The Owner Builder

1

Introduction

Welcome to The Owner Builder. Our mission is to provide an easy-to-understand plain English building guide for you and all those other creative Australians who want a better financial future and lifestyle with their families.

Who is an owner builder?

Owner builders are not in the business of building. When people say they intend to be an ‘owner builder’, this may mean different things to different people.¹

You take on the role of the builder and build everything yourself without engaging tradespeople except in areas where licensed tradespeople are required by law, such as for plumbing and electrical work.

You are the builder and do some of the work yourself. You will oversee the project through to completion, but will hire subcontractors or tradespeople to do part of the building work, for example framing or roofing.

You act as the construction manager. You organise all the materials and subcontractors including perhaps a registered building contractor to create your home. You carry insurances, organise site management, and organise inspections of the progress of works.²

Managing a development project doesn’t take an expert craftsman, but a person who can schedule, delegate and direct traffic on the construction site. By taking on the role of a builder you will need to be confident that you have the time and ability to undertake these tasks. You will need to be able to manage and supervise your contractors. You must also have a good understanding of the tasks they perform and the materials being used.

Why owner-build?

Currently there are around 40 000 owner builders taking on their own construction projects nationally each year. Some say that as much as 40% of the cost to build can be saved by owner builders. Of course, whether you can translate these savings to your project depends on how competent you are in carrying out the many and varied tasks involved.

There are five main reasons to undertake your owner builder project:

To manage a smaller mortgage.

To save an average 30% of a builder’s costs.

To be in control of your time and money.

To ensure the best quality workmanship.

To create a custom design.

It is important to achieve the outcomes sought. This book can help you, the owner builder, gain confidence, and provide you with support in taking on a building commitment. It shows by example and advice how, just by being the organiser of the project, you can save thousands of dollars.

If you decide to hire a contract builder you can benefit from this guide, as it helps in understanding what is involved in building a home and what to expect in the process. It has a personal sequential photo gallery of the building process in sixty-eight steps. It includes tips and hints on the approval process, internal and external decorations, construction ideas and, most importantly, shows how to avoid mistakes.

Vital information includes aspects of choosing a block of land, such as being careful with slope on the site and determining the foundations and retaining walls required. These basics will have a lot to contribute to the outcome of the project and assist in selecting a type of house design that suits your land and budget. In general this book will aid the decision-making whether you are undertaking owner building, contract building, renovating, or hiring a project manager to build the home on your behalf.

This book eliminates the need for you as owner builder to attend long-term building courses (although you may still be required to undertake a short owner builder course to obtain your building permit). It spells out all necessary requirements and provides a straightforward guide for owner builders with little or no knowledge or experience in building.

As authors of The Owner Builder we have over 17 years combined project building industry experience. We have used our experience in sales consulting, management and owner-building to assist colleagues and the public with building ideas, problem-solving, product searches, and differentiating between dream goals and reality goals. Structure and budgeting was often a prime concern of those who sought help. This knowledge and advice is now available to you in this book.

The photographer has a wide range of knowledge of the commercial construction industry and owner-building. His input to the text of The Owner Builder as well as the easy-to-understand construction pictures adds to the readability and simplicity of the instructions. Using the methods and outlines contained within this book with similar types of materials and construction processes will enhance your chances of a successful completion of the dwelling and obtaining the final occupancy certificate.

This guide to the owner builder outlines the responsibilities that you need to be undertake and explains how to put your plans into action. It shows each step of construction on site in the building process, including the early stages of planning, and the essentials of design, materials and land qualities you need to look at to stay within a budget.

It gives examples of experiences on site and tips on dealing with tradespeople. It lists and explains necessary insurances to purchase, and the contractors’ insurance and warranties required by law. Steps to take control of the budget are outlined, and the value of hiring an estimator to prepare a tender is examined. Building materials that are mandatory for meeting sustainability requirements (such as BASIX in New South Wales) are discussed. Bushfire safety and protection are crucial subjects. The option of purchasing an existing house to knock down and rebuild is assessed.

The value of having professional legal advice and taking precautions when signing contracts is emphasised, and advice is given as to whom to turn to when a dispute arises. Suggestions for achieving a resolution are given.

Theft from building sites is a well known hazard, so advice in loss-prevention is provided.

The choice of private certifiers or council building surveyor inspections and weighing up the difference is another topic examined, as it depends on time and financial constraints, as does the choice of contract building versus owner-building.

The exciting part of deciding on colours and concepts can also be challenging so, with the benefit of their experience, the authors provide some ideas and concepts to choose from and some problems to avoid.

Landscaping must-haves to achieve the famous Aussie backyard and incorporate individual needs are often best planned ahead and prepared for during the building process, and this guide will outline when such steps need to be taken.

The appendices provide comprehensive lists resources such as websites, owner builder centres and other relevant information for tradespeople, materials suppliers and services.

Are you up to it?

The role of an owner builder is demanding, especially if you have a full-time job and a family. As an owner builder you have decided to take on all the tasks that a building contractor must do to complete a successful construction project. You must allocate time to visit the site and keep activities to schedule, check occupational health and safety requirements, order materials, visit suppliers and hardware stores, and make phone calls to remind tradespeople to advise you of delays or revised site timing schedules.³ Your dream home can become a nightmare if you do not plan correctly.⁴

In making a decision to commit to owner-building, you need to consider the following questions:

Are you good at managing situations?

Are you good at organising people?

Do you think ahead and plan?

Do you use common sense?

Do you have the time to commit to the project?

What is your knowledge of the building industry?

What is the condition of your health?

Are you able to handle financial or contractual disputes with subcontractors?

What about your availability to be on-site to receive materials and ensure that they comply with specifications of required quantity and quality?

Do you have the ability to distinguish technically what is defective building work?⁵

Once you have explored and absorbed the contents in this book, owner-building will become a very rewarding and achievable challenge.

2

Responsibilities of the owner builder

It’s the law to obtain all building approvals

The owner builder needs to be aware of legislative requirements. This is why some state authorities have introduced an owner builder course: to enable the owner builder to prepare, plan and manage building projects. Once the development application has been approved, there will be a list of conditions of consent to obey. We suggest you take the time to read the Building Code of Australia for a better understanding of the Australian Standards. The Building Code of Australia requires:

all required inspections

a structurally sound dwelling and retaining walls

safety for the environment

minimisation of impact on the neighbourhood

energy efficiency housing.

Council and authority approvals

Owner builders have a better chance than contract builders of receiving approvals quickly. Our experience working for contract builders has taught us that the administration staff of contract builders are very busy handling multiple council applications. As an owner builder you are usually able to monitor the progress of your application with council more closely.

Some other reasons for the delays with contract builders are:

limited cash flow in the company

large numbers of house orders

variations of working drawings

builders’ employees not working efficiently

errors in applications and paperwork.

The approvals you need

The following are mandatory requirements:

white card safety induction course

owner builder course (required in New South Wales, ACT and Queensland)

building permit

finance

sustainability standards (for example BASIX and NatHERS Certificate approvals in New South Wales)

developer application (if the developer selling the land has guidelines that must be followed)

council approval

water board office and inspections

termite protection inspection

structural engineer piers and slab inspections

private certifier for the commence construction certificate or certificate of compliance

private certifier for the occupancy certificate.

Depending on the proposed dwelling and the location, you may also require the following:

additional council requirements as specified in the development control plan

hydraulics engineer

shadow diagrams and landscape plans (for drawings)

mine subsidence board

demolition of existing dwelling application

heritage codes on existing buildings

bushfire plan site assessment

termite protection ant caps on stumps if using physical barriers.

Each council has its own town planning requirements and protocols. As an owner builder you need to request the relevant development control plan (DCP) from the council for the area in which you wish to build. There may be even more requirements, such as environmental planning, heritage and assessment regulations to follow. The council town planners are there to assist the ratepayers with all building inquiries and requirements, so owner builders are well advised to take advantage of their services.

Options available

If you are a creative person and prefer the actual construction stages of the project rather than the approval and paperwork stages, you have the option to hiring a consultant service to manage the approval process. We used this type of service for our own project and it wasn’t very expensive. You can find businesses offering these services through the Yellow Pages, via the internet, or in any advertising media related to project building.

State authorities

The following state authorities are responsible for issuing permits and approvals:

ACT: Office of Fair Trading <www.ors.act.gov.au/FairTrading/index.html>

New South Wales: Department of Fair Trading <www.fairtrading.nsw.gov.au>

Northern Territory: Consumer Affairs <www.nt.gov.au>

Queensland: Office of Fair Trading <www.fairtrading.qld.gov.au>

South Australia: Office of Consumer and Business Affairs <www.ocba.sa.gov.au>

Tasmania: Office of Consumer Affairs and Fair Trading <www.consumer.tas.gov.au>

Victora: Consumer Affairs <www.consumer.vic.gov.au>

Western Australia: Department of Commerce <www.commerce.wa.gov.au>

Private certifiers

A private certifier is an accredited person who is suitably qualified to inspect and provide documentary evidence of compliance of construction as detailed in the Building Code of Australia. Our private certifier inspected our plans to ensure they were drawn according to regulations, prepared registration certificates with council, inspections, the construction certificate and the occupancy certificate. Our private certifier came to the site for an inspection of works after the following four stages:

frame, steel works, footings, floors, walls and concrete poured (inspection by council or private certifier)

wet area, waterproofing (bathroom, shower, bath) and flashing (between roof and tiles) (inspection)

termite control around the building (termite company inspection)

final: building completed and before occupation (inspection).

There were also in-between approvals and additional paperwork as follows:

contour levels

draftsman (to design working drawings)

colour selections (for kitchen doors, paint etc.)

insurances (for workers on site etc.)

geotechnical study (on the land)

surveyor and peg out of dwelling (by surveyor before the concrete slab is poured).

How long do approvals take?

The average time taken for approvals is six months. This estimate is based on simple proposals and councils that are easy to deal with. It is difficult to understand why this takes so long. However, it is a fact the owner builder needs to confront, especially if you are renting while taking on a building project. It is important to monitor the approval process. For every department that you are waiting on, the idea is to have direct contact if possible with the department or person dealing with the application. Ask for an approximate time frame for the application. If it goes over that time frame, you can question the delay.

To take into consideration and understand the volume of applications departments are assessing, we need to look at where large growth areas are located and where vacant land is available. Sometimes there is a need to travel to the proposed site for an inspection to complete the application approval. Also, there are the usual office delays such as lunch breaks, annual leave, meetings, short staff and sick leave. At other times there is no given reason for why so much time was taken to approve the application. It is essential to remain cool, calm and realistic to avoid any disputes arising.

As an owner builder you need to monitor the progress of your application with regular calls to authorities for status updates. This may help you receive the application approval more quickly. The owner builder course is there to help you understand the requirements for owner-building and is highly recommended.

Supervising subcontractors and services

As an owner builder you are required to supervise all tradespeople, business people and anyone else involved in the construction. There are legal requirements and liabilities when you are committing to a project.

Grounds for dissatisfaction with a particular trade, business or professional service on site include tradespeople:

not fulfilling a scheduled job according to contract or plans

under the influence of drugs, including alcohol

not punctual

bringing animals or pets on site

not licensed or insured as required

not legally entitled to work in Australia

not keeping the worksite in a reasonable state.

The time frame for our approvals

White card and owner builder course: 3 days

Building permit: within minutes (at Department of Commerce)

Finance pre-approval: within 1 hour (1–2 weeks for secure finance with credit checks etc.)

Sustainability standards (BASIX or NatHERS approval): 1–2 weeks

Developer application: 2 days

Council approval: 6 weeks

Water board office: 3 weeks

Private certifier: 4 weeks

Engineer for plans: 2 weeks

Finance – release of funds: 1.5 weeks

Electrician certificate: end of electrical works

Termite protection inspection: 1 week

The state authority that issues building permits will be able to provide you with a list of relevant responsibilities, as they differ slightly from state to state. Please remember, the owner builder is classed as the builder of the project and not the building surveyor. The authority can also help with any disputes that may arise and can give advice if there is a problem or difference of opinion with an encounter.

What work can the owner builder do?

It is necessary to learn the labour limitations of owner-building. While there is the potential to do some work on site to save money, specialist work needs to be completed by a licensed tradesperson. The following are some examples that require licensed tradespeople, but can vary from state to state:

electrical

plumbing

air-conditioning

refrigeration

gas-fitting work

bricklaying

carpentry

concreting

excavating

fencing

roof work

structural landscaping

Work the authors actively took on

Cleaning of site and removal of debris

Labouring for bricklayer

Labouring for roofer

Painting internal walls, doors, skirting and architraves

Wall insulation

Bagging the exterior of the house and garage

The opportunity to physically get involved in the project gave them much satisfaction.

piering

wall and floor tiling

waterproofing

wet and dry plastering

general building

kitchen and bathroom renovations

demolition

erection of prefabricated metal home additions

flooring

building consultancy.

In addition, residential work needs to be completed by a licensed tradesperson and/or needs a building permit where the cost in labour and material exceeds a certain amount. The cut-off figure varies from state to state; it is $1000 in New South Wales. Works may be done without a permit if they are non-structural only.

A safe working environment

Our experience with OH&S

One experience of safety issues on site we had relates to our first bricklayer. He would walk around on site and lay bricks wearing no shoes. He explained to us that he didn’t like wearing shoes, but, as we were responsible if anything happened, we showed our concern and encouraged him for his own protection to wear shoes in accordance with occupational health and safety regulations.

Occupational health and safety regulations protect workers and other people, and business services. They ensure correct disposal of hazardous materials and poisons, and limit noise. A major concern for the owner builder is to ensure the building site is safe. This includes preventing falling materials and the wearing of protective clothing. Unauthorised people need to be excluded from unsafe areas.

Most states have mandatory regulations requiring owner builders to attend or complete owner builder safety-induction courses. These cover important guidelines for occupational health and safety (OH&S) and practical advice on implementing them.

Routine safety measures to be implemented include:

cleaning the site regularly

providing a safety rail for roofers

council laws, e.g. demolished buildings and insurance

providing scaffolding for bricklayers

temporary fencing to exclude unauthorised people

not leaving live electrical wires unattended

tagging and testing all trade equipment in accordance with OH&S legislation.

Licensed contractors

A licensed contractor is a person who has formal permission to contract work and supply at a