# Forum More Stuff Owner Builders Forum  Employing family and friends on an owner build

## owaaco

Dear experienced forum members, I am after some advice about licences for work on my owner builder site.  
I am an experienced handy-man who has already completed many tasks in my own renovation including rendering, internal stud walls, ceilings and cornice, gyprock, hard wall plastering, restumping, flooring and similar tasks on my own home. I am not a licensed tradie but I am confident and competent on the tools. I am now considering taking on my 150m2 two storey addition in Sydneys inner west as a very hands-on owner builder. I have both the time and the finances to do this.  
I understand that I can take on most trades except electrical and plumbing and that, if I employ a tradie in any area, they must be licensed. But what of my unlicensed family and friends? My retired father is also a handyman but he does not hold any trade licence. If he helps me raise the frame on an unpaid basis am I breaking the law?   
What about a friend who works as a labourer for a builder during the week  he is also not licenced (and does not need to be for his week-day job because his employer is licensed). If I employ my friend and actually pay him money (all declared and above board) to help me on the frame, am I breaking the law? He is not a licensed chippy but I will be paying him money. Is he deemed to be my contractor and therefore he must be licensed? Or can I effectively use my owner builder licence and accept the quality/risks of his work myself? Ultimately all the work will be certified to standard by my principal certifying authority.

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## barney118

You are in NSW, so you need to do the OB course, As far as I understand, you are better letting the missus be the OB so you can be employed and be covered by insurances. Anyone working for you you will need to look into insurances, payroll tax etc etc, and the risk is taken by you. They will also need to have a white card to be able to enter a work site and then you have the paperwork to basically be a business, submit BAS etc which is probaly not worth it the costs you are talking about and the management of the site. 
Your DA will state what you need as far as documents to keep them happy, My guess will be waterproof certificate, survey certificate, maybe plumb/electrical certificate,termite protection, all this will be defined on your DA. Also they may request engineers certificate for foundation/concrete/steel work. 
At the end of the day you need to take out home warranty insurance if you sell within the first 6 years OR if the trades/contractor job lot you employ is over $12k, to get around that just pay for labour and buy all materials yourself. 
Look up on BASIX since your build is going to be over $50k, you need to comply with this in your materials ie glazing etc. 
As far as risk just note on your drawings that the build will comply with A.S and BCA, now start reading. 
Welcome to our nightmares ! :Biggrin:

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## Bloss

Pretty simple - see here: Becoming an owner-builder - NSW Fair Trading  :Redface:

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## owaaco

> Pretty simple - see here: Becoming an owner-builder - NSW Fair Trading

  Bloss, thanks for replying and I am aware of the fair trading requirements. I guess that I do not find them (quote) "pretty simple" in the context of my OP. The OB laws make it clear that I (meaning "me" personally on my own home) can do any "non-specialized" trade (not electrical/plumbing). I don't personally have to be a chippy to raise my own timber frame. But what if my family helps me for free? I cannot find that answer on fair trading (or on these forums with a search). And what if money changes hands - between family/friends? Is the implication of the owner building legislation that I am personally and magically endowed with the ability to do all non-specialised trades (for myself) but absolutely non-one else is?

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## Bloss

Ah- 'pretty simple' is what I'd called an ironical expression . . . which is why the emoticon matched the comment. The responsibilities with building licence are the same - the licence holder is responsible for _all the work_ done on the site. That means that you must use licensed tradespeople for work where a specific licence is required (electrical, plumbing, drainage, roofing & stormwater in some states) - that is your responsibility ie: to make sure you only use those who are licensed for work that demands it (so you have to see their license or make sure you have taken reasonable steps to confirm that they are licensed - usually a contract with them is enough). 
For all the other work you alone are responsible regardless of who does the work. The law doesn't prevent you from using family or friends or unlicensed people on work that is not mandated to have a licensed worker and it doesn't care whether you pay or not or under a contract or not (the ATO might be interested!) - YOU are responsible for sign off on all the work they do and with ensuring that it meets all standards required. As you are for your own work of course. That is fundamentally the same for a builder - a bit of a simplification. but close enough. 
You need to make sure that you have appropriate insurance cover for anyone and everyone who comes on your site and might therefore be exposed to risks - and that will likely not be one type of cover. Rare it might be, but if a family member or friend is injured or injures someone else on site then you (and/or your insurer) are likely to have some liability. Likewise if someone simply comes onsite and then injures themselves or others (or does property damage eg: to a neighbour) then you are likely to have a liability. 
These sorts of issues are raised on the Fair Trading site - and they are the regulator which issues the licence so I'd be sure to read front to back. 
Summary - for all work on your site not done by a licensed tradesperson you are responsible (you are 'responsible' for their work too, but so long as you have a contract with them then your risk is transferred to them). That doesn't mean you have to _do_ it all, just take responsibility for what is done.

