present will include:
- All required plans and supporting documentations such as specifications etc;
- Proof of landowner consent;
- A signed application form;
- Pay the development application fees; and
- Pay the building industry Long Service Levy (claim your 50% rebate)
Fees for the approval are usually based on the estimated cost of development and, the Building Industry Long Service Levy is payable if the building work value exceeds $25,000.00
As an owner-builder you are responsible for ensuring the scope of works undertaken are compliant in the following areas:
- The owner-builder permit is specific in respect the project and site to which it is issued.
and the works associated and identified by the DA or the Complying Development Number.
- You may not undertake any specialist works such as plumbing or electrical unless you hold licences to cover such works.
The installation of these services is governed by the relative statutes, standards and regulations, the use of appropriately licenced tradespeople will help in ensuring each of these requirements and regulations are fully satisfied.
Compliance Inspections
For the construction of an entire home, the following building inspections are compulsory under the Integrated Planning Act 1997 and must be carried out by either a Building Certifier or a competent person authorized by the Building Certifier:
- Footings
- Slab-on-ground
- Frame (i.e. ready for roof)
- House Final
For the construction of an entire home, the following plumbing inspections are compulsory under the Metropolitan Water Supply and Sewage Act 1909. These can only be carried out by your Local Government Plumbing Inspector.
- Drainage – under slab
- Plumbing rough-in
- Drain test
- Plumbing final
Generally, the Building Certifier will need at least one or two days notice prior to the time when the inspection is to be carried out.
You will also have to provide copies of the following certificates to the Building Certifier, where relevant to your project:
- Wet seal – for tiled showers
- Glass – for windows and sliding glass doors
- Termite management system
- Roof trusses
- Any engineers certificates
- Energy rating
This manual contains information either directly or indirectly through included text and or links to fact sheets or standard forms.
In the early stages, the best source of information will be the New South Wales Department of Fair Trading website and your Local Council or nominated Private Certifier.
To get you started, we have taken much of the content of the owner-builder application form and provided further detail on how to access, compile and complete the required information.
The form is included as a .pdf file which you can recall, print off and work through following our guidelines.
Owner-builders Responsibility as stated on the Department of Fair Trading Website
 NSW Owner Builder Mitre Saw |
Under the Home Building Act 1989, you are required to obtain an Owner-builders Permit if you wish to perform building works to a value of $10,000.00 or more on your own property.
If the value of the works exceeds or is equal to $20,000.00 you must complete an approved owner-builder course. The value of building works must be determined by calculating the cost of all materials and the cost of a licensed contractor to complete the works under a commercial agreement (contract), including GST. |
There are penalties for falsely stating the value of works, and you may be excluded from obtaining another permit for 5 years.
Additionally, you would not be permitted to undertake the works included on the associated owner-builder Permit.
Following are extracts taken directly from the Department of Fair Trading website which outlines your requirements as an owner-builder.
It is an old extract, and it should be viewed with some caution, however the general content is a good reference.
Additionally, you would not be permitted to undertake the works included on the associated owner-builder Permit.
Following are extracts taken directly from the Department of Fair Trading website which outlines your requirements as an owner-builder.
It is an old extract, and it should be viewed with some caution, however the general content is a good reference.
Owner Builder NSW Responsibilities
What works can Owner Builders carry out?
 Owner Builder Timber Framing Codes |
Domestic building works are the only type of works permitted under an owner-builder permit.
You cannot carry out works on a multiple dwelling (other than a dual occupancy) or on any building intended for commercial or industrial use. You can however carry out works on an existing unit, these works are limited to, repair, renovation, alteration, extension or improvement. |
What works can I conduct my self?
 NSW Owner builder - Electrical Works |
You cannot personally carry out any building works which involve, plumbing, drainage, gasfitting, electrical, termite management or waterproofing, asbestos removal or scaffolding unless you hold the appropriate occupational or trade contractors license.
These works must be carried out and certified by appropriately licensed trade contractors. Additionally, the Department provides details on certain limitations that affect the issue of an owner-builder permit. |
The following extract from the Department of Fair Trading website outlines:
NSW Owner Builder Restrictions
How often can I get an Owner-builders Permit?
You cannot obtain another permit within five years from the date of issue of a previous permit unless the Department of Fair Trading is satisfied there are special circumstances, and an exemption has been approved. (see above)
How do I get a Permit?
To apply for an owner-builders permit you must apply at a Fair Trading Centre, complete an application form, pay a fee and provide specific information.
The following extract from the Department of Fair Trading website outlines the process:
You cannot obtain another permit within five years from the date of issue of a previous permit unless the Department of Fair Trading is satisfied there are special circumstances, and an exemption has been approved. (see above)
How do I get a Permit?
To apply for an owner-builders permit you must apply at a Fair Trading Centre, complete an application form, pay a fee and provide specific information.
The following extract from the Department of Fair Trading website outlines the process:
Let’s now look at the Application and step through the contents:
Application for Owner Builders Permit
NSW Owner Builder Application Form February 2024
1.4.1 APPLICATION DETAILS
This section of the application form requires you to enter the requested details of all persons listed on the title.
The nominated Permit Holder will be the one required to complete the course of instruction where the value of works is $20,000.00 or more.
All persons on the title are prohibited from taking out another permit for a period of 5 years.
The applicant’s details are to include:
- Surname and given name of the person making the application
- Date of Birth
- Gender
- Postal Address
- Phone contact details
Note: The applicant must be over 18 years of age and must be the owner of the property.
1.4.2 SUPPORTING DOCUMENTATION
You must provide attached to the application, the following certified copies of the following documents:
- Proof of legal ownership, rates notice, land title or similar
- Copy of the plans submitted to council or private certifier to obtain a Construction Certificate.
