The Law Handbook 2024

563 NOTE The law in this chapter is current as at 1 September 2023. Introduction Home building and renovating is a highly technical area often giving rise to confusion and expensive disputes and litigation. This chapter highlights the important issues that need to be considered and provides general guidance to the law in this area. It is important to prepare properly before com­ mencing any project and to carefully review any documents. Anyone contemplating major domestic building work should first get professional legal advice. Preliminary issues Legislation Domestic building work in Victoria is governed by: • the Building Act 1993 (Vic) (‘ Building Act ’); • the Australian Consumer Law and Fair Trading Act 2012 (Vic) (‘ ACL&FTA ’); and • the Domestic Building Contracts Act 1995 (Vic) (‘ DBC Act ’). The DBC Act contains a number of consumer pro­ tection provisions that are outlined in this chapter. Consumer Affairs Victoria is responsible for admin­ istering the ACL&FTA and DBC Act. The Victorian Building Authority ( VBA ) administers the Building Act, oversees building legislation and regulates building practices in Victoria. For more information, see ‘Where to get help’ at the end of this chapter. Domestic building work Sections 5 and 6 of the DBC Act describe the domestic building work covered by this legislation. TheDBCAct applies to the erection and construction of a home and the renovation, alteration, extension, improvement or repair of a home including associated work, such as but not limited to, landscaping, paving, driveways, fencing, garages, workshops, swimming pools or spas. It also applies to the demolition or removal of a home, or any work associated with the construction or erection of a building on land zoned residential and in respect of which a building permit is required under the Building Act. ‘Home’ is defined as any residential premises, but does not include a caravan, a rooming house, motel, residential club, nursing home, hospital or any residence that is not intended for permanent habitation. The DBC Act does not apply to farm buildings, buildings intended to be used only for business purposes, or to buildings intended to be used only to accommodate animals. Builder vs owner–builder An early decision is whether you will engage a registered builder or whether you will carry out the building works yourself as an owner–builder. This is an important decision as it influences the contractual and insurance arrangements for the work (see ‘ Building contracts’ and ‘Insurance’, below). Regardless of whether the work is carried out by a registered builder or by you as an owner–builder, you need to obtain any necessary planning and/or building permits. Owner–builders: • must obtain a certificate of consent from the VBA before obtaining a building permit for work valued over $16 000; • must, before obtaining a certificate of consent, demonstrate that they possess the required knowledge by completing an online assessment – a 100 per cent pass is required; • may only obtain one building permit for a single dwelling or associated work in any five-year period; • must reside in or intend to reside in the finished dwelling; • cannot build for profit (i.e. for rent or sale); 6.3 Building or renovating a house Contributor: Mark J. Attard, Partner, Clyde & Co.