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## aussieslr

Bloss can you please have a go at rewriting the ownerbuilder online documentation? I did the course last week and you just made more sense then the 500 pages I read. The only thing I would add is don't be afraid of all the horror stories and complexities - if you have the time and money then have a go.

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## ringtail

The way I read it ( the link from Bloss) is says that you can get fined by employing non licenced contractors. It makes no reference to hiring labourers, which I assume is what your family and friends will be ( since they are not tradies). You will have to be careful paying them though. If they have a ABN and get their own accident insurance you might be ok.

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## Bloss

> The way I read it ( the link from Bloss) is says that you can get fined by employing non licenced contractors. It makes no reference to hiring labourers, which I assume is what your family and friends will be ( since they are not tradies). You will have to be careful paying them though. If they have a ABN and get their own accident insurance you might be ok.

  But that only means contractors who are required to be licensed - ie: it relates to those doing work which _must_ be done by a licensed person (as mentioned the usual trades - sparky, plumber and so on). So if you use someone for work in that category then they must be licensed - that's why I said the OB must take all reasonable steps to confirm that. Usually it would be enough to have a contract or quote even from the tradie showing the licence details - your entitled to assume good faith that if someone says they are licensed and offers a number they are licensed. If I were an OB I'd be actually getting online to confirm and keeping a record that I did so. 
The owner builder is licensed to do all the other work (ie: the work a regular builder is licensed for a particular Class of structure - in this case residential) - and is responsible for compliance regardless of who physically does it.  
Even though there is a certifier the owner builder is the responsible person - albeit if they could prove they were acting on the advice of a certifier they might be able to CYA on any issue.

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## owaaco

@Bloss Thank you for the generoisty of your comments. Your time is very much appreciated!   

> I did the course last week and you just made more sense then the 500 pages I read.

  @aussieslr What state are you in? NSW? Which online course did you do? It does not sound like you would recommend it? I still need to select my OB course provider. Do you have any advice?

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## ringtail

I would just ring them and ask if a labourer is deemed to be a contractor and if so how can you employ a labour as a contractor when they have no licence and no ability to get a licence since their is no such thing as a "labouring trade" ? That will stuff em'. I wouldn't be surprised if they cant answer and just try to baffle you with bull crap. If they tell you that the labourer is doing "building work" under a builders licence tell them that you are no different as you are a OB and have a licence too.

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## METRIX

I would suggest you ring your insurance company and expain the situation to them, for covering non paid persons on site, depending on your insurer they can be very helpful or mildy ok we use Tradesure and they are great with advice on what is and is not covered, and how to get it covered if it isn't. 
Irrespective every person who comes on your site, must have a Construction Induction card as mandated by Workcover, if your family members do not have this, you are taking a big risk having them on site, and if they are not covered by your insurance policy then it is simply not worth it. 
Workcover WorkCover Authority of New South Wales - Construction induction card 
From their site  *It is required for people:*  *carrying out construction work, including site managers, supervisors, surveyors, labourers and trades persons   * *who access operational construction zones unaccompanied or not directly supervised by an inducted person, and * *whose employment causes them to routinely enter operational construction zones. *    
It may sound petty but things can and do wrong, and you need to be 100% sure you are covered if the situation reaches a level where an insurance policy is enacted on. 
Good Luck

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## barney118

> Irrespective every person who comes on your site, must have a Construction Induction card as mandated by Workcover, if your family members do not have this, you are taking a big risk having them on site, and if they are not covered by your insurance policy then it is simply not worth it. 
> Workcover WorkCover Authority of New South Wales - Construction induction card  
> Good Luck

  This is the issue for you, it becomes a construction site and if you are taking short cuts or someone around you doesnt like the look of things from a safety perspective, ie working at heights, or there is an accident on site, workcover will be in your face.

