Whether you are or aren’t an owner builder can sometimes be a tricky concept to get your head around.
Even if you didn’t personally lift a hammer, but rather project-managed different trades to do the work, you are still, legally, the owner builder.
To summarise, you are an owner builder if you:
- Use your own skills to build, extend or renovate your home
- Manage sub-contractors to do the work on your behalf
- Are a registered builder who builds, extends or renovates a home on your property
As an owner builder you would be responsible for –
- Doing all or part of the work yourself, except work that must be carried out by licensed tradespeople
- Checking the licenses and registration of tradespeople before they are contracted
- Arranging insurance
- Managing the occupation health and safety of the workers on your property
- Obtaining permits and organizing building inspections
- Ensuring the work meets building regulations and standards
There are many advantages to being an owner builder including better control, cost savings and flexibility.
Risks to consider include unknown budgetary issues, facing complex and unfamiliar situations, and shouldering the overall responsibility for the project and finance.
If you’d like to speak to a professional about your home project, don’t hesitate to call the team at Jim’s Building Inspections on 131 546 or click to enquire and we will give you a call.
Conclusion
Determining whether you’re an owner-builder hinges on your involvement in construction activities. If you undertake or oversee building, renovation, or extension projects on your property—regardless of whether you physically perform the work or manage subcontractors—you qualify as an owner-builder. This designation brings both advantages, such as cost savings and control over the project, and responsibilities, including compliance with legal requirements, safety standards, and insurance obligations. Understanding these aspects is crucial to ensure a successful and legally compliant building experience.
FAQs
An owner-builder is someone who personally undertakes or manages building, renovation, or extension works on their property. This includes using personal skills or overseeing subcontractors.
In most Australian states, a license or permit is required to undertake owner-builder work, especially for projects exceeding a certain value. Requirements vary by state.
Responsibilities include ensuring work complies with building codes, obtaining necessary permits, arranging inspections, managing safety on-site, and securing appropriate insurance coverage.
Yes, obtaining insurance is mandatory in some states and advisable in others. It protects against potential defects and liabilities arising from the construction work.
The process varies by state but generally involves completing a course, submitting an application to the local council or relevant authority, and paying any applicable fees.
Yes, you can hire licensed subcontractors. However, you remain responsible for ensuring their work complies with regulations and for managing the overall project.
Owner builder warranty inspection conducted by a qualified professional to assess the quality and compliance of owner-builder work, often required when selling the property.
The duration varies by state. For instance, in NSW, the warranty period is typically six years for major defects.