New South Wales Owner Builder Education
Following is an overview of the legal responsibilities which are relevant to the holder of an owner builder permit for New South Wales
NSW Owner Builder Permit
You must understand your responsibilities and legal obligations before you embark on an owner builder project.
Owner building in NSW can be a rewarding and profitable experience.
It is important however to realise your commitment and to remain diligent and if you are to be successful as an owner builder.
Discipline is the key, discipline in purchasing and sticking to your budget and discipline in regards to accurate documentation and record keeping of your owner builder project.
Owner building in NSW can be a rewarding and profitable experience.
It is important however to realise your commitment and to remain diligent and if you are to be successful as an owner builder.
Discipline is the key, discipline in purchasing and sticking to your budget and discipline in regards to accurate documentation and record keeping of your owner builder project.
BECOMING AN OWNER-BUILDER
Extracts NSW Fair Trading Website
An owner-builder is an individual who does owner-builder work and holds a permit for that work. The work is usually the job of managing their own residential building project and performing the coordinating and contracting roles usually undertaken by a builder.
Owner-builder work is:
What are your responsibilities as an owner-builder?
As an owner-builder, you are responsible for:
An owner-builder permit is not a building licence.
It does not allow you to:
It is an offence under the Home Building Act for the holder of an owner-builder permit to:
The maximum penalty for these offences is $22,000.
Do your sums before you start and ask yourself if any saving you will make is worth the time and responsibility it will take. As an owner-builder you are guaranteeing the work you undertake.
If you don‘t want the responsibility of being an owner-builder, you should be wary of a builder who suggests you obtain an owner-builder permit while they do all the building work for you.
This may be a ploy where the builder is shirking responsibility, is unlicensed, or is unable to get the necessary insurance.
Only one owner-builder permit can be issued within any five-year period, unless the application and any earlier permit relate to the same land and to related owner-builder work or unless special circumstances exist.
Being an owner-builder takes organisation, self-motivation, communication skills and lots of free time.
This means that an owner builder must be prepared to spend a significant part of their time at the site looking and being aware of what has happened and what is about to happen.
GETTING A PERMIT
How do I get an owner-builder permit?
To obtain an owner-builder permit, you must apply to a Fair Trading Centre and demonstrate that:
You should also provide:
EXTRACT FROM THE HOME BUILDING ACT 1989
Owner-builder work means residential building work:
(a) the reasonable market cost of the labour and materials involved in which exceeds the prescribed amount, and
(b) that relates to a single dwelling-house or a dual occupancy:
(i) that may not be carried out on the land concerned except with development consent under Part 4 of the Environmental Planning and Assessment Act 1979, or
(ii) that is complying development within the meaning of that Act.
(2) If land is owned by a company that is wholly owned by individuals, the land is to be taken (for the purposes of this Division) to be owned by those individuals.
(3) In this Division, a reference to an owner of land includes a reference to a person who has a prescribed interest in the land.
30 Application to owner-builder permits of Licensing and Registration (Uniform Procedures)
Act 2002
(1) The Director-General may grant owner-builder permits for the purposes of this Act.
(2) Part 2 of the Licensing and Registration (Uniform Procedures) Act 2002 (the applied Act) applies to and in respect of an owner-builder permit, subject to the modifications and limitations prescribed by or under this Act.
(3) For the purpose of applying Part 2 of the applied Act to an owner-builder permit:
(a) the permit may be amended under that Act, and
(b) the reference to 14 days in section 24 (1) of that Act (as to the period within which changed particulars must be notified) is to be read as a reference to 7 days.
(4) An application for an owner-builder permit may be made only by an individual, and not by a corporation, partnership or other association.
(5) Subject to this section, the regulations may make provision for or with respect to such matters concerning an owner-builder permit as are relevant to the operation of Part 2 of the applied Act.