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## ringtail

All sounds a bit anal in NSW. Owner Building is a lot more relaxed up here. Get the permit and just get it done. Use licenced trades ( sparky, plumber, wetseal and pest) for the form 16's, engineer if required for the form 15's, if a chippy helps he will give a form 16 for his work. - but mostly very little red tape and other rubbish, just do it. No one gives a crap as long as the money changes hands and the boxes are ticked, after all, box ticking and $$$$ is what its all about.

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## Cecile

> They will also need to have a white card to be able to enter a work site and then you have the paperwork to basically be a business, submit BAS etc which is probaly not worth it the costs you are talking about and the management of the site.

  Regarding being in business, this is pretty complex stuff and full of tax rulings and legislation.  I know nothing about a "white card" but I do know a LOT about how to help someone determine whether or not they are in business.   
If you want some guidance, PM me and I'll see what I can find for you to read.  I will NOT however give you any advice!

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## Bloss

> All sounds a bit anal in NSW. Owner Building is a lot more relaxed up here. Get the permit and just get it done. Use licenced trades ( sparky, plumber, wetseal and pest) for the form 16's, engineer if required for the form 15's, if a chippy helps he will give a form 16 for his work. - but mostly very little red tape and other rubbish, just do it. No one gives a crap as long as the money changes hands and the boxes are ticked, after all, box ticking and $$$$ is what its all about.

  Gotta love Queensland . . .  :Wink:  but as Metrix & barney118 say - it's about risk. I know many simply take the punt and most get away with it OP's call.

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## aussieslr

Owaaco I'm in NSW and I used Absolute Education. They do an online white card too which is a prereq for owner builder. I had no problem with the provider and it was a simple enough process. I got the white card and OB all done last weekend and the documents arrived today. I just did it for the learning so I can't comment on how hard Fair Work is to deal with. My problem with the material is more to do with how OH&S and legal material is written. You nearly have to read through it and make notes so you can summarize it to make sense of it. Bloss's wording was really helpful in outlining what is required then it is up to you to fill in the details. Just for the record to I spoke to a work mate last week who OBed his house. No contracts at all, house all ticked off and looks a million dollars. He knows every second tradie in town though so he could trst his trades.

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## METRIX

> All sounds a bit anal in NSW. Owner Building is a lot more relaxed up here. Get the permit and just get it done. Use licensed trades ( sparky, plumber, wetseal and pest) for the form 16's, engineer if required for the form 15's, if a chippy helps he will give a form 16 for his work. - but mostly very little red tape and other rubbish, just do it. No one gives a crap as long as the money changes hands and the boxes are ticked, after all, box ticking and $$$$ is what its all about.

