The Law Handbook 2024

564 Section 6: Houses, communities and the road • must be the owner of the land on which the building work is to occur; • complete construction induction training if the property is to become a workplace during construction and it is necessary to maintain occupational health and safety requirements. An owner–builder either carries out the work themselves or hires trades people to do the work. Plumbers and electricians must be licensed or registered. Owner–builders should satisfy themselves of the licensing or registration of these trades people. An owner–builder cannot perform demolition work, stumping, re-blocking, subfloor work, or relocate a home. This work must be carried out by a registered builder. An owner–builder must enter into a major domestic building contract (see ‘Building contracts’, below) when engaging a registered domestic builder, contractor or tradesperson for work in excess of $10 000 unless they are engaged for work involving a single trade (e.g. electrical work or painting). If the work is going to cost more than $16 000, then the contractor or tradesperson must supply home warranty insurance. Consumers should be wary of unregistered builders who are prepared to assist consumers with owner–builder projects. There are normally good reasons why builders cannot gain registration. Unregistered builders or builders with limited registration should be avoided. Always check a builder’s registration and home warranty insurance. An owner–builder is not required to insure the works against defects unless they sell their home within six-and-a-half years of the date of the occupancy permit (s 137B Building Act). A registered builder must produce evidence of home warranty insurance before commencing any work. If in doubt, you should opt for a traditional arrangement and engage a registered builder under a written contract. It is important when seeking quotes that consumers are clear and consistent in describing their building work. Obtain at least three quotes. Check examples of the builder’s work and request references. The VBA can inspect owner–builder projects. Registered building practitioners The Building Act regulates the registration of building practitioners. To obtain registration, a building practitioner must hold an appropriate qualification, be of good character and present evidence to the VBA that they are covered by the requisite insurance. Builders, demolishers, draftspersons, engineers, building inspectors, quantity surveyors and building surveyors are all required to be registered. Ensure that the person or company you are dealing with (i.e. the builder) is registered with the VBA. For work over $16 000, the builder must obtain home warranty insurance. Building surveyors Under the Building Act a building permit must be obtained for nearly all building work, being work for and in connection with the construction, alteration, demolition or removal of a building. Unless the work involves a single trade, such as tiling or plumbing, nearly all domestic building work requires a building permit. Regulation 23 of the Building Regulations 2018 (Vic) (‘ Building Regulations ’) sets out what buildings and building work do not require a building permit. For example, garden sheds with a floor area of less than 10 square metres do not require a permit. A building permit is required at the beginning of a project before any building work is carried out. An occupancy permit or certificate of final inspection is obtained at the end of a project when the work has been completed. New work cannot be occupied without an occupancy permit. Do not overlook this requirement in your eagerness to move into your new home. Building permits, occupancy permits, and certificates of final inspection are issued by building surveyors. Prior to the introduction of the Building Act, building permits were issued by local councils. The Building Act allows this work to be carried out by private building surveyors. Certain councils continue to act as building surveyors, offering consumers a choice, but building work can be carried out without the involvement of local councils. A building surveyor is responsible for checking the plans and designs to ensure they comply with minimum building standards. Building surveyors ensure that each building practitioner engaged in the building work is registered and covered by the required insurance and that the requirements of all relevant authorities and planning permits are addressed in the project.