Thinking of building as an owner-builder?
With owner-building continuing to be a popular option among homeowners, it’s essential that tradespeople and practitioners and the public are aware of their obligations when it comes to carrying out work as owner-builders.
Whether you are carrying out building work for an owner-builder or a homeowner, the requirements are the same – all domestic building work costing a total of more than $5000 (including labour and building materials) must be carried out by a registered building practitioner and a major domestic building contract must be in place with the owner.
Unregistered tradespeople cannot carry out building work for owner-builders or other homeowners if the total cost of the work is more than $5000.
When an owner-builder employs a registered building practitioner to complete work costing more than $16,000, the practitioner will need to take out domestic building insurance cover, just as they would with any other client. This will cover the owner in case the builder dies, disappears, becomes insolvent, or fails to comply with a VCAT or Court Order issued on or after 1 July 2015.
Anyone who carries out building work when they are unregistered, does not provide a compliant major domestic building contract or does not have the required insurance, may face prosecution or disciplinary action for offences under the Building Act 1993.
For further information on owner-builder requirements visit the VBA website.