  It's no different in NSW, you also need to use licensed trades for plumbing, electrical, Pest, Waterproofing etc. 
There's nothing anal about protecting yourself from liability, and protecting yourself and your workers if they become injured. 
It might sound like a good idea to bring some family members on site for a few days here and there to assist with lifting etc, but it is still a construction site, and for someone who does not work in the construction industry a work site can be a potential mine field, there is a lot of things which can go wrong and one of your family members might get injured or worse killed. 
I know of a mate who had a quote from me to fix his leaking roof, and decided to "get the job done" another way by using his father in law to repair it for free, his father in law fell off the roof onto the concrete and fractured his hip, skull, and broke two ribs, he ended up in hospital for many weeks and was lucky he didn't suffer worse, needless to say I was then called up to repair the roof after all, how guilty must he feel for doing this ?.  
It is not just a matter of getting the job done, these days you need to be aware of your responsibility as either the builder or OB, an OB needs to be especially diligent in this area as they don't normally work in the industry, and are not aware of how much responsibility they actually have, they need to keep a safe workplace for all [tradies and non tradies] as well as a lot of other stuff, [see below extract from fair trading website] 
The white card is now a National Standard to rid the system of the state based different requirements which previously existed, QLD already had the Blue Card, which is basically the same as the new Nationally Recognised White Card, they all cover the OHS of working on a work site, and are designed to give a person new to the industry, an understanding of the risks and hazards involved in the industry, basically the worst thing an office worker has to deal with is a paper cut, on a work site a paper cut is the last thing you would be thinking about.  *National 'White Card'* 
 Under the current state-based system each jurisdiction with a  regulatory requirement for construction induction training has a  different type of general induction evidence card ranging from the 'Blue  Card' in Queensland to the 'Red Card' in Victoria. 
 Under the code states will transition from their current format to  the nationally agreed 'White Card' format. 
Once the national code is  fully implemented these cards will be recognised around Australia.   *What are my responsibilities as an ownerbuilder?* 
                                                                                                                                     As an owner-builder, you are responsible for:   overseeing and supervising all tradespeople ordering of materials and management of the building site obtaining all necessary council and authority approvals ensuring that the financial, taxation and insurance requirements of the building work are met and fully comply with all laws being aware of your obligations under the _Workers Compensation Act 1987_ and _Occupational Health and Safety Act 2000_ and providing a safe work environment that complies with WorkCover requirements  ensuring any contractor engaged is appropriately licensed and insured to do the work contracted for warranting that the work and materials will be fit for the purpose and that the work results in a dwelling fit for occupation. 
  Do your sums before you start and ask yourself if any saving you will  make is worth the time and responsibility it will take. As an  owner-builder you are guaranteeing the work you undertake.
  It is an offence under the Home Building Act (maximum penalty $22,000) for the holder of an owner-builder permit to:   knowingly engage an unlicensed contractor lend your permit to another person refuse to disclose to an authorised officer the names and addresses of contractors working on the site. 
  If you dont want the responsibility of being an owner-builder, you  should be wary of a builder who suggests you obtain an owner-builder  permit while they do all the building work for you. This may be a ploy  where the builder is shirking responsibility, is unlicensed, or is  unable to get necessary insurance. *Warning!* - As an owner-builder you are guaranteeing  the work you undertake. The next immediate owner of the property is  entitled to the benefit of statutory warranties set out in the _Home Building Act 1989_.

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## METRIX

> Just for the record to I spoke to a work mate last week who OBed his house. No contracts at all, house all ticked off and looks a million dollars.

  I would highly advise against having work done with No Contracts in place, you are just asking for trouble with a capital T, my brother works for Fair Trading NSW, and some of the stories I hear of builders and OB having work done with no contracts in place and it all going pear shaped are unbelievable. 
As I said in my earlier post an OB needs to understand their responsibilities, and take these seriously, as if something goes badly wrong it can ruin you financially, this is something you learn when running your own business, you wont learn this from a book or an on-line course. 
Having contracts or no contracts does not ensure your place will get ticked off, this is from the certification the trades or certifier will give you when the work is done.

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## ringtail

Amazing what a temp fence and a "construction site, do not enter " sign can achieve.  I dont know what the law is down there but up here all tradies that are *not* on wages must have their own liability insurance and *personal accident and injury insurance*. The OB does not, as far as I'm aware, provide any form of workcover for contractors that are engaged, but does accept the liablity for the work they perform. The same for a real builder that engages subbies.

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## METRIX

Exactly the same here, contractors have their own insurances etc, and you need to SITE these and ensure they are current before contracting them to do work for you.

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## owaaco

Thank you to everyone who is commenting on this thread. I appreciate all of the comments and am just noting that I am still here listening and learning. I intend to do it all the "right" way. My OP was aimed at ensuring that using family/friends on both a paid and unpaid was "right". I am hearing that if I want to do it all above board, then everyone (even family) must have a white card (OK, fair enough) and that I can employ or sub-contract to unlicensed friends/tradies where the work they will do is not required to be licensed. If they are employed by me directly, I must provide the appropriate insurances and I need to check with my insurer to ensure they are covered - particularly unpaid family. Sub-contractors must provide their own insurances and I must sight this and, only where required, subbies must also provide a license (and home warranty if the work exceeds the $$ threshold).

