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hassles later down the track, and if you find that you do not need the permit after all you can always apply to have it rescinded.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.

• In Qld there is a mandatory requirement to complete an Owner Builder Training Course. The formal course name is 39219 QLD Course in Preparation for Owner Builder Permit. Right now this is the most comprehensive, compulsory training available to Owner Builders. 
• In NSW there is a mandatory requirement to complete a very simple, non recognised course as part of the Owner Builder Permit Application. This is basically a 2 page questionnaire. In 2010 this will change to a formal, recognised course.
• In all other states there is no mandatory training required. You simply apply for your Owner Builder Permit through the state body that regulates building and owner building.

Owner Builder Training is the marketing arm of Back to Basics, which in turn is an approved provider of the Qld Owner Builder Course. As other states introduce the mandatory course as part of the permit application then Back to Basics will provide the appropriate courses under the state bodies’ guidelines.

Even if you are in a state with no mandatory training requirements, it is still wise to undertake a comprehensive Owner Builder Training Course. The reason is simple: the skills you learn will assist you to smoothly complete your owner builder project. You simply cannot compare the investment in improving your skills with the risk of failing to manage your project due to a lack of knowledge. Good training is the Owner Builder Insurance everyone should have!

If you are not sure whether or not you need to do an Owner Builder Course then ask yourself these questions:

1. Do I know how to interpret detailed plans and specifications? 
2. Do I understand my Workplace, Health and Safety Obligations as the Principle Contactor and Site Supervisor?
3. Do I understand how to issue a scope of work and then negotiate a price based on specification and conditions of contract? 
4. Do I understand the informal and formal procedures for dispute resolution within the building industry?
5. Can I immediately recognise bad building work and do I have an understanding of the Building Code of Australia (BCA)? 
6. Do I have an accurate and detailed estimate of all of my Owner Builder costs?

If you answered ‘no’ to any of these questions then you should consider an Owner Builder Course, regardless of whether or not the state says you have to.

Remember, this is your project, the buck stops with you. A few hundred dollars and some time and energy now could save you thousands of dollars down the track. Owner Builder Training is about making sure you have the skills and confidence to manage your project successfully.

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.

It depends on where your Owner Builder Project will be, but generally speaking you will need to:

1. Identify the relevant State Government Body that regulates Owner Building in the state of your project.
2. Work out the total cost of works that you intend on undertaking as an Owner Builder. This figure is more important than you might realise. For instance, if you intend making a small renovation which is for example, under $11,000 in value of building work, then in some states you may not need an Owner Builder Permit or Licence to proceed.
3. Complete an Application Form with the relevant government regulator. These forms will be available from that State Government’s Website.
4. Provide Proof of Ownership of Land held. You will need to prove you own the land and in what name it is owned. This is another important matter as again rules differ slightly in each state regarding whose name the Owner Builder Permit or Licence must be in if the title of the land is jointly owned, owned by a trust or entity of some kind, etc. Usually, the acceptable forms of proof are Current Title Search or Confirmation Registration Statement, and these must be original and less than 30 days old.
5. When submitting your Owner Builder Permit or Licence Application you will often have to provide proof of completion of an approved Owner Builder Course. This is where Owner Builder Training’s specialty lies; we provide these courses under the regulatory framework dictated by each state and territory government.
6. You will need to pay a fee when you submit your application and supporting paperwork to the relevant regulatory department. Again it differs for each state and territory and it would be wise for you to check first what the costs of gaining your Owner Builder Permit or Licence are.

Please note this is a general summary of the process you will need to follow. More details for each state and territory will be added here shortly. Our aim is to make Owner Builder Training the definitive guide for all your Owner Builder Training and Advice. And we look forward to helping you achieve your Owner Builder Goals.

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.

Our goal is to make this website a definitive guide for all your Owner Builder Training needs.

It doesn’t matter if you’ve been renovating for years, never handled a hammer in your life, or you simply want to take the plunge and begin an Owner Builder Project to put up your dream home, we can help.

You’ll discover exactly what you need to do to get an Owner Builder Licence or Owner Builder Permit, what training is necessary, and the regulations specific to the state or territory you wish to build in.

Add the Owner Builder Training Website to your Favourites List, as the site is constantly being updated – keeping you in touch with new legislation and tips for getting the most out of your Owner Builder Project.