Owner Builder Requirements South Australia
Applicable Legislation

•    Development Act 1993
•    Building Work Contractors Act and Regulations (as amended)
•    Building Code of Australia (BCA)
•    Workplace Health and Safety Regulations 1998
•    Environmental Protection Act 1993

The Government of South Australia produces a booklet which details Owner Builder responsibilities under the Development Act 1993 and is available from the Department of Primary Industries and Resources SA.

This booklet provides valuable information on Owner Builder obligations, how to comply with relevant legislation and how the application process works.

The booklet highlights the following Owner Builder responsibilities:

•    Obtaining a Development Approval
•    Lodgment of all copies of certificates of indemnity insurances for all work to be undertaken by a licensed building work contractor with
     council before commencing that stage of the building work
•    Notification of adjoining owners of an intention to perform building work that may affect that property
•    Notify the council at the prescribed stages of building work
•    Advising the council of the name and contact details of the person who will be supervising the building work
•    Undertake the building work in accordance with the approved documentation
•    Submission of a signed Statement of Compliance (Schedule 19A) to the relevant authority on completion of the building works

Additionally, in South Australia, Owner Builders must pay the construction industry training levy.

The levy must be paid on all works where the estimated value will exceed $15,000.

The levy totals 0.25% of the value of the building works and is payable to the Construction Industry Training Board.

Title Requirements and Permit Restrictions

The Owner Builder Information Booklet as produced by the South Australian Government describes an Owner Builder as follows:

Land owners who plan to build on their land and either carry out the work themselves, or coordinate the necessary tasks to construct the building are considered to be Owner Builders.

If the building work is being done with a view to sell or let the land or buildings then a licensed building work contractor will need to be hired to undertake the building work.

Owner Builders are required by law to meet the same legislative requirements relating to building work as licensed builders.

These requirements are contained in the Development Act and Regulations 1993.

This means that a person or entity with an interest in a parcel of land is entitled to undertake the function of an Owner Builder.

At this time there is no legislative requirement to be licensed as an owner builder in South Australia.

There exists no restriction on the number of owner builder projects which may be undertaken, provided the above restrictions and requirements are satisfied.

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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 responsible 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.

APEX Training has developed specific management tools, checklists and registers that make this process simple.

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 South Australia, the Building Work Contractors Act 1995 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

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Insurance and Finance

Owner Builders must ensure their property and the construction is adequately and appropriately covered during the construction phase of the project.

The Building Work Contractors Act 1995 requires licensed building work contractors to take out indemnity insurance for all building work contracts costing $12,000 or more to cover non completion of the building work or failure to rectify faulty work if the contractor dies, disappears or is declared bankrupt.

The contractor is required to forward the certificate of indemnity insurance to the building owner.

As a minimum, we recommend owner builders have the following insurances:

    * Construction Insurance
    * Public Liability
    * Householder Insurance

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