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## barney118

> Gotta love Queensland . . .  but as Metrix & barney118 say - it's about risk. I know many simply take the punt and most get away with it OP's call.

  It is up to you, you can let them help and either get them to sign a waiver on risk, I cant see why a verbal is also good enough (there is such thing as verbal contracts) , ie you enter the site by own risk. Or simply state they are responsible for insurances, Again its about the chances of someone getting hurt etc. At the end of the day its your responsibility if someone decides to sue or gets hurt then ..... paying them for their work then you would have to take out insurances etc becomes more complicated, nd need to abide by running a company if they dont have ABN etc.

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## METRIX

Yes Verbal agreements are acceptable in certain circumstances, but if your talking about safety and a family member who can get hurt, and possibly disabled in some way which they are no longer able to perform their "real" job things can get really nasty when they are faced with the prospect of becoming un-employed from their "real" job because of the injury and don't have any personal insurance to cover for this. 
OB can commonly fall into this type of trap, because they became an OB overnight by simply doing a course, and not from years of study and real life experience as a real builder has done, and who is fully aware of their responsibilities to themselves their family and others who they let work on their site [hopefully they should be fully aware]. 
It gets really sticky when situations like this happen, who is to blame, ? the OB, the family member, Workcover, ultimately it's the OB as they let the situation arise on their site.
It all comes back to common sense, and not opening yourself up to un necessary risks, as the joy of becoming an OB and the pleasure you will get when the job is done, knowing you did it, will soon turn to disappointment, with some timely advice and simple precautions you will be ok. 
Remember to enjoy the OB experience, as you only get to do it once every 5 years.

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## aussieslr

@Metrix Building. Builders aren't the only people going around that have the capability of running a building site efficiently and safely. I have 15 years of industrial trade experience to draw upon for a start. The guy I mentioned without the contracts has 25 years domestic and industrial trade experience plus a multitude of life long friends to get his house built. Just tarring all potential owner builders with the 'no experience in anything' brush just annoys me no end. Experienced tradesmen and good quality handy men just need to do a bit of research, sort out what is required to cover the different risks and then focus on getting it done without any stuff ups. Thats what annoyed me about the OB online notes - 500 pages could have been compressed into a couple of pages just like you did with your post. Then OB could feel confident they are covered and get on with actually have a safe work site.