Issue of owner-builder permits
(1) (Repealed)
(2) The Director-General must reject an application for an owner-builder permit if the Director-General is not satisfied:
(a) that the applicant is an individual of or above the age of 18 years, or
(b) that the applicant owns the land concerned, whether or not together with another or other individuals, or
(c) that the single dwelling-house or one of the dwellings comprising the dual occupancy concerned will be occupied as the residence (being, in the case of a dual occupancy, the principal residence) of the applicant after the work authorised by the permit is done, or
(d) that the applicant has completed any applicable education course or training approved by the Director-General for the purposes of this section.
(3) The Director-General must reject an application for an owner-builder permit if the applicant was, during the 5 years (or, if the regulations prescribe another period, during the other period) occurring immediately before the application was lodged, issued with another owner-builder permit (or an owner-builder permit under the Builders Licensing Act 1971), unless the Director-General is satisfied:
(a) that the application and the other permit both relate to the same land and to related ownerbuilder work, or
(b) that special circumstances exist.
Authority conferred by owner-builder permits
(1) An owner-builder permit authorises its holder to do such residential building work as is described in the permit on the land specified in the permit.
(2) The authority conferred by an owner-builder permit:
(a) is subject to the conditions applicable to the permit for the time being, and
(b) may, on the application of the holder of the permit, be varied by an order of the Director- General set out in a notice served on the holder of the permit.
Unlicensed contracting
(1) The holder of an owner-builder permit must not contract with another person for that person to do any residential building work (or any part of the work) for the holder unless the person is the holder of a contractor licence to do work of that kind.
Maximum penalty: 200 penalty units.
(2) The holder of an owner-builder permit is not guilty of an offence under this section if the holder
establishes that the holder did all that could reasonably be required to prevent the contravention of
this section.
Extracts NSW Fair Trading Website
An owner-builder is an individual who does owner-builder work and holds a permit for that work. The work is usually the job of managing their own residential building project and performing the coordinating and contracting roles usually undertaken by a builder.
Owner-builder work is:
- Any work (including supervising and coordinating) involved in the construction of, or alteration, repair or addition to, a dwelling (which includes a house, terrace, town house, garage, swimming pool and certain other structures and improvements).
- Where the reasonable market cost of the work (including labour and materials) exceeds $5,000; and
- Which relates to a single dwelling or dual occupancy:
- That requires a development consent under Part 4 Environmental Planning & Assessment Act 1979; or
- That is a complying development within the meaning of the Act; and Is done by an owner of the land (or a person having a prescribed interest in the land eg: long term lease) upon which the work is to be carried out.
What are your responsibilities as an owner-builder?
As an owner-builder, you are responsible for:
- Overseeing and supervising all tradespeople.
- Ordering of materials and management of the building site.
- Obtaining all necessary council and authority approvals.
- Ensuring that the financial, taxation and insurance requirements of the building work are met and fully comply with all laws.
- Providing a safe work environment that complies with WorkCover requirements.
- Being aware of your obligations under the Workers Compensation Act 1987 and Occupational Health and Safety Act 2000.
- Ensuring any contractor engaged is appropriately licensed and insured to do the work contracted for.
- Warranting that the work and materials will be fit for the purpose and that the work results in a dwelling fit for occupation.
An owner-builder permit is not a building licence.
It does not allow you to:
- Do work other than the project covered by the Development Application or Complying Development number.
- Do specialist work such as electrical, plumbing, gasfitting, air-conditioning and refrigeration work (unless you hold a licence for such work).
It is an offence under the Home Building Act for the holder of an owner-builder permit to:
- Knowingly engage an unlicensed contractor.
- Lend your permit to another person.
- Refuse to disclose to an authorised officer the names and addresses of contractors working on the site.
The maximum penalty for these offences is $22,000.
Do your sums before you start and ask yourself if any saving you will make is worth the time and responsibility it will take. As an owner-builder you are guaranteeing the work you undertake.
If you don‘t want the responsibility of being an owner-builder, you should be wary of a builder who suggests you obtain an owner-builder permit while they do all the building work for you.
This may be a ploy where the builder is shirking responsibility, is unlicensed, or is unable to get the necessary insurance.
Only one owner-builder permit can be issued within any five-year period, unless the application and any earlier permit relate to the same land and to related owner-builder work or unless special circumstances exist.