Note: This process is undertaken before the owner-builder permit is applied for and is part of the development application process. For more details on this process see the included flow chart on page ... of this manual)
- Where the property is owned by a company, proof of the individual shareholding is required. You should discuss these requirements with your local Fair Trading Centre.
- Evidenc of completion of approved course means a certified copy of the awarded certificate and the associated course providers approval/accrediatation number if applicable.
NSW Owner Builder Supporting Documents
1.4.3 APPLICATION FEE
The prescribed fee can be calculated from information provided on the Fair Trading website, at the time of publication of this manual the fee was $143.00 for new applications.
This included a processing fee of $55.00.
A warning is included that an unspecified portion of the fee payable is retained if the application is unsuccessful.
Owner Builder Application Fees - valid and correct 16th February 2024
1.4.4 DETAILS OF BUILDING WORK
In this section, the applicant is required to provide details of the real property description and a brief statement of the building works. An example would be:
“The building works at the above address are of a single storey domestic dwelling of 350 square meters.
The construction is brick veneer with aluminium framed doors and windows and several feature panels of timber cladding.
The roof covering is concrete tiles.”
Additionally you are required in this section to provide evidence of development application and consent together with the Construction certificate number that has been issued against these works.
A statement of the value of the proposed works is required (remember, this is based on a fair market value, similar to the price you would expect to pay if you contracted a builder to complete the works)
You must state that you intend to live in the premises once completed and indicate if you have been issued an owner-builder permit against this or any other property in the preceding 5 years.
Owner Builder Application 2024 - Description of Works
1.4.5 APPLICATION DECLARATION
Owner Builder Application 2024 - Declaration
Section 11 of the application require you as the applicant to make a declaration that:
a) You understand your responsibilities as an owner-builder and the restriction which are imposed upon owner-builder works/permits
b) You understand your obligations in respect to the sale of a property upon which owner-builder works were undertaken, including home warranty insurance
c) States the penalty which may be imposed for making a false declaration
Further, the declaration authorises the Office of Fair Trading to make enquiries and search records to establish and verify the information provided in the application.
a) You understand your responsibilities as an owner-builder and the restriction which are imposed upon owner-builder works/permits
b) You understand your obligations in respect to the sale of a property upon which owner-builder works were undertaken, including home warranty insurance
c) States the penalty which may be imposed for making a false declaration
Further, the declaration authorises the Office of Fair Trading to make enquiries and search records to establish and verify the information provided in the application.
1.4.7 CUSTOMER FLOW CHART
This Flow Chart details the process that will be typically followed from submission of application to issuance of the permit or rejection of the application.
The refund and notification schedules are also included.
1.4.8 APPROVAL PROCESS
What's a “Development Application”?
A Development Application (DA) is a formal request for permission to carry out proposed development.
Development is legally defined as:
- the erection, including alteration in whole or part, of a building;
- work in, on, over, or under land;
- the use of land or of a building;
- the subdivision of land; or
- the strata subdivision of a building.
Do I need to make a DA?
You need to make a development application if you propose to do any of the following:
erect a new building or structure, including outbuildings, swimming pools, retaining walls, etc;
- add to, or alter, an existing building;
- demolish a building;
- demolish, or alter a building or place that is a heritage item or that is within a Heritage Conservation Area;
- change the use of an existing building or premises to another use;
- subdivide land or strata subdivide a building;
- display or erect an advertising sign;
- carry out earthworks, excavation or filling.
Some minor permissible development do not require development consent.
These forms of development are basically split into two categories:
- Exempt Development; and
- Complying Development.
Exempt Development
is minor or small-scale development that will have minimal environmental impact and therefore does not need a development consent.
Exempt development is identified in our Local Environmental Plan using a description of a development and a set of standards that the development must meet in order to be carried out as exempt.
Exempt development is the sort of development that previously would not have needed a building approval.
Complying Development
is also development that is so routine in nature that, providing it complies with the standards contained or listed in Local Environmental Plans, a Complying Development Certificate is all that is needed to carry out the proposal.
Complying Development Certificates have the same value as a Development Consent, but they certify that the development proposal complies with all the pre-set standards. Council or an Accredited Certifier can issue a Complying Development Certificate.
More detailed information is generally included on Council websites.
Sometimes it is not clear whether something requires a Development Application.
It is always best to check with your Local Council or with your Private Certifier before proceeding.
To make a development application, you need to follow the five steps:
Approval of the building documents (plans, specifications etc) must be obtained through a private certifier or local government (council) before any building works are commenced. (this includes earthworks and excavation)
Approvals are required at various stages throughout the construction process, including completion.
A complete list of required certifications, inspections and approvals, are provided in section 5.9 of the Owner Builder Learner Guide manual.
It is the responsibility of the owner-builder to ensure that all works are performed and constructed in accordance with the approved documents.
If it becomes necessary to change, alter or amend the design, it is the responsibility of the owner-builder to consult with the certifier to determine whether the approved documents require amending prior to making any changes in the construction.
 Owner Builder Planning and Development Applications |
Whilst the information is correct at the
time of publication, change is constant in this area and we advise anyone considering any form of development, familiarise themselves with the latest requirements. NSW Planning provide a very good guide for anyone thinking about lodging a DA to access it click the link below: DA Planning Guide or by following the link provided below: https://www.planning.nsw.gov.au/assess-and-regulate/development-assessment/your-guide-to-the-da-process |
Note: To access the link directly from this document, hold down the control key CTRL, move the mouse over the link and click on the link.
Most local councils include information about the approval process on their website and generally include downloadable application forms, fact sheets and guides.
The steps that are typically required in the application process are provided below.
Most local councils include information about the approval process on their website and generally include downloadable application forms, fact sheets and guides.
The steps that are typically required in the application process are provided below.