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## METRIX

Sorry aussieslr if I have offended you, I was not saying all OB are not competent in running a safe site, and I did not say they have no experience in anything, If you are taking on the role of an OB then you must be relatively experienced and confident in your skills or else you would not take on such a task. 
I am not questioning your or any one else's skills as I don't know who you are or what you do or what background you come from. 
I was saying that to become an OB is a relatively easy process to do in comparison to being a qualified builder, and sometimes when these things are done so quickly things can be overlooked as so much information is given to an OB in such a short time, and it wont all be understood. 
I agree that 500 pages of information is not going to be absorbed by anyone no matter how diligent they are, I guess it's a hard process to do, do they give you information overload, or just enough to get you going, it's a hard one to juggle things like these. 
I do stand by my comments for not using contracts, this IS the wrong way to do it and It IS Illegal [see DOFT contracts section below.] and should not be promoted, as OB or Builders can get themselves into all sorts of trouble when something goes wrong, and not everyone has 25 years experience and a multitude of life long friends to help them get their build done. 
Please don't get offended, I am not having a go at you and I am not saying you are not smart enough to understand the risks involved, im sure you are, I have done a lot of work for OB over the years as it all became too much for them and they didn't know where to turn, so they ended up calling in the "Good Quality Handy Men" to help them achieve their goal, which is what we did without questioning their ability. 
Anyway I hope you enjoy your OB experience and everything goes your way.  
BTW I don't agree with comments that Experienced tradesmen are good quality handy men, That sort of comment is usually from someone who does not understand the Physical Blood Sweat and Tears Tradies go through on daily basis, and on top of this trying to run your own company with all the legistlation, BAS, Insurances, employees, contracts, keeping clients happy and the million other things that you have to deal with, I don't think your average Handy Man would know where to start, there is one very important word you used "Experience" this counts for a lot in this trade, as any tradie will tell you, you need to be thick skinned in the building inustry or you won't last long. :Biggrin:  
Below is the extract from DOFT website, this probably has more information than the 500 pages you mentioned for the OB course. :Sneaktongue:   *What is ownerbuilder work?* 
                                                                                                                                     Owner-builder work is any work (including supervision and  co-ordination) involved in the construction of, or alterations, repairs  or additions to, a dwelling (which includes a house, terrace,  town-house, garage, swimming pool and certain other structures and  improvements):    where the reasonable market cost (including labour and materials) exceeds $5,000, and which relates to a single dwelling or dual occupancy:  that requires development consent under Part 4 of the _Environmental Planning and Assessment Act 1979_, or that is a complying development within the meaning of that Act.   Top of page  *What are my responsibilities as an ownerbuilder?* 
                                                                                                                                     As an owner-builder, you are responsible for:   overseeing and supervising all tradespeople ordering of materials and management of the building site obtaining all necessary council and authority approvals ensuring that the financial, taxation and insurance requirements of the building work are met and fully comply with all laws being aware of your obligations under the _Workers Compensation Act 1987_ and _Occupational Health and Safety Act 2000_ and providing a safe work environment that complies with WorkCover requirements ensuring any contractor engaged is appropriately licensed and insured to do the work contracted for warranting that the work and materials will be fit for the purpose and that the work results in a dwelling fit for occupation. 
  Do your sums before you start and ask yourself if any saving you will  make is worth the time and responsibility it will take. As an  owner-builder you are guaranteeing the work you undertake.
  It is an offence under the Home Building Act (maximum penalty $22,000) for the holder of an owner-builder permit to:   knowingly engage an unlicensed contractor lend your permit to another person refuse to disclose to an authorised officer the names and addresses of contractors working on the site. 
  If you dont want the responsibility of being an owner-builder, you  should be wary of a builder who suggests you obtain an owner-builder  permit while they do all the building work for you. This may be a ploy  where the builder is shirking responsibility, is unlicensed, or is  unable to get necessary insurance. *Warning!* - As an owner-builder you are guaranteeing  the work you undertake. The next immediate owner of the property is  entitled to the benefit of statutory warranties set out in the _Home Building Act 1989_.  *How do I get an ownerbuilder permit?* 
                                                                                                                                     To get an owner-builder permit, you must lodge a completed  owner-builder permit application at a Fair Trading Centre and show  that:   you are over 18 years old you own the land or have a prescribed interest in the land (certificate of title or rate notice) you live or intend to live in the completed home or one dwelling of the dual occupancy as your principal residence. 
  You must also provide:   a description and address of the proposed work with a copy of the  plans and council development application number or complying  development certificate number the owner-builder permit application fee where the value of the proposed work is over $12,000, evidence that  you have either completed the approved owner-builder course, or can  satisfy the approved equivalent qualifications. 
  The following publications provide more information and they are also available as pages on the Fair Trading website:  _Owner builder approved education course_ _Owner-builder equivalent accreditation_. 
  There are no exemptions from the need to complete the approved course unless you hold an approved equivalent qualification.
  A permit cannot be issued for work that has already commenced. A  spouse or relative will not be issued with an owner-builder permit for  their partners or familys land.
  Also, there are specific rules for applicants where a company owns the land. Contact Fair Trading for details.   *What are my limitations under an ownerbuilder permit?* 
                                                                                                                                     An owner-builder permit is not a building licence. It does not allow you to:   do work other than the project covered by the development application or complying development certificate do specialist work such as electrical, plumbing, gasfitting,  air-conditioning and refrigeration work (unless you hold a licence for  such work). 
  Only one owner-builder permit can be issued within any 5-year period,  unless the application and any earlier permit relate to the same land,  or unless special circumstances exist. Top of page  *Approvals needed for building work* 
                                                                                                                                     Most building work needs the following approvals before work can start. *Development consent or Complying Development Certificate (CDC)* 