Being an owner-builder takes organisation, self-motivation, communication skills and lots of free time.
This means that an owner builder must be prepared to spend a significant part of their time at the site looking and being aware of what has happened and what is about to happen.
GETTING A PERMIT
How do I get an owner-builder permit?
To obtain an owner-builder permit, you must apply to a Fair Trading Centre and demonstrate that:
- You are over 18 years old.
- You own or have a prescribed interest in the land (eg certificate of title, rates notice).
- You do or intend to live in the completed home.
You should also provide:
- A description and address of the proposed work with copy of plans; and
- Council development certificate number or complying certificate number; and
- An owner-builder permit application fee; and
- Evidence you have completed an education course or training approved by the Commissioner of the NSW Fair Trading, if the value of the proposed work is over $12,000.
EXTRACT FROM THE HOME BUILDING ACT 1989
Owner-builder work means residential building work:
(a) the reasonable market cost of the labour and materials involved in which exceeds the prescribed amount, and
(b) that relates to a single dwelling-house or a dual occupancy:
(i) that may not be carried out on the land concerned except with development consent under Part 4 of the Environmental Planning and Assessment Act 1979, or
(ii) that is complying development within the meaning of that Act.
(2) If land is owned by a company that is wholly owned by individuals, the land is to be taken (for the purposes of this Division) to be owned by those individuals.
(3) In this Division, a reference to an owner of land includes a reference to a person who has a prescribed interest in the land.
30 Application to owner-builder permits of Licensing and Registration (Uniform Procedures)
Act 2002
(1) The Director-General may grant owner-builder permits for the purposes of this Act.
(2) Part 2 of the Licensing and Registration (Uniform Procedures) Act 2002 (the applied Act) applies to and in respect of an owner-builder permit, subject to the modifications and limitations prescribed by or under this Act.
(3) For the purpose of applying Part 2 of the applied Act to an owner-builder permit:
(a) the permit may be amended under that Act, and
(b) the reference to 14 days in section 24 (1) of that Act (as to the period within which changed particulars must be notified) is to be read as a reference to 7 days.
(4) An application for an owner-builder permit may be made only by an individual, and not by a corporation, partnership or other association.
(5) Subject to this section, the regulations may make provision for or with respect to such matters concerning an owner-builder permit as are relevant to the operation of Part 2 of the applied Act.
Issue of owner-builder permits
(1) (Repealed)
(2) The Director-General must reject an application for an owner-builder permit if the Director-General is not satisfied:
(a) that the applicant is an individual of or above the age of 18 years, or
(b) that the applicant owns the land concerned, whether or not together with another or other individuals, or
(c) that the single dwelling-house or one of the dwellings comprising the dual occupancy concerned will be occupied as the residence (being, in the case of a dual occupancy, the principal residence) of the applicant after the work authorised by the permit is done, or
(d) that the applicant has completed any applicable education course or training approved by the Director-General for the purposes of this section.
(3) The Director-General must reject an application for an owner-builder permit if the applicant was, during the 5 years (or, if the regulations prescribe another period, during the other period) occurring immediately before the application was lodged, issued with another owner-builder permit (or an owner-builder permit under the Builders Licensing Act 1971), unless the Director-General is satisfied:
(a) that the application and the other permit both relate to the same land and to related ownerbuilder work, or
(b) that special circumstances exist.
Authority conferred by owner-builder permits
(1) An owner-builder permit authorises its holder to do such residential building work as is described in the permit on the land specified in the permit.
(2) The authority conferred by an owner-builder permit:
(a) is subject to the conditions applicable to the permit for the time being, and
(b) may, on the application of the holder of the permit, be varied by an order of the Director- General set out in a notice served on the holder of the permit.
Unlicensed contracting
(1) The holder of an owner-builder permit must not contract with another person for that person to do any residential building work (or any part of the work) for the holder unless the person is the holder of a contractor licence to do work of that kind.
Maximum penalty: 200 penalty units.
(2) The holder of an owner-builder permit is not guilty of an offence under this section if the holder
establishes that the holder did all that could reasonably be required to prevent the contravention of
this section.