Well… it depends on who you ask!

There have been a few interesting situations brought to our attention recently by some prospective Owner Builders who thought they were on the right path, only to find out at the last minute that they were not: Consequences: Lost time and Lost $$

The general scenario…

A prospective Owner Builder in Queensland contacted the BSA to ask if they needed an Owner Builder Permit to carry out some work on their home. After answering some questions the prospective Owner Builder was told that they don’t need a permit. In this particular instance the Owner Builder was using a builder under contract to construct the house to lock up stage and then the owner was going to complete the remainder of the project.

So they got their plans into council and waited for the approvals to come back. Whilst all this was happening they got their contracts organised with the builder and pretty much all of their ducks were lined up waiting to go.

Then the call came from council: “We have approved your building application and we are ready to release the documents, but where is your Owner Builder Permit?”

The customer explained that they don’t need one as they have a builder under contract. Not so, according to the council.

So now the owner had complete the owner builder course, get their certificate of completion, submit their application to the BSA Qld and then with Owner Builder Permit in hand, go back to the council. This added another four weeks to the wait… frustrating and costly!

The moral to this story is:

No matter what your situation is, consider yourself an Owner Builder unless you are advised otherwise in writing by both the council and the BSA Qld. Having this attitude will save you alot of time and hassles later down the track, and if you find that you do not need the permit after all you can always apply to have it rescinded.

This goes for every state by the way, not just Queensland.

Some Owner Builders undertake projects with little or no regard for insuring themselves and their project against the variety of risks involved. Crazy but true. Always remember that as the Owner Builder, you are the Principal Contractor.You are responsible, and therefore liable. Cover all angles, and don’t just assume that you will be covered.

Following are some of the insurances you should have and some that you may wish to consider, depending on your circumstances. 

What insurances must you have?

Although it varies from state to state, a simple rule to follow is: Find an expert, eg. a broker in the field of construction insurance. Specifically find out what their experience is with insuring Owner Builders in your state. There are many insurance brokers around, but just as many of them are specialised and not all of them would have any idea what insurance you should have! If you want a referral then ask us.

Here are some general rules of thumb that will support you as the Principal Contractor/Project Manager when it comes to insurance, always:

1. Use contracts with your tradespeople and suppliers. 
2. Take copies of all of the current licences of all of your tradespeople. 
3. Take copies of all of the current insurance policies owned by all of your tradespeople. This includes but is not limited to:
   a. Home Warranty policy specific to your project.
   b. Workcover policy.
   c. Public Liability policy. 
4. Take copies of all of the current OHS/WHS general induction certificates (these are often issued as a card with different colours in each state).

Now for some of the policies that you need to consider…

Structural Warranty Insurance

Sometimes referred to as Home Warranty Insurance or Home Indemnity Insurance. This is a complex policy and differs in every state. This insurance is available and compulsory for licensed builders. Depending on your state you may be required to source a home warranty insurance policy from the trades that are working for you to cover their specific area of structural workmanship.

Generally speaking you do not need to take out Home Warranty Insurance. However if you sell your property within 6 or 7 years (depending on the state you are in) you will need to take out a Structural Warranty Insurance Policy prior to the sale and you will also need to note on the contract of sale that the property was owner built.

Home Warranty Insurance in the Building Industry is a minefield. It is recommended you seek professional advice from the state body that governs this area of insurance.

WorkCover or Workers Compensation Insurance

As you are the Owner Builder you are not covered by any Workers Compensation Policy as this is not your place of work, ie. you don’t do this for a living. You need to have a personal injury policy and/or income protection in case you have an accident.

Visit Owner Builder Advice for more information.

Talk to the experts. Make sure you have full and proper cover.

What you may not be aware of is that:

1. Every state and territory regulates Owner Builders differently. So accessing the training relevant to the state you wish to build in is vital.

2. Getting an Owner Builder Permit or Licence in one state does not allow you to undertake an Owner Building project in another. You must acquire a permit or licence for each state or territory you plan to build in.

Owner Builder Training has been set up to make it easy for people to find out what they need to do to get their permit or licence. We can even help you out with the training and are here to answer any questions you may have about the process. So whatever you need or want to know, just ask us. For more information about the Owner Builder Course please visit the Owner Builder Course page.