  Your local council can issue a development consent. If a CDC is  permitted for the type of development you propose under the councils  local plan, it can be issued by your local council or an accredited  certifier. *Construction approval* 
  Approval for the work (a construction certificate) can be given by either your local council or an accredited certifier. *Note:* You do not need a construction certificate if you have a CDC.
  During construction, the building work must also be inspected by  council or an accredited certifier to check that it meets national  building standards (the Building Code of Australia).
  A certificate to allow occupation or use of the completed building  work (occupation certificate) can only be issued if the work generally  meets these standards.
  For more information about building work approvals and choosing a certifying authority go to the _Consumer building guide_ page of the Fair Trading website to view or download Fair Trading's _Consumer building guide_ booklet.
  You can also get more information about the approvals process and  choosing a certifying authority from the Building Professionals Board,  at www.bpb.nsw.gov.au or by calling 9895 5950.   *Use licensed tradespeople* 
                                                                                                                                     All tradespeople (whether contracting directly with home  owners or sub-contracted through a builder), who undertake residential  building work costing over $1,000 (labour and materials), must hold a  licence from NSW Fair Trading for the type of work they are to do.  Specialist tradespeople who carry out any of the following must be  licensed regardless of the cost of the work:   electrical wiring plumbing, draining and gasfitting work air conditioning and refrigeration work (except plug-in appliances). 
  Once you find a tradesperson and before you sign any contract, don't forget to:   ask to see their licence go to the online licence check  on the Fair Trading website to make sure it is current, valid and  suitable for the work you want done, or call Fair Trading and do a  licence check over the phone.    *Contracts* 
                                                                                                                                     By law, all building trade contractors doing residential  building or any specialist work valued over $1,000 must provide a  contract in writing to the home owner. As an owner-builder, you will  probably be entering into several contracts with different tradespeople. 
  Once you decide to go ahead with a tradesperson, they should give you  a written contract. You should make sure you understand it fully before  signing. For more information, refer to the Contracts page on the Fair Trading website. *Fair Trading building contracts* 
  NSW Fair Trading has developed the following home building contracts:   _Home building contract for work between $1,001 and $5,000 _ Suitable for trade work, maintenance and repair work as well as  smaller alterations or improvements likely to cost less than $5,000. _Home building contract for work over $5,000 _ Suitable for new homes, major alterations and additions. 
  These contracts, which are fair to both parties and written in plain  English, are available free of charge and can be accessed from the Fair Trading contracts page on the Fair Trading website.   *Home warranty insurance* 
                                                                                                                                     Each licensed contractor (builder, tradesperson or project  manager) who contracts directly with an owner-builder to undertake  residential building work must provide home warranty insurance from one  of the approved insurance providers when the total contract sum exceeds  $20,000 (including material supplied by the contractor). The certificate  of insurance should be provided to the owner-builder before taking any  money on the contract and before starting any work. For more  information, refer to the Home warranty insurance page on the Fair Trading website. *Selling an owner-builder built home* 
  Should an owner-builder decide to sell their home within 6 years  after completion of the work, the owner-builder will need to take out  home warranty insurance where the market value of the whole project  (including labour and materials) was of a certain value.
  For work completed after 1 February 2012, home warranty insurance needs to taken out for work valued at over $20,000.
  For work completed prior to 1 February 2012, home warranty insurance  needs be taken out if the value of the project was more than $12,000.
  All owner builder work is taken to be complete 18 months after the  issue of the owner builder permit, unless the work is practically  complete earlier than this, that is, the work is reasonably capable of  being used for its intended purpose other than minor defects or  omissions. (Note: a different definition of completion applies to owner  builder work where legal proceedings were underway or were finalised  before 25 October 2011.)
  The contract for sale must:   include a note that an owner-builder permit was issued in relation to the work carried out have the home warranty insurance certificate attached. 
  If home warranty insurance is not arranged, the purchaser can void  the sale contract before settlement. The home warranty insurance scheme  provides protection to a subsequent purchaser (successor in title) of a  property where the purchaser is unable to have any defective  owner-builder work (not apparent at the time of purchase) rectified  because of the death, disappearance or insolvency of the owner-builder.
  From 1 February 2012, home warranty insurance policies must provide  cover of at least $340,000. Between 28 February 2007 and 31 January  2012, the minimum cover that had to be provided was $300,000.
  Approved insurance agents and their brokers that provide home warranty insurance to owner-builders are listed under the Approved insurance agents page on the Fair Trading website. *Warning!* - As an owner-builder you are guaranteeing  the work you undertake. The next immediate owner of the property is  entitled to the benefit of statutory warranties set out in the _Home Building Act 1989_,  and can take you, the owner builder, to the Tribunal to enforce their  statutory warranty rights. This may result in a money order against you.
  If you should decide to sell within the 6-year period, make sure you  contact the insurers well in advance of marketing your proeperty to  check their requirements. Top of page  *Other insurances* 
                                                                                                                                     The following are some other insurances owner-builders might need to take when doing home building work. *Workers compensation insurance* 
  Owner-builders should take out a workers compensation insurance  policy and ensure that they are fully covered in respect of persons they  engage to carry out work. Any contractors engaged by an owner-builder  may be deemed to be a worker of that owner-builder.
  For more information about workers compensation insurance, contact WorkCover at WorkCover Authority of New South Wales - Welcome to WorkCover NSW or call 13 10 50. *Contract works insurance* 
  This insurance should be obtained by builders and trade contractors.  It is for your protection and covers loss or damage to materials and  work. if the builder or trade contractor does not have this type of  insurance, you may risk inconvenience, time delays and disputes if  materials are damaged or stolen. *Public liability insurance* 
  If you intend to be an owner-builder or to contract out any type of  building work (for which you remain responsible for co-ordinating), it  is strongly recommended that you take out a public liability insurance  policy.
  This covers you if a family member or member of the public is injured  as a result of the building work. You could be liable because you own  the property. Top of page

