It is a requirement under the Queensland Building Services Authority Act 1991 (QBSA Act) that if you wish to perform or coordinate domestic building work on your property for a single project of a value of more than $11,000 you must hold an owner builder permit. An owner builder permit is only issued by BSA.
Any individual or company can be issued with a permit provided they are one of the following:
a person listed on the property title
a company director if the property is owned by a company
a lessee if the property is under a lease agreement
Examples of types of work covered under an owner builder permit:
Construction of a new house
Renovation or Alteration to an existing dwelling
Extension or addition to an existing dwelling
Construction of a garage, carport or domestic shed
Construction of a swimming pool
Construction of a pergola or entertainment area
This list is not exhaustive.
What types of work are not covered by an owner builder permit?
The permit must be for a building used for residential purposes only. A permit will not be issued for construction or renovation of multiple dwellings, commercial premises (e.g. duplexes, boarding houses, shops, industrial buildings, farm buildings etc). Where the work is to be carried out on a farm building please contact BSA as in certain circumstances this work may be exempt from the requirement to be carried out by a licensed person.
Does an Owner Builder Permit expire?
Yes. A permit ends 6 years after its issue or on the earlier date stated on the permit (QBSA Act 1991 s44D)
What does value mean?
Value of building work is defined in the QBSA Act as the amount representing the reasonable cost to a consumer of having the work carried out by a licensed contractor on the basis that all building materials are to be supplied by the contractor (whether or not the work is in fact carried out on that basis). This means that when you calculate the estimated value of building work you MUST include the cost of materials and the amount a licensed contractor would charge you for the work - including GST.
Is owner builder work covered by BSA's Home Warranty scheme?
No - By becoming an owner builder you forfeit your right to BSA insurance on the building work performed. As an owner builder in your role as head contractor, you will be personally responsible for dealing with individual contractors if problems in workmanship occur. You will also be personally responsible for payment to rectify any defects in the building work or to complete any work left incomplete by an individual contractor.
If you are selling the property where you performed owner builder work within 6 years after completion, Section 47 of the Queensland Building Services Authority Act 1991 states you MUST, before signing the contract of sale, provide the prospective purchaser with a notice which contains:
Details of the building work performed;
The name of the person (owner builder permit holder) who performed the work;
A statement confirming the work was performed under an owner builder permit; and
The following warning:
"WARNING - THE BUILDING WORK TO WHICH THIS NOTICE RELATES IS NOT COVERED BY
INSURANCE UNDER THE QUEENSLAND BUILDING SERVICES AUTHORITY ACT 1991"
This notice MUST be given in duplicate to the prospective purchaser who must sign one copy of the notice and return it to the vendor on or before signing the contract of sale.
If this notice is not provided to the prospective purchaser the vendor is deemed to have given the purchaser a contractual warranty (which operates to the exclusion of any inconsistent provision of the contract of sale) that the building work was properly carried out.
Will BSA assist with disputes?
No - As an owner builder your role is that of head contractor and you will be personally responsible for dealing with individual subcontractors if there are problems with the work carried out or payment. Assistance may be available through the Queensland Civil and Administrative Tribunal or Queensland Courts.
Publications
LIS - 018 Owner Builder Permit - Multiple Dwellings
LIS - 028 Owner Builder Permit - Plans and Specifications
