Owner Builder in Victoria: Everything You Need to Know

If you are considering building a home or undertaking significant renovations in Victoria, you may have heard the term “owner builder.” An owner builder is someone who takes responsibility for domestic building work on their own land. This means that instead of hiring a registered builder, you will be in charge of managing the project yourself.

Becoming an owner builder in Victoria requires meeting certain eligibility requirements and obtaining a certificate of consent from the Victorian Building Authority (VBA). The VBA is responsible for regulating the building and plumbing industries in Victoria, and their website provides a wealth of information for anyone considering becoming an owner builder. This includes information on the requirements for obtaining a certificate of consent, as well as resources and support available to owner builders.

It is important to note that being an owner builder comes with significant duties and responsibilities. As an owner builder, you will need to obtain a building permit, supervise or undertake the work, and comply with building regulations and standards. You will also need to ensure that the work is carried out safely and to a high standard. While becoming an owner builder can be a rewarding experience, it is not a decision to be taken lightly. It is important to carefully consider all aspects of the process before deciding whether it is the right choice for you.

Understanding Owner-Builder Concept

If you are planning to build, extend, or renovate your home in Victoria, you might have come across the term “owner-builder.” An owner-builder is someone who takes responsibility for domestic building work carried out on their own land. As an owner-builder, you will have to ensure that a building permit is obtained, supervise or undertake the building work, and comply with all the legal requirements.

Being an owner-builder is not for everyone. It requires a certain level of skill, knowledge, time, and commitment. You need to have a good understanding of the building process, including design, construction, and project management. You also need to be aware of the risks and responsibilities that come with being an owner-builder.

One of the main advantages of being an owner-builder is that you can save money on the cost of building your home. This is because you can do some of the work yourself, such as painting, tiling, or landscaping. You can also manage sub-contractors to do the work and negotiate better prices. However, you need to balance the cost savings with the quality of work and the time it takes to complete the project.

Before you decide to become an owner-builder, you need to consider the following factors:

• Your skills and experience in building and construction
• Your availability to supervise or undertake the building work
• Your ability to manage sub-contractors and suppliers
• Your financial capacity to fund the project
• Your legal obligations and responsibilities as an owner-builder

In Victoria, if you want to become an owner-builder, you need to undertake a registration process with the Victorian Building Authority (VBA). This involves completing an owner-builder course, obtaining insurance, and submitting an application to the VBA. The registration is valid for five years and can be renewed if you comply with the conditions and requirements.

Application Process

Applying to become an owner-builder in Victoria involves several steps. In this section, we will explain the process in detail.

Certificate of Consent

To apply for an owner-builder certificate of consent, you must pay a non-refundable fee of $109.70. This fee must be paid at the time of application. The application for an owner-builder certificate of consent is done via VBA360, which is the Victorian Building Authority’s online self-service portal.

VBA360 Account

Before you can apply for an owner-builder certificate of consent, you must create an account on VBA360. This account will allow you to manage your application and track its progress. You can create a VBA360 account by visiting the VBA website and clicking on the “Register for VBA360” button.

Eligibility Requirements

To be eligible for an owner-builder certificate of consent, you must meet certain requirements. These requirements include:

• You must own the land where the building work will take place
• You must intend to live in the house once it is completed
• You can only build or renovate one house every five years
• You must complete an eLearning assessment and construction induction training

For a full list of eligibility requirements, visit the VBA website and read the “Owner-builder eligibility” page.

Responsibilities and Duties

As an owner-builder in Victoria, you have certain responsibilities and duties that you must fulfill. These include workplace safety, building regulations, and contractual obligations.

Workplace Safety

As an owner-builder, you are responsible for ensuring that the worksite is safe for all workers and visitors. This includes providing appropriate safety equipment, ensuring that all workers are trained in the proper use of equipment, and maintaining a safe working environment. You should also ensure that all workers are covered by appropriate insurance and that you have a plan in place for dealing with accidents or emergencies.

Building Regulations

As an owner-builder, you are responsible for ensuring that all building work is carried out in compliance with the relevant building regulations. This includes obtaining the necessary permits and approvals, ensuring that all work is carried out by licensed tradespeople where required, and ensuring that all work is carried out to a high standard.

You are also responsible for ensuring that the building work meets all relevant safety standards, including fire safety, electrical safety, and structural safety. You should also ensure that all work is carried out in compliance with any relevant environmental regulations.

Contractual Obligations

As an owner-builder, you may choose to contract out some or all of the building work to tradespeople. In this case, you are responsible for ensuring that all contractors are licensed and that all work is carried out in compliance with the relevant building regulations. You should also ensure that all contracts are clear and that both parties understand their obligations.

In addition, you are responsible for ensuring that all payments are made on time and that all financial obligations are met. This includes paying for all building materials, paying any subcontractors, and ensuring that all invoices are accurate and up-to-date.

Building and Planning Permits

If you’re planning to build or renovate your own home in Victoria, you’ll need to obtain the necessary permits before you start. There are two types of permits that you may need: a building permit and a planning permit.

Building Permit

A building permit is a written approval that allows you to undertake building work according to the approved plans, specifications, and other relevant documentation. It is issued by a private or municipal building surveyor and provides you with protection by ensuring that the building work is carried out safely, efficiently, and in compliance with the Building Act 1993 and the Building Regulations 2018.

To obtain a building permit, you’ll need to submit an application to a registered building surveyor. The application should include detailed plans and specifications of the proposed building work, as well as any other relevant documentation required by the surveyor. Once your application has been approved, you’ll receive a building permit that authorises you to proceed with the building work.

Planning Permit

A planning permit is a legal document that gives you permission to use or develop land in a particular way. It is issued by your local council and is required for certain types of building work, such as those that involve a change in land use or a significant alteration to an existing building.

To obtain a planning permit, you’ll need to submit an application to your local council. The application should include detailed plans and specifications of the proposed building work, as well as any other relevant documentation required by the council. The council will assess your application against the relevant planning scheme and other planning policies and guidelines, and may require you to make changes to your plans before granting the permit.

It’s important to note that obtaining a building permit does not necessarily mean that you have also obtained a planning permit. You may need both permits, depending on the nature and scope of your building work.

Insurance and Warranties

As an owner builder in Victoria, it’s important to understand the insurance and warranties that come with building or renovating your own home.

Firstly, domestic building insurance is mandatory for any work over $16,000. This insurance protects you in case your builder, contractor, or tradesperson dies, disappears, or becomes insolvent. It also covers any defects that may arise during the statutory warranty period of six years and six months. You can learn more about owner builder warranty insurance in Victoria on the Consumer Affairs Victoria website.

As an owner builder, you are responsible for ensuring that all warranties still apply. This means that any defects that arise during the warranty period must be fixed by the builder or tradesperson who carried out the work. If they fail to do so, you may be eligible for compensation through the Victorian Building Authority’s Domestic Building Dispute Resolution Victoria service.

It’s important to note that if you are an owner builder selling your property, you are required to provide owner builder home warranty insurance to the purchaser. This insurance protects the purchaser in case you, as the owner builder, die, disappear, or become insolvent and are unable to fix any defective work during the statutory period.

In the event that the building contract is not completed or the builder fails to correct any defects during the warranty period, the owner builder warranty insurance policy goes into effect. This ensures that the homeowner is protected and can receive compensation for any damages or defects.

Building Works and Projects

As an owner builder in Victoria, you take responsibility for domestic building work carried out on your own land. This includes a variety of building projects, such as renovations, swimming pools, garages, and sheds.

Renovations and Extensions

Renovations and extensions can be a great way to add value to your home and create more space for your family. As an owner builder, you will need to ensure that any renovations or extensions comply with the relevant building codes and regulations. This includes obtaining a building permit and paying the building permit levy.

When planning your renovation or extension project, it’s important to consider factors such as:

• The cost of the project
• The materials and labour required
• The impact on your neighbours and the neighbourhood
• The timeline for completion

Swimming Pools and Spas

If you’re planning to build a swimming pool or spa on your property, you will need to obtain a building permit and comply with the relevant safety standards. This includes ensuring that the pool or spa is properly fenced and has appropriate safety features such as pool covers and alarms.

When planning your swimming pool or spa project, it’s important to consider:

• The size and location of the pool or spa
• The materials and labour required
• The ongoing maintenance and upkeep costs
• The safety features required by law

Garages and Sheds

Garages and sheds can provide valuable storage space for your home and can also be used as a workshop or hobby space. As an owner builder, you will need to ensure that any garage or shed project complies with the relevant building codes and regulations. This includes obtaining a building permit and paying the building permit levy.

When planning your garage or shed project, it’s important to consider factors such as:

• The size and location of the garage or shed
• The materials and labour required
• The impact on your neighbours and the neighbourhood
• The intended use of the space

Inspections and Certificates

As an owner-builder in Victoria, you are responsible for ensuring that your building work complies with all relevant building regulations and standards. This includes obtaining the necessary inspections and certificates.

Building Inspections

Building inspections are an important part of the building process. They ensure that your building work complies with the Building Code of Australia and other relevant regulations and standards. As an owner-builder, you are responsible for arranging building inspections at various stages of the construction process.

You will need to engage a registered building surveyor to carry out the inspections. The building surveyor will issue a building permit and will conduct inspections at various stages of the construction process to ensure that the work complies with the relevant regulations and standards.

Certificate of Final Inspection

Once your building work is complete, you will need to obtain a Certificate of Final Inspection (CFI) from the building surveyor. The CFI confirms that the building work complies with all relevant regulations and standards and can be occupied.

To obtain a CFI, you will need to engage a registered building surveyor to carry out a final inspection of the building work. The building surveyor will issue the CFI if they are satisfied that the work complies with all relevant regulations and standards.

Occupancy Permit

An Occupancy Permit is required before a building can be occupied. It confirms that the building work has been completed in accordance with the approved plans and all relevant regulations and standards.

To obtain an Occupancy Permit, you will need to engage a registered building surveyor to carry out a final inspection of the building work. The building surveyor will issue the Occupancy Permit if they are satisfied that the work complies with all relevant regulations and standards.

It is important to note that an Occupancy Permit is not required for all buildings. Some buildings, such as sheds and garages, may not require an Occupancy Permit. However, it is always best to check with your local council to determine whether an Occupancy Permit is required for your building.

Legal and Regulatory Framework

As an owner-builder in Victoria, it is important to understand the legal and regulatory framework that governs building construction, building standards, and the maintenance of specific building safety features. This framework is set out in the Building Act 1993 and the Domestic Building Contracts Act 1995.

Building Act 1993

The Building Act 1993 is the primary legislation that regulates Victoria’s building industry. It sets out the legal requirements for building construction, including the standards and codes that must be followed. The objectives of the Act are to ensure that buildings are safe, healthy, and sustainable, and to protect the public from the risks associated with building work.

Under the Building Act 1993, the Victorian Building Authority (VBA) is responsible for regulating the building industry in Victoria. The VBA oversees the registration of building practitioners, the issuing of building permits, and the enforcement of building regulations and standards.

Domestic Building Contracts Act 1995

The Domestic Building Contracts Act 1995 sets out the legal requirements for domestic building contracts in Victoria. It applies to contracts between an owner-builder and a builder or tradesperson for the construction, renovation, or extension of a home or other residential building.

The Act requires that all domestic building contracts be in writing and contain specific information, including the names and addresses of the parties, the scope of the work to be performed, the payment schedule, and the dispute resolution process. It also requires that builders provide a 10-year structural guarantee for all domestic building work.

As an owner-builder, it is important to ensure that any contracts you enter into comply with the requirements of the Domestic Building Contracts Act 1995. This will help to protect you from disputes and ensure that your building project is completed to a high standard.

Role of Professionals

As an owner-builder in Victoria, you will be responsible for managing and overseeing the building project. However, you may need to work with certain professionals to ensure that the project is completed to a high standard and meets all relevant regulations and codes.

Building Surveyor

A building surveyor is a professional who is responsible for ensuring that the building work complies with all relevant building regulations and codes. They will assess the plans and specifications for the project and inspect the work at various stages to ensure that it is being carried out in accordance with these requirements.

As an owner-builder, you will need to engage a building surveyor to issue the building permit for your project. The building surveyor will also need to inspect the work at various stages to ensure that it is being carried out in accordance with the building permit and relevant regulations.

Registered Builder

A registered builder is a professional who is licensed to carry out building work in Victoria. They have the necessary skills and experience to manage and oversee building projects, and are responsible for ensuring that the work is completed to a high standard and in accordance with all relevant regulations.

As an owner-builder, you may choose to engage a registered builder to carry out certain aspects of the building work. For example, you may engage a registered builder to carry out the structural work or to manage the project on your behalf.

Architects

An architect is a professional who is responsible for designing buildings and overseeing the construction process. They have the necessary skills and experience to ensure that the building is functional, safe, and aesthetically pleasing.

As an owner-builder, you may choose to engage an architect to design the building and prepare the plans and specifications for the project. The architect will work with you to ensure that the design meets your requirements and is suitable for the site.

Frequently Asked Questions

What is the cost of an owner builder permit in Victoria?

The cost of an owner builder permit in Victoria varies depending on the value of the work to be carried out. As of October 2023, the application fee for an owner builder permit is $317.30 for works valued up to $16,000, and $470.90 for works valued between $16,001 and $26,000. For works valued over $26,000, the application fee is $624.60. These fees are subject to change, so it is recommended to check the Victorian Building Authority (VBA) website for the latest fee schedule.

How long does it take to obtain an owner-builder permit in Victoria?

The processing time for an owner-builder permit application in Victoria is typically 10 business days. However, this can vary depending on the complexity of the application and the workload of the VBA. It is recommended to submit your application well in advance of your planned start date to allow for any delays.

What is the process for applying for an owner-builder permit in Victoria?

To apply for an owner-builder permit in Victoria, you will need to complete an application form and provide supporting documentation, including a copy of your Certificate of Title, plans and specifications, and evidence of your domestic building insurance. The application form and a detailed guide to the application process are available on the VBA website.

What is the difference between an owner-builder permit and a certificate of consent in Victoria?

An owner-builder permit allows you to carry out domestic building work on your own land, while a certificate of consent allows you to engage a registered builder to carry out the work on your behalf. An owner-builder permit requires you to take responsibility for the work and ensure it complies with all relevant building regulations.

Can an owner builder in Victoria undertake commercial building projects?

No, an owner builder in Victoria can only undertake domestic building work on their own land. Commercial building projects require a registered builder to carry out the work.

What is the VBA owner-builder assessment and how can I complete it?

The VBA owner-builder assessment is an online test that assesses your knowledge of domestic building regulations and requirements. It is a requirement for all owner builder permit applicants in Victoria. The assessment can be completed online and must be passed before your application can be approved. A link to the assessment and further information can be found on the VBA website.

Wrapping Up

Becoming an owner builder can be a fulfilling and cost-effective way to bring your dream home to life. This article has provided insights into the responsibilities and considerations involved in the process. If you have any further questions or would like professional guidance on your owner builder project, don’t hesitate to contact SQM Architects. Our experienced team is here to assist you every step of the way, ensuring your vision is realised to perfection. Reach out to us today for expert advice and support!