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## aussieslr

No worries Metrix. I've got all my toys back in my cot now and I'm good haha. If anything I'm probably being a bit touchy. You guys do an amazing job day in day out and I appreciate the level of skill and experience involved. Keeping up with such a dynamic business must nearly do you head in.  I'll be printing out your advice and adding it to my OB file for future reference.

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## METRIX

All is Good :Biggrin:

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## woodchip

All very good info above on a complicated issue that even the authorities(workcover & DFT) have trouble understanding & explaining!, (try phoning them & getting a clear answer!). 
I am currently doing an OB (new home, in NSW), I spent a long time reasearching this very thing....& what I came up with is 
Yes, all persons 'working' on the site must have the 'safety induction' card.
There is a provision in the workcover Act, that providing you do not pay over a certain $$ amount to any one person (I think its $7500pa), you do not need to take out workers comp' on that person, if an accident happens you arrange it within 48hrs after the accident(from memory). This info I got from insurance companies.
The OB takes responsibility for everything, including contracted, licensend subbies safety. 
If you have your own kids helping out ie, moving a few bricks or whatever, you again take full responsibility as you would as a parent asking your kids to do anything,
if you have 'Uncle Bob' helping you...this is where that $7500 threshold is applicable. 
thats my understanding anyway, & after all that research I did it could be wrong 
cheers

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## Bloss

> I would highly advise against having work done with No Contracts in place, you are just asking for trouble with a capital T, my brother works for Fair Trading NSW, and some of the stories I hear of builders and OB having work done with no contracts in place and it all going pear shaped are unbelievable. 
> As I said in my earlier post an OB needs to understand their responsibilities, and take these seriously, as if something goes badly wrong it can ruin you financially, this is something you learn when running your own business, you wont learn this from a book or an on-line course. 
> Having contracts or no contracts does not ensure your place will get ticked off, this is from the certification the trades or certifier will give you when the work is done.

   :What he said:  Nothing I have said contradicts this - I just said it a bit simpler . . . and related mostly to the question of who you use. And as has been said - the main thing is that the buck stops with whoever holds the licence for the work - and that's the owner builder. And get it wrong or just get unlucky and it could be big buck(s)! 
Remember the only real saving (there are other factors such as the convenience of managing when things get done so you can control cash flow etc etc) is labor. That is only a 'saving' if you value your own time, and that of anyone who helps you, less than the professionals you might otherwise use.

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