Owner Builder Requirements Western Australia
Applicable Legislation

•    Builders Registration Act 1993
•    Home Building Contracts Act 1991
•    Health Act
•    Building Code of Australia

The Western Australia Government produces a brochure titled “Building Your Own Home” which is suggested reading for anyone considering undertaking an Owner Builder project.

This brochure provides valuable information on Owner Builder obligations, and includes a suggested checklist which owner builders should consider before embarking on any Owner Builder project.

The booklet highlights information on the following Owner Builder topics:

•    Owner Builder Fee
•    What Type of Home can be Erected by an Owner Builder
•    Owner Builder Responsibilities in respect to Standard of Work
•    Building Problems and Disputes
•    A Suggested Checklist

Further important information is included in the Owner Builder Statutory Declaration which must be completed by all Owner Builder applicants.

Title Requirements and Permit Restrictions

The brochure titled “Thinking of Building Your Own Home?” states:

Within the area of jurisdiction of the Board persons may construct for themselves, once within a six year period, a dwelling house or a building comprising two dwellings on ground level, including additions thereto.

Owner Builders are not permitted to sell their owner built homes within three years of the completion of their project without the written consent of the relevant Minister or their delegate.

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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 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.

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

The requirements of Worksafe WA should be investigated and understood before any Owner Building work commences on your 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.

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.

Western Australian law requires Owner Builders to take out Home Indemnity Insurance if they enter into a contract to sell or otherwise dispose of a dwelling built pursuant to an Owner Builders Licenses  (within 7 years of the issuance of the license) and provide this insurance to the purchaser.

This insurance policy must relate only to the building work to be carried out under the Owner Builder Permit 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 7 years from the completion of the building.

This policy would normally becomes active after the occupancy permit has been issued.

Generally